I recently read the Property Sentiment Report for Q2, 2025 from Australian Property Investor’s editor Craig Francis. It highlighted a surge in market confidence, shifting investor preferences, and the key factors shaping property decisions across Australia — from interest rates and housing supply to emerging hotspots and rental yields.

Here are my thoughts on the really informative report…

The new era of property investing: What 2025 means for aspiring investors

The Australian property market in 2025 is rewriting the rulebook for investors. After several years of rising interest rates, stubborn inflation, and tight credit conditions, we’re now seeing a market that is both full of opportunity and lined with caution tape. For those wanting to start their property investment journey, this is a defining moment — and success will belong to those who read the signs clearly.

From rate cuts to rising confidence

The Reserve Bank’s shift toward lower interest rates has breathed life back into the market, but buyers aren’t rushing in blindly. According to recent surveys, many investors believe the real game-changer is not just rate cuts but how they intersect with housing supply, affordability, and rental demand.

Despite economic uncertainties, 82% of surveyed investors expect property prices to keep climbing over the next 12 months. Regional areas, once overlooked, are now firmly on the radar thanks to growth rates that have outpaced capital cities.

The Queensland question: Still the favourite?

Queensland continues to dominate investor sentiment, often cited as offering the best growth prospects. Yet the mood is shifting. The Property Sentiment Report revealed a growing number of owners cashing in on Queensland properties, with the proportion of sellers rising by 8 percentage points.

Does this mean Queensland’s golden run is over? Not necessarily. It reflects a market maturing — investors are now more strategic, seeking value beyond just location, considering factors like infrastructure growth, rental yields, and emerging regional hubs.

Houses over units: The investor preference

Another clear trend? Houses are winning over units by a significant margin. A year ago, the gap was small; now, detached homes are the preferred choice for 42% of investors, with units falling to just 24%

Why? Two reasons stand out:

1. Capital growth potential – Land value continues to drive long-term wealth creation.
2. Tenant demand – Families seeking space and lifestyle upgrades prefer houses, boosting rental stability.

Rental yields and the tenant factor

With rental stress easing slightly but vacancy rates remaining tight, investors are focusing on sustainable yields. Most consider 4.6–5.5% the “sweet spot” for returns. Interestingly, landlords today are less likely to chase maximum rent at the expense of losing good tenants, a shift from the early 2020s when yield often trumped occupancy stability.

Barriers and strategies for new investors

For newcomers, the challenges remain familiar: life circumstances, credit access, and deposit hurdles continue to delay many first-time buyers. However, strategies are evolving.

• Retirement-focused investing is now the top goal for many, with 24% citing it as their primary reason for buying property.

• Others are diversifying portfolios, exploring dual-income properties, or leveraging fractional investment platforms to enter the market with less capital.

The road ahead

So, what does this all mean for someone looking to start in 2025?

• Do your homework – Understanding local supply, population growth, and infrastructure plans is crucial.
• Think long-term – Capital growth takes time; chasing quick wins rarely pays off.
• Balance risk and return – Rental yields matter, but so does tenant quality and property maintenance costs.
• Stay finance-ready – With lending conditions tightening, getting pre-approval and keeping your credit file clean will be key.

Final thoughts

The Australian property market in 2025 is not the wild boom of the pandemic years nor the flat market some feared in 2023. It’s a landscape where smart investors — even first-timers — can thrive by combining market data with strategic thinking.

For those ready to make the leap, the coming year offers a rare mix of affordability tailwinds, rental demand, and long-term growth opportunities. The question isn’t whether to invest — it’s how to do it wisely.

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.