Image: Devon Mackay on Unsplash
The pandemic sparked one of the most dramatic property booms in Australia's history. Interest rates plummeted, regional migration surged, and FOMO-fuelled bidding wars became the norm.
But in 2025, the mood has changed. The headlines may no longer shout "record-breaking growth," but that doesn't mean the market has crashed. Instead, we're seeing a shift, from boom to balance.
We take a closer look at what's really happening in the post-pandemic property market, what's driving the changes, and how buyers and sellers can adapt.
The Market Isn't Crashing – It's Maturing
After two years of intense growth (2020–2022), 2023 brought higher interest rates and cautious consumer sentiment. But rather than collapsing, the market responded with resilience.
Now in 2025, property price growth is more subdued but stable, particularly in metro areas and well-located lifestyle regions. According to CoreLogic, house prices across Australia rose modestly in early 2025, with Brisbane, Adelaide, and Perth still showing positive momentum.
In short:
- The days of 20%+ annual gains are behind us.
- But we're not heading for a downturn, just a healthier, more sustainable trajectory.
What's Driving This New Phase of the Market?
Several factors are influencing Australia's "normalisation" phase:
Interest Rates
Rising interest rates have changed borrowing capacity across the board. Buyers are more selective, and vendors must price accordingly. However, the RBA's pause in rate hikes has restored a measure of confidence.
Tight Housing Supply
Even with tempered demand, the lack of new listings in many areas has kept prices competitive. Homeowners on low fixed-rate loans are delaying sales, contributing to the "lock-in effect."
Population Growth Resurgence
International migration is rebounding, placing pressure on housing, particularly in capital cities. This is supporting rental price increases and long-term investor confidence.
Government Incentives and First-Home Buyers
Ongoing grants and shared equity schemes are encouraging new market entrants, especially in outer metro and regional growth corridors.
The Sentiment Shift: Buyers and Sellers Are Thinking Differently
Buyers Are More Strategic
Where buyers once rushed in, now they're more considered. Many are looking beyond the headlines and focusing on long-term value, growth potential, and liveability. Suburbs with access to schools, transport and community amenities are standing out.
Sellers Must Be Market-Smart
Today's sellers need to lean on pricing accuracy, presentation, and marketing. With buyers more selective, homes that tick the boxes and are well-staged are still achieving strong results.
Investors Are Returning
As rents surge and vacancy rates tighten, investors are re-entering the market, particularly in units, townhouses, and dual-income dwellings.
What This Means for You
Whether you're buying, selling or investing, the post-pandemic market calls for a more informed, measured approach.
- For buyers, it's a chance to purchase without the chaos, especially in markets where competition has cooled.
- For sellers, low stock levels mean that a well-prepared home can still command excellent interest.
- For investors, the fundamentals remain strong, especially in undersupplied areas with rising rental demand.
The Boom May Be Over, But Opportunity Isn't
The market may no longer be booming, but balance brings its own advantages. A slower, steadier real estate environment allows for smarter decisions, better outcomes, and long-term success.
If you understand the new rhythm of the market, 2025 could still be your year.
Thinking of making your next move in today's evolving market?
Connect with your local Century 21 agent for strategic insights, up-to-date valuations, and real-time support to help you buy or sell with confidence.