Spring 2025 Property Market Update
Real Property Buyers is an expert NSW buyers agency whose key objective is to help and educate people to make good property decisions in this challenging real estate market.
Michael Salvartsis is the founder and principal of Real Property Buyers and we share with you, his Spring property update.
In February 2025, the Reserve Bank of Australia (RBA) reduced the Official Interest Rate by 25 basis points for the first time since 2020. Two subsequent and additional, RBA 25 basis point cuts in May & August 2025 has resulted in the current rate being 3.6% (below its peak of 4.35% in January 2025).
This has been welcome news for many homeowners and mortgage holders who have been managing both higher borrowing costs and cost of living expenses. As inflation data has finally moved within the RBA's Target Band this has resulted in a shift in market sentiment with most economists now predicting further interest rate reductions towards the end of 2025.
Sydney and Melbourne All Dwelling Values continued their upward trend in August 2025 posting a 0.8% and 0.3% rise respectively. According to Cotality (Sept 2025), both these major capital cities reported an annual change in All Dwelling Values of 2.1% & 1.4% respectively. It would appear the Sydney and Melbourne markets have found a consistent growth rhythm. Tim Lawless from Cotality notes on the national trend, which also coincides with Sydney’s performance, “The monthly growth trend looks to have found a sweet spot, the rolling quarterly change does show a clear upswing since February’s rate cut”.
The most significant story emerging from the Sydney Market is the staggering gap / divergence emerging between Median House Values ($1,521,611) and Median Unit Values ($873,838) as compared to other capital cities. Whilst both property types are growing, houses are leading the charge by a significant and growing margin. Sydney House Values surged 4.2% in the first 8 months of 2025, whilst Unit Values rose by 0.8% over the same period. Simplistically, Sydney’s Median House is now worth approx $650,000 more than a Median Unit. This dynamic presents both challenges and opportunities.
Supply levels continue to remain a constant and significant challenge in light of increased migration levels and despite government initiatives at both a federal and state level aimed to boost available housing stock. Cotality states home sales are up by 2% and tracking almost 4% above the previous five year average. However at the same time, advertised supply levels remains 20% below the average for this time of the year. This mismatch in supply levels and demand is placing upwards pressure on housing values. We expect supply levels to increase over the Spring period so buyers will have a little more choice, but demand will continue to outstrip supply.
The expanded Home Guarantee Scheme (brought forward to 1st Oct’ 25) is another factor set to place additional pressure on housing demand and prices up to $1,500,000. This will be popular for first home buyers as they will only require a 5% rather than 10% Deposit (with no mortgage insurance required) so they will have the ability to enter the market much sooner. However this scheme does not address the underlying factors of limited new stock levels and the current unaffordability of property.
Although the outlook for the housing market is fundamentally strong and looks increasingly positive some headwinds such as affordability remain, that will likely keep the rate of growth in check, that is a modest, sustainable growth rather than a speculative boom.
What we are Observing On The Ground
A More Positive Consumer Sentiment
COMO (Compromise or Miss Out) is the New FOMO - Particularly in relation to Home Buyers
More Cashed Up Downsizers
Increased First Home Buyer (Enquiry and Activity)
Strong Sydney Property Investor Enquiry and Activity up to $1.5Mil
More Astute Investors monitoring actual & proposed rezoning corridors
Increased Interstate Investor Enquiry - Up to $800K
Increased No. of Buyers at Open Homes
Quicker Sales and Purchases
Days on Market are Steadily Decreasing
Increased Number of Off Market Purchases
High Sydney Sept' 25 Auction Clearance Rates - 78% & 74.7% (first two weeks)
Larger % of Properties Selling Prior to Auction
Buyer Agent / Selling Agent Relationships are Increasingly Important in Negotiations
Speed & Experience in executing the purchase is critical
Premium Sales Prices achieved for New / Modern ‘Turn Key’ Solution Properties
Some recent examples where Michael has assisted in property purchases are:
Property 1
Renovated Two Storey Three Bed, Two Bath Home on Northern Beaches
Quiet Cul De Sac
"Turn Key" Solution with Tandem Garage on 696m2 Land
Steps to Mona Vale Beach, Village Shops & Bus Services
Purchased (Prior to Auction) for Circa $3Mil
Property 2
Three Bedroom Single Storey Brick Home
Tightly held street and pocket on the Winston Hills Border
Corner Site
Generous 19.2 metre frontage, 607m2 Site Area
Potential Duplex Site (STCA)
Purchased for Investors / Developers whose medium term objective is to redevelop the site
Purchased at Auction for Circa $1.6Mil
Property 3
Renovated Top Floor Two End Unit in the Inner West
Block of 14 Units
180 Degree Water Views over Parramatta River
Exceptional Floor with Double Lock Up Garage
Steps to Local Parks, Village Cafes, Bus Services and Ferry
Purchased at Auction for Investors for Circa $1.3Mil
Subsequently leased for $950per week
If you would like Michael to assist with your next property purchase, please contact him on the details below.
MICHAEL SALVARTSIS
DIRECTOR
M +61 402 897 083
michael@realpropertybuyers.com.au
Tower 2, Level 21/201 Sussex Street, Sydney NSW 2000
Disclaimer:
Information provided by Real Property Buyers is never intended to be relied upon as specific investment advice and is not a substitute for such advice. The team at Real Property Buyers are property buyers – not financial planners, planners, economists, investment advisers, valuers, accountants, or lawyers. Before taking any action or risking any money, you should always check with your own qualified professional advisers.
Bongiorno & Partners also has a working relationship with Westpac, allowing our clients access to unique lending policies. If you would like us to assist with finance for your next purchase, please contact your advisor.
We can assist with an end-to-end service for clients buying investment properties.
1. Check tax effective ownership
2. Review affordability for cash flow
3. Arrange an “Approved in Principle” loan for three months before the property search begins
4. Refer to preferred buyers agent
5. Refer to property lawyers to assist with contract negotiation
6. Communications with bank regarding property purchase from exchange to settlement