What does 2025 hold for housing values in your city? The experts weigh in
Factors such as migration levels, rental demand and persistently high interest rates are impacting on some major centres more than others
5 min
Australian house prices are forecast to continue rising in 2025 — but at a slower pace. Supply of homes for sale will remain constrained and potentially higher interest rates hanging around for longer will continue to limit both finance availability and affordability.
Moderating population growth as migration rates normalise is expected to soften demand. However, this will be offset somewhat by rising rents continuing to encourage some people to buy.
In KPMG’s Residential Property Outlook, chief economist Dr Brendan Rynne says: “When the cost of renting is comparable to the cost of buying and owning a similar property, households may opt for home ownership, potentially driving up house prices.”
The research team at Domain notes that more people living alone will continue to put pressure on home values and rents in FY25. COVID and the opportunity to work from home prompted many people to leave shared inner city rental accommodation and set up their own homes in more affordable areas. Meantime, as our population gets older, more people are forced to live alone due to marriage breakdown or the death of a spouse.
Some markets will see superior apartment price gains compared to houses. CBA senior economist Belinda Allen says affordability challenges have “seen drivers of home price growth switch slowly”, as more buyers accept they cannot afford a house. This trend is most notable in mid-tier capital cities like Perth, Brisbane and Adelaide where prices have risen most.
Ms Allen adds: “We are seeing a similar thematic in the rental market; national unit rents are up 22 percent over the past year compared to 16 percent for house rents.”
Here is a snapshot of predictions for property price growth in the period ahead.
Sydney
Domain forecasts 6 to 8 percent growth for house prices, taking the median above $1.7 million by the end of FY25. Domain also tips 4 to 6 percent growth for apartments, which would make Sydney one of the best-performing unit markets of FY25.
In the calendar year of 2025, KPMG’s predictions are 5.3 percent house price growth and 5.6 percent for units. CBA’s predictions are 4 percent growth for Sydney home values overall.
Melbourne
Domain forecasts 0 to 2 percent growth for house prices in what is now “the slowest and most inconsistent recovery in the city’s history”. Domain tips better growth for apartments at 2 to 4 percent. Houses will underperform because of high supply compared to demand, and the introduction of significantly higher land taxes for investors. By the end of FY25, the city will still not have regained its median price losses from the 2022-23 downturn.
In the calendar year of 2025, KPMG’s predictions are 6.5 percent growth for both houses and apartments in Melbourne. CBA’s predictions are 4 percent growth for dwelling values overall. CBA’s Ms Allen says that once investors get used to the taxation changes, they may look to Melbourne for value and greater capital growth potential outside the recent top-performing mid-tier cities.
Brisbane
Domain predicts 6 to 8 percent house price growth in FY25, which may see Brisbane crack the million-dollar median for the first time. Unit prices are tipped to grow by 4 to 6 percent, which would make Brisbane one of the top-performing unit markets of FY25.
In the calendar year of 2025, KPMG’s forecasts are 5.1 percent house price growth and 2.5 percent for units. CBA’s predictions are 7 percent growth for dwelling values overall.
Adelaide
Domain sees 7 to 9 percent growth for house prices in Adelaide, with the city likely to reach a million-dollar median by December 2025. The unit market is forecast to be one of the best in the country with 4 to 6 percent growth in FY25.
In the calendar year of 2025, KPMG’s predictions are 5.9 percent house price growth and 4.6 percent for units. CBA’s predictions are 9 percent growth for dwelling values overall.
Perth
Perth will dominate the capital cities with house price growth of 8 to 10 percent in FY25, according to Domain. Unit prices are forecast to lift by 4 to 5 percent, but even at the top growth rate, the median will still be under a very comparatively affordable $450,000.
In the calendar year of 2025, KPMG’s forecasts are 5.2 percent house price growth and 8 percent for units. CBA’s predictions are 12 percent growth for home values overall.
Canberra
Canberra is only just moving into its recovery now, with house prices likely to see mild growth of 0 to 4 percent in FY25, according to Domain. Unit prices are tipped to increase by 1 to 4 percent. Over the past few years, the ACT Government has encouraged more strata-title development as new land supply runs out amid ongoing population growth, and as residents get older and need more downsizing housing options.
KPMG’s predictions are 6 percent house price growth and 4.1 percent for units in Canberra in the calendar year 2025.
Hobart
KPMG’s forecasts are 5.7 percent house price growth and 5.3 percent for units in Hobart in the calendar year 2025. KPMG said weak economic conditions in Melbourne will directly affect Hobart, with flow-on impacts to property values.
