SPRING PROPERTY MARKET TIPPED FOR HOTTEST RUN IN YEARS

The spring property market is shaping up as the most active in recent memory, according to property experts Two Red Shoes.

Mortgage brokers Rebecca Jarrett-Dalton and Brett Sutton point to a potent mix of pent-up buyer demand, robust seller confidence and the First Home Guarantee Scheme as catalysts for a sustained run.

“We’re seeing an unprecedented level of activity, with high auction numbers already a clear indicator of the market’s trajectory,” said Sutton. “Last week, Sydney saw its second-highest number of auctions for the year. This kind of volume, even before the new First Home Guarantee Scheme (FHGS) changes take effect, signals a powerful market run.”

Rebecca Jarrett-Dalton added a note of caution. “While inquiries are at an all-time high, the big question is whether we will have enough stock to meet this demand. The market is incredibly hot, and this could lead to a highly competitive environment for buyers, with many homes selling for hundreds of thousands above their reserve.”

“With listings not keeping pace with buyer demand, buyers are needing to compromise faster and bid harder.”

Two Red Shoes identifies several spring trends. The First Home Guarantee Scheme is expected to unlock a wave of first-time buyers by enabling eligible purchasers to enter with deposits as low as 5 per cent. The firm notes this supports entry and reduces rent leakage, but it is a demand-side fix that risks pushing prices higher around the relevant caps.

Buyer behaviour is shifting toward flexibility. With competition intense, purchasers are prioritising what they can afford over ideal suburb or land size. Two Red Shoes expects the common first-home target price to rise to between $1 and $1.2 million over the next six months.

Affordable corridors are drawing attention. The team highlights Hawkesbury, Claremont Meadows and growth areas such as Austral, with Glenbrook in the Lower Blue Mountains posting standout results. Preliminary Sydney auction clearance rates are holding above 70 per cent despite increased listings, underscoring the depth of demand.

The heat is not without friction. Reports of gazumping have risen, including instances where contract statements were withheld while agents continued to receive offers, reflecting the pressure on buyers in fast-moving campaigns.

Rates are steady, yet some banks are quietly trimming variable and fixed products. Many borrowers are maintaining higher repayments to accelerate principal reduction. “We’re also seeing a strong trend in rent-vesting, where owner-occupiers are investing in a property with the eventual goal of moving into it,” said Jarrett-Dalton.

“This is a smart strategy for safeguarding one’s future in this competitive market, where all signs point to an exceptionally busy and action-packed season.”

Two Red Shoes expects momentum to carry through the holiday period and into the new year, with competition remaining elevated while stock lags demand.

Australia’s most coveted real estate isn’t found in penthouses, trophy suburbs or architectural showpieces. It’s found on the water’s edge.

New analysis shows that absolute waterfront homes continue to outperform the wider prestige market, with buyers prioritising lifestyle, wellness and long-term security, firmly placing beachfront, harbourfront and riverfront properties in a class of their own.

According to new data from McGrath’s The Waterfront Advantage report, waterfront homes across Australia now command an average 86 per cent premium over comparable inland properties.

Sydney leads the increase at 122 per cent, followed by the Gold Coast at 82 per cent, Brisbane at 59 per cent and Melbourne at 43 per cent. All major cities have seen premiums rise over the past two years, underscoring the enduring power of a blue-chip waterfront position.

A Market Defined by Scarcity and Lifestyle Shifts

Several drivers sit behind this sustained strength.

The scarcity of absolute waterfront land, combined with limited turnover, has long kept supply tight. But in recent years, buyer appetite has surged as Australians place greater value on wellness, nature, and the quality of time spent at home.

The research notes that even in uncertain economic periods, prestige waterfront properties remain “reliable investments” thanks to their strong marketability and ease of repositioning within a portfolio. These homes are sought-after for both lifestyle and legacy value.

Absolute Waterfront Outperforms All Other Positions

Not all waterfront locations carry equal weight. In the year ending Q3 2025, super-prestige sales on the absolute waterfront rose 6 per cent, while waterfront reserve properties fell 30 per cent, and opposite-waterfront homes dropped 34 per cent. Premium buyers want direct frontage, and they are increasingly decisive when the right property comes onto the market.

Queensland continues to dominate East Coast waterfront activity, accounting for 58 per cent of all waterfront super-prestige sales, ahead of NSW at 38 per cent.

Victoria has remained consistent at around 9 per cent. Over the past five years, Barangaroo topped the charts for absolute waterfront apartment sales (73 sales), while Mosman led house transactions (38 sales). Regional standouts included Broadbeach Waters and Noosaville.

Maritime Facilities: The Luxury Buyers Now Expect

For prestige homeowners, proximity to water is only part of the appeal. Increasingly, buyers want direct boating access and exclusive maritime amenities.

The report shows that two-thirds of absolute waterfront sales included at least one maritime facility. Pontoons appeared in 28 per cent of sales, jetties in 26 per cent, and smaller shares featured slipways or moorings.

This reflects Australia’s strong boating culture. More than 900,000 vessels were registered nationally in 2025, with 83 per cent located along the East Coast. Boats between six and eight metres recorded the fastest growth, rising 19 per cent over five years.

Private Beach Access: The Ultimate Luxury Premium

Among all prestige property features, private beach access delivers one of the most substantial price uplifts. These tightly held homes recorded a 71 per cent value increasse in Q3 2025 compared with inland counterparts, up from 44 per cent in 2017.

The report attributes this surge to scarcity, heightened demand during the pandemic and the lasting appeal of privacy and seclusion.

Harbour Homes Still Command the Highest Premiums

Harbour frontage remains Australia’s most valuable waterfront category, delivering a 125 per cent increase over non-waterfront homes.

This is largely driven by Sydney Harbour’s deep waters, natural beauty and globally recognised backdrop. Coastal homes recorded a 93 per cent uplift, while riverfront residences achieved 74 per cent. Canal-front homes held steady at around 40 per cent.

Strong Outlook for 2026 and Beyond

The outlook for premium waterfront homes remains exceptionally strong. With limited supply, sustained buyer demand and a national shift toward lifestyle-led decision-making, absolute waterfront properties are expected to continue outperforming the broader prestige market.

As the report concludes, waterfront homes are not just coveted lifestyle properties; they are “enduring legacy investments” that combine prestige, privacy and long-term financial security.