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🏠 2025 Trends Shaping Real Estate
What to expect in the Australian property landscape...
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OPINION
Trends to watch in ‘25
The Australian property market is set for another year of change, with economic policy, cultural shifts, and evolving buyer behaviour shaping the landscape.
With Sydney arguably the most closely watched property market in Australia, movements often gather nation-wide attention. REINSW President and BresicWhitney CEO, Thomas McGlynn predicts a stronger link between real estate, politics, and the economy in 2025, with affordability pressures fuelling multi-generational financial support and growing demand for sustainability and wellness features in homes.
A closer relationship between property, politics, and the economy
Thomas believes interest rates will perhaps be the most influential economic force in the market this year. While some markets have remained resilient in the face of this, homeowners are under immense pressure.
“It’s not clear yet when interest rates will begin to pare back (some economists are tipping a cut as early as next month following a continued downtrend in recent inflation data), but we expect that when it’s announced, there’ll be an almost immediate lift in buyer optimism and engagement.”
Multi-generational money: the bank of Mum, Dad… and Grandparents
Expect to see it evolve over the course of this year from what has previously been a transaction between parents and their adult children, to a gift or loan from grandparents and even extended members of family. Results from a recent UBS report from UBS demonstrated this too,” Thomas said. He added that financial assistance is now extending beyond entry-level properties, reaching higher price brackets.
A new frontier for sustainability and wellness
Sustainability and wellness are no longer niche priorities, they are now essential in real estate. “Expect to see the evolution of sustainability and wellness this year in two main ways: The first being an increase in the rate at which it influences the design, build or renovation of new and existing homes, and secondly, how important it is to buyers.”
Thomas pointed to growing demand for features such as electric vehicle chargers, energy-efficient appliances, smart home technology, and even portable saunas. “It’s possible that sustainability and wellness in homes will play a role in driving premium prices over 2025 too.”
ICYMI, yesterday we reported on the power of community engagement
TOGETHER WITH MRI
Reshaping real estate - but NOT how you think
Disruptors once promised to replace real estate agents, but they got it wrong. Real estate isn’t just about transactions; it’s emotional, complex, and requires expertise.
Instead of cutting out agents, AI is now enhancing their work, automating routine tasks like drafting emails, scanning property listings, and analysing market data to improve efficiency.
MRI Software’s Mark Cohen explains that the real transformation lies in AI giving agents more time to focus on what matters, which is building relationships, negotiating deals, and guiding clients through life’s biggest financial decisions.
Read more about why previous disruptors failed here.
SMART SNIPPETS
CPI decline raises hopes for interest rate cuts
The latest CPI data shows inflation at 2.4% annually, its lowest since March 2021 and within the RBA’s target range, prompting optimism for a rate cut. REIA’s Leanne Pilkington highlighted the financial relief borrowers could expect, while Domain’s Nicola Powell urged a cautious approach to avoid reigniting inflation.
Rental market eases as supply increases and growth slows
Australia's red-hot rental market is showing signs of cooling, with national rent growth dropping to 6.9% in 2024 compared to nearly 20% in 2023. The national median rent sits at $620 per week, while property availability has improved with new listings up 4.6%. Experts say while the pressure is easing, the market remains tighter than pre-pandemic levels.
Luxe London rentals thrive amid global demand
Luxury and short-term rentals in Prime Central London saw a 4.7% rise in transaction value in 2024, driven by affluent American, European, and Chinese tenants. Chelsea emerged as a top performer with a 21% increase in deals, while high-end short lets reached record prices, including a staggering £45,000 ($85,500 AUD) per week for a Notting Hill property.
CELEBRITY HOMES
Iconic mansion once owned by Saudi prince sells for $263 million
The Holme, a 40-bedroom mansion in Regent’s Park once owned by the Saudi royal family, has been sold for an eye-watering £139 million (AUD $263 million). Initially listed for £250 million (AUD $473 million), the buyer’s identity remains undisclosed.
MOVERS + SHAKERS
Sarah McCullum thrives with Area Specialist
Ms McCullum has built a strong client base across Melbourne’s growing corridor, focusing on clear communication and local expertise in Blind Bay. After years in major franchises, she joined Area Specialist, seeing her business grow 40% in a year. More here.
COMPANY RE redