Townsville is tipped to become Australia’s hottest property market in 2025, with home prices forecast to surge up to 30 per cent.
Propertyology’s 2025 Property Market Outlook predicts 11 of the nation’s 25 largest cities will experience boom conditions, defined as annual growth above 8 per cent.
The firm’s head of research Simon Pressley said 20 cities with populations of 100,000 or more were on track for positive growth amid a surge in upgraders and first-home buyers.
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Townsville’s property market is set for a bumper 20025.
But there’s more pain in store for sellers in Sydney and Victoria, with the latter dubbed “Australia’s problem child”.
The Sunshine Coast is forecast to be Australia’ second best performing city, with 12-16 per cent growth likely in 2025.
Adelaide, Brisbane and Perth are also expected to achieve double digit growth.
The report points to more modest increases of 1-3 per cent in Hobart and 3-6 per cent in Darwin, while home prices in Sydney, Melbourne and Canberra are expected to slide.
Propertyology head of research Simon Pressley said Townsville was reaping the benefits of being Australia’s most improved economy over the past five years.
The predicted growth could add $156,000 to the current $520,000 median house price.
Propertyology’s 2025 Property Market Outlook. Source: Propertyology, ABS
“What’s even more impressive is Townsville’s significant recent investment in amenities, lifestyle enhancements and its enormous pipeline of economic development initiatives,” Mr Pressley said.
“There’s nothing like it anywhere else in the country.”
Tight housing supply continues to fuel price growth on the Sunshine Coast, which has gained 57,876 new residents through internal migration over the past five years.
Melbourne, on the other hand, has recorded a net population decline of 82,000 over the same period.
Mr Pressley said despite the national population rising by four million over the past decade, the number of houses for sale had fallen 25 per cent, creating strong conditions in most markets.
However, high listing numbers in Sydney are expected to lead to an up to 5 per cent price drop in 2025.
Propertyology founder Simon Pressley.
“Sydney’s current real estate listing volumes is fast approaching the record-high housing supply which produced an 18 per cent decline in Sydney’s median house price over the two years ending July, 2019,” Propertyology said.
Home upgraders are tipped to become the most active buyers next year, with more first-home buyers expected to enter the market.
Nationally, first-home buyers rose 9 per cent to 117,000 in 2024, with that number forecast to grow to 150,000 if the RBA cuts interest rates.
4 Hale St, Townsville City, is selling in the high $2 millions.
Mr Pressley said 2025 also marked the start of an “investment sweet spot” for many of Australia’s 4.8 million Gen X-ers.
“Most of those households are currently sitting on good equity in their home. But they only have 10 or so years left in the workforce and relatively modest investments,” he said.
“We are expecting record volumes of Gen X-ers to become borderless property investors in the next year or so.”
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