KPMG’s Dr Brendan Rynne said: “Given the interconnected nature of these two markets, the sluggish performance in Melbourne is likely to have a ripple effect on Hobart’s economic prospects.”
Regional Australia
Domain Research says the removal of incentives for migrants to settle in regional areas will impact population growth and housing demand in FY25. Offsetting this will be the construction sector focusing more on city projects amid a severe undersupply nationwide, thereby keeping supply of new homes in regional areas tight. Towns with close proximity to the cities will remain attractive for buyers priced out of metro markets.
Domain forecasts moderate growth for regional Queensland with 2 to 4 percent house price gains and 3 to 4 percent unit price gains. The Gold Coast and Sunshine Coasts should crack new record house prices in FY25, with Domain tipping 3 to 6 percent growth for houses and 3 to 4 percent growth for units on the Gold Coast and 2 to 5 percent growth for houses and 3 to 4 percent growth for apartments on the Sunshine Coast.
Growth will be sluggish in regional NSW with 0 to 3 percent gains for houses and 1 to 3 percent gains for units. Houses prices in regional Victoria may decline in FY25, with forecasts of between a 3 percent fall and 0 percent growth. Domain tips unit prices to lift 1 to 2 percent.
BNW Developments has established a Sydney presence, joining Arada and Sobha Realty among the growing number of UAE developers pursuing Australian buyers and development opportunities.
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رغم التوترات الإقليمية، يواصل سوق العقارات الفاخرة في الإمارات جذب المشاريع الجديدة، مع تصدر الواجهات البحرية المشهد. وتستعد دبي وأبوظبي ورأس الخيمة لإطلاق مجموعة من المشاريع السكنية الفاخرة، بينها مساكن تحمل علامات فندقية عالمية مثل Ritz-Carlton وJanu.
6 min
Long-term optimism remains strong in the United Arab Emirates, even as the war in neighboring Iran hinders home sales and demand for now.
While there have certainly been residential and commercial real estate projects across the U.A.E. that have been paused or delayed due to the turmoil experienced across the region, by and large, new developments continue to be launched.
That’s the case in the luxury residences sector in particular, where a string of starry, big-name projects are putting homes on the market before the close of the year. One trend is that the islands of Dubai, Abu Dhabi and the U.A.E. at large that are taking their turn in the spotlight, as waterfront living continues to be in demand and come at a premium.
For would-be buyers looking for resort-style homes along the shores, there’s an array of upcoming projects to get excited about. Right at the top of the list are hotel branded residences from the likes of Ritz-Carlton and Janu, the sister brand of powerhouse Aman, among five swanky projects selling this season.
The Ritz-Carlton Residences Al Maryah Island, Abu Dhabi
Luxury hotel branded residences are thriving, and the exciting Ritz-Carlton Residences Al Maryah Island development is a great example of why. Residents can expect hotel-style amenities and services from a locale within Abu Dhabi’s thriving waterfront district, with the creature comforts of home built into it.
This project was unveiled at Abu Dhabi Finance Week 2025 and promises to offer The Ritz-Carlton brand’s signature, timeless style and unwavering attention to detail. All units will feature floor-to-ceiling windows with enviable views, while residents will be able to take advantage of a resort-grade, infinity waterfront pool, immersive spa and wellness facilities, and a waterfront promenade with curated outdoor spaces as well as high-end retail and dining venues.
Sales launch in October.
Number of Units: 172
Price Range: Starting at $1.2 million
Developer/Architect: Killa Design and Tara Bernerd, with SAAS Properties.
Home Sizes: One- to four-bedroom residences ranging from 882 square feet to 4,962 square feet, and a five-bedroom, 13,713-square-foot penthouse.
Amenities: Wellness facilities including premium fitness center, massage room, meditation and recovery rooms, cold plunge and indoor pool. There’s also a rooftop pool, co-working lounge, executive golf lounge, and a games room and children play area.
Janu Al Marjan Island, Ras Al Khaimah
Just 50 minutes from Dubai International Airport, Janu Al Marjan Island aims to both feel a world apart from the city, while also offering supreme ease of access. The property has its own private stretch of beach and marina, ideal for superyacht mooring and serving as the scene of a beach club.
The Janu Residences will be positioned next to the Janu hotel, with residents able to take advantage of its many social and wellness spaces, in addition to resident’s-only amenities and services. Meanwhile, the adjacent Wynn Al Marjan Island, the U.A.E.’s first integrated resort, is in direct proximity as well.
