Is 2025 the Right Time to Invest in Property? A Strategic Outlook for Australian Investors

By Mary Nebotakis, B. Eco, Dip. Financial Services, Managing Director, Natloans

As we enter 2025, many Australians are asking the same question: is now the right time to invest in property? The answer, as always, depends on timing, research, and strategy — but there are compelling indicators that suggest this year could offer significant opportunities for smart, well-prepared buyers.

Why Understanding Your Borrowing Power Matters

Before stepping into the property market, understanding your borrowing capacity is crucial. This isn’t just about how much the bank will lend you — it’s about how much you should borrow, based on your unique financial position, goals, and appetite for risk.

At Natloans, we help clients assess their borrowing power through detailed analysis, incorporating factors like:

Current income and expenses
Investment objectives
Risk tolerance
Future financial goals

Using advanced calculators and personalised guidance, we ensure our clients are empowered with the knowledge and strategy they need to make confident decisions.

Key Property Market Trends Heading into 2025

The property market in 2024 was marked by sharp contrasts and shifting momentum. As we move into 2025, several forces continue to shape the landscape for investors.

1. Interest Rates

Since 2022, the Reserve Bank of Australia (RBA) has implemented multiple rate hikes to curb inflation. While higher interest rates can challenge borrowers, they also cool overheated markets — creating windows of opportunity for buyers with strong strategies and flexible finance.

2. Population Growth

Immigration-driven population growth is boosting demand for housing, particularly in capital cities. With infrastructure under pressure and more people competing for places to live, rental markets remain tight — a clear advantage for property investors.

3. Rental Vacancy Rates

According to SQM Research, vacancy rates remain at historic lows in most cities:

City	Vacancy Rate
Melbourne	2.2%
Sydney	2.1%
Brisbane	1.2%
Adelaide	0.8%
Perth	0.7%

Lower vacancy means higher competition for rental properties — and correspondently higher rent.

4. Housing Supply Shortages

Despite strong demand, new housing supply remains limited. Builders face rising costs, supply chain delays, and planning constraints — all of which reduce new stock coming to market. For existing homeowners and investors, this imbalance drives up both prices and rental yields.

Where Are the Opportunities?

Data from CoreLogic shows that while cities like Sydney, Brisbane, Adelaide, and Perth reached record dwelling values by late 2024, others like Melbourne and Hobart saw modest declines — potentially positioning them for future growth.

Spotlight on Melbourne

Melbourne may be one of 2025’s most promising investment destinations. Here’s why:

Population Surge: Now Australia’s largest city again, with over 5.3 million residents.
Market Cycle Timing: Experts suggest Melbourne may be nearing the bottom of its cycle — a critical point for value buyers.
Long-Term Growth Trends: Suburbs such as Darebin have a history of doubling in value multiple times over past decades.
Supply Shortages: Like other capitals, Melbourne is grappling with limited new supply and rising demand.

With the right timing and strategy, Melbourne may present significant upside potential for investors with a long-term view.

Average Weekly Rental Costs by City (2024 Data)

City	Avg. Weekly Rent
Sydney	$775
Melbourne	$580
Brisbane	$625
Adelaide	$600
Perth	$660
Canberra	$680
Hobart	$550

Source: ABS, Domain Research

These rental figures, paired with low vacancy rates, show why residential property continues to be a compelling asset class.

Tips for Property Investment Success in 2025

Focus on Fundamentals
Look for areas with strong infrastructure, employment hubs, and population growth.
Do Your Research
Data-backed decisions are far more reliable than emotional or speculative buys.
Get the Right Advice
Partner with a finance expert who understands investment property and can tailor a solution to your situation.