Australia’s property market has entered a decisive new phase in 2025. With interest rates on the move, housing affordability at breaking point, and investor demand rebounding, the landscape is shifting fast. For investors looking to build resilient portfolios, understanding the current dynamics and future opportunities is more important than ever.

IFP Advisory are a member of Property Investment Professionals of Australia (PIPA) which qualifies us as Qualified Property Investment Advisors. In this article, we unpack key insights from the latest edition of their publication “PIPA Adviser”, drawing from exclusive research, expert commentary, and boots-on-the-ground experience from leading professionals.

Capital Cities on the Move: Brisbane Leads the Pack

One of the most striking developments of 2025 is Brisbane overtaking Melbourne as Australia’s second-most expensive capital city. According to Cotality (formerly CoreLogic), Brisbane’s median house price has surged past $1 million, cementing its position as a market powerhouse. This rise has been fuelled by a rare combination of:

• Tight supply
• Strong net interstate migration
• Increased investor confidence post interest rate cuts
• Infrastructure development ahead of the 2032 Olympics

The unit market in Brisbane has also become red hot, with values up nearly 12% year-on-year. First-home buyers and value-driven investors are increasingly targeting the sub-$700,000 bracket in inner-ring suburbs, creating fierce competition and driving up demand.

National Snapshot: A Tale of Two Trends

Across Australia, two dominant trends are playing out:

Market Recovery: With the Reserve Bank cutting rates in February and May, most cities are showing signs of a strategic recovery. A-grade properties are in high demand in Sydney, Melbourne’s outer suburbs are bouncing back, and regional markets like Geelong and Dubbo are offering compelling yields and long-term growth potential.

Supply Crunch: Despite growing demand, new housing supply has fallen dramatically short. The national completion rate is around 175,000 dwellings per year, yet migration-led demand requires 240,000+ annually. That leaves an annual shortfall of 65,000 homes and a total deficit of over 200,000 dwellings since 2021.

This structural gap is pushing up prices, reducing rental availability, and deepening the wealth divide between homeowners and those still trying to get on the ladder.

The Pipeline Problem: Why We Can’t Build Fast Enough

PIPA’s research reveals alarming facts about Australia’s housing pipeline:

Build costs have tripled since 2000, reaching ~$2,400 per square metre

Labour shortages and regulatory delays are stalling projects nationwide

Even high-growth areas like Geelong, Moreton Bay, and Fremantle are facing three months or less of housing inventory—well below balanced market benchmarks

The long-term implications are serious. Unless state and federal governments find ways to fast-track planning approvals, reduce construction costs, and incentivise development, housing supply will remain deeply constrained.

What Does $1 Million Buy in 2025?

Once considered a luxury price tag, $1 million is now the new normal. Nationally, 34.4% of homes are valued over $1 million—up from just 9.7% a decade ago. In Sydney, that figure climbs to over 64%. Even in Brisbane, 40% of homes now cross the million-dollar threshold.

Here’s what you get for $1M in various cities:

Sydney: Possibly a small 2–3 bed unit in a mid-tier suburb

Brisbane: A freestanding home in an inner-to-middle ring suburb

Adelaide/Perth: A high-quality family home close to the CBD or coast

These shifts reflect Australia’s increasing wealth, but also its deepening housing inequality. For many first-home buyers, the dream of owning a detached home in a major city is slipping further out of reach.

Back to Basics: The Timeless Power of Human Connection in Business

Technology is transforming real estate, but Mark Carter, keynote speaker at the upcoming 2025 PIPA National Conference, argues that “old-school” principles still drive the most meaningful success in property services. His five tips include:

• Deep client engagement – Know your client before the transaction begins
• Authentic personalisation – Real human touches, not just CRM automation
• Storytelling – Sell the lifestyle, not just the property
• Humility – Showcase the whole team, not just your personal brand
• Lifelong learning – Success demands ongoing growth and curiosity

A GST Deal Dividing the Nation

The PIPA Adviser also explores broader economic policy—specifically the controversial 2018 GST redistribution deal that heavily favours WA. Despite being the wealthiest state, WA now receives a disproportionately high share of GST revenue, backed by a “no-worse-off” guarantee for other states that’s expected to cost the federal government nearly $60 billion by 2030.

Calls are mounting for a return to true fiscal equity between states. But until major reforms are enacted, budget deficits and inter-state tensions will likely grow.

Looking Ahead: What Property Investors Should Watch in 2025–26

Here are the big takeaways for strategic investors:

✅ Brisbane, Perth, and Adelaide are the best-positioned capital cities for continued growth

✅ Well-located units and townhouses will see rising demand as affordability tightens

✅ Regional centres with infrastructure pipelines offer long-term opportunity

✅ Commercial property and family portfolio management are becoming hot growth segments for high-net-worth individuals

✅ Watch for policy changes, especially around housing supply, planning reform, and taxation

Final Thought: Ethics and Education Matter More Than Ever

In an overheated, fast-moving market, investors must work with professionals who uphold integrity and transparency. PIPA encourages Australians to verify their advisers through the Qualified Property Investment Adviser (QPIA®) framework, ensuring guidance that is ethical, informed, and in the client’s best interest.

For further insights on property investment, avoiding common pitfalls and staying informed about market conditions. reach out to John Tsoulos or Frank Pennisi at IFP Advisory on (08) 8423 6176. Your investment success depends on making informed, strategic decisions.

IFP Advisory is an Accredited ASPIRE Property Advisor Network advisor and all professionals are Qualified Property Investment Advisors (QPIA). Property investing is about purchasing a property that aligns with your goals and investment strategy. You should never be sold an investment. Know your numbers! If you invest wisely and strategically, the Australian residential property market can be a rewarding venture.