Social life by the sea, with discretion and wellness on tap, not to mention a chance to get in early on burgeoning Ras Al Khaimah.
Sales launch in late October.
Number of Units: 73
Price Range: Starting at $2.3 million
Developer/Architect: Jointly developed by Marjan and Wynn Resorts, with architecture by SCDA Architects.
Home Sizes: One- to five-bedroom residences ranging from 2,117 square feet to 18,955 square feet, as well as five Marina Villas and a residential tower penthouse.
Amenities: An active lifestyle comes to the forefront with the Janu Spa and Wellness center and a padel court. Six dining venues and a signature beach club are key features for residents who want it all, right on-site.
Sei Saadiyat, Saadiyat Cultural District, Abu Dhabi
Located in the Saadiyat Cultural District, Sei Saadiyat combines its historic locale with a unique spin rooted in the Japanese concept of stillness and calm, or “Sei.” That foundational principle is what this community will be based on, with a mission to foster wellness and relaxation in all forms, including fitness and social connection.
A total of 778 homes will be spread across six Jacobs-designed buildings. Aldar is also introducing a first in their residential portfolio in the form of their two-bedroom Kanso Lofts at Sei Saadiyat, featuring double-height, open-plan living in loft style spaces including an elevated bedroom.
Phase one sales launched in September.
Number of Units: 778 total (265 involved in this phase one launch)
Price Range: Starting at $800,000
Developer/Architect: Aldar with architecture by Jacobs and interiors by Kettle Collective.
Home Sizes: Residences range from 753 square feet to 2,238 square feet, in a range of floor plans including one- and two-bedroom apartments, three-bedroom Kanso Residences and two-bedroom Kanso lofts.
Amenities: Amenities tie into the brand’s ethos of stillness and calm: expect a Zen garden with serenity pool and outdoor yoga decks, along with numerous indoor and outdoor fitness areas, and hot-and cold-pool experiences.
Amali Canal Residences
Amali Canal Residences is located on Dubai Canal in Al Wasl. The community is suspended above the canal, and brings the presence of water even closer to home with a number of features including private plunge pools in every residence, and a swim-through, indoor-outdoor pool with a signature waterfall facade that would make the posh resorts of the Swiss Alps blush.
There will be no shortage of on-site entertainment and diversions, whether in the form of a private cinema and resident bowling alley, cigar lounge and library, padel and sports courts, a panoramic fitness center. Then there’s The Retreat, a wellness center incorporating spa, sauna, steam, onsen baths, hydrotherapy, and yoga and pilates studios. When it’s time for a bit of work in between the diversions, residents can use an executive boardroom, private studies and co-working lounges.
Sales launch in October.
Number of Units: 211
Price Range: Two bedrooms starting at $3.9 million; three bedrooms starting at $5.4 million; four bedrooms starting at $7.4 million; penthouse pricing on request.
Developer/Architect: Amali Properties in collaboration with AHS Properties, with architecture by Killa Design and interior design by HBA Residential.
Home Sizes: Two- to four-bedroom apartments ranging from 2,880 square feet to 7,800 square feet, in addition to four- and five-bedroom penthouses ranging up to 21,000 square feet.
Amenities: 55,000 square feet of interconnected amenity spaces including myriad lounges, infinity pools with cabanas, children’s waterpark and child care center, padel court and a rooftop secret garden.
Rixos Residences Al Reem Island, Abu Dhabi
The Rixo Residences on Al Reem Island, Abu Dhabi, are designed to match its island environs with the thriving culture and finance dynamics of the city. Panoramic water and skyline views bring both faces to life, in this East & West Properties project.
Residences showcase expansive terraces offering boundless views from within a community centered around three dedicated amenity zones: the Oasis, the Haven and the Gathering. Together, wellness, fitness, social life and relaxation are all available in a number of formats.
Less than half a mile from the coast, and only 10 minutes from downtown Abu Dhabi, Rixos Residences offers generous layouts and amenity-rich public spaces that deliver equally as well for family-friendly living as well as investors.
Sales launched in August.
Number of Units: 386
Price Range: One-bedrooms starting at $570,000, with larger loft units starting at $1.8 million.
Developer/Architect: East & West Property Development under the Ennismore portfolio, with architect Aedas and interiors by HBA Residential.
Home Sizes: One- to two-bedroom apartments as well as three- and four-bedroom lofts, from 954 square feet to 2,941 square feet.
Amenities: Wellness treatment areas as well as Turkish hammam and steam rooms, landscaped walking tracks, padel court, rooftop clubhouse and plunge pool, private cinema, and services including concierge, valet and security.
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