The Property Market in 2025: What Could Be on the Horizon?

In this episode, we’re taking a look ahead at what might shape the property market in 2025. No, we’re not here to predict the future or pull out a crystal ball, but we are diving into the key factors that could have an impact—things like interest rates, immigration, intergenerational wealth, and stock levels. Whether you’re planning to buy or sell, we’ve got some thoughts on what you might want to keep in mind.

We kick things off by reflecting on what’s surprised us in 2024. For Veronica, it’s been Sydney’s stability—a balanced market for the first time in over a decade. For Chris, it’s been the sheer scale of intergenerational wealth propping up buyers. We chat about how that’s shaping the market and what it means for affordability, especially as borrowing capacities remain constrained.

There’s also a lot to unpack when it comes to investors. Some are still bailing out of the market, while others—especially first-time investors—are jumping in. And with zoning changes, rising rental pressures, and even some quirky local issues like mozzie-prone suburbs, buying property isn’t as straightforward as it used to be. It’s a reminder that doing your homework (or working with someone who really knows the area) is more important than ever.

As we look ahead, the upcoming federal election and potential shifts in policy—like APRA changing serviceability buffers—are going to play a huge role. We talk about how these kinds of changes could inject urgency into the market, especially as buyers try to get ahead of the herd. But as always, we caution against trying to time the market and instead focus on making decisions based on your own goals and readiness.

And yes, we touch on climate change too, because the landscape there is evolving. New flood maps, shifting risks—these are things we’ll all need to consider going forward. If 2025 brings anything, it’ll be the unexpected, but don’t worry—we’ll be here to help you make sense of it all. So tune in and get a clearer picture of what might be on the horizon.

Episode Highlights:

00:00 - Introduction

01:04 - What was surprising about the property market in 2024

04:56 - Regional market dynamics

07:46 - Investor behaviour and market inequalities

12:54 - Will interest rates be the biggest driver of prices?

13:55 - Urban planning and zoning issues

20:20 - How market cycles, interest rates & consumer confidence shape investment decisions

26:29 - How regional moves and remote work trends are changing this coming year

33:18 - How rental pressures are evolving, and what they mean for 2025

40:00 - What might the upcoming federal election mean for the property market in 2025?

44:42 - Consumer sentiment

51:07 - What role will climate change and new flood maps play in property decisions?

Resources:

• Visit our website https://www.theelephantintheroom.com.au

• If you have any questions or would like to be featured on our show, contact us at: The Elephant in the Room Property Podcast questions@theelephantintheroom.com.au

• Looking for a Sydney Buyers Agent? https://www.gooddeeds.com.au

• Work with Veronica: https://www.veronicamorgan.com.au

• Looking for a Mortgage Broker? https://www.flintgroup.au

• Work with Chris: chrisbates@flintgroup.au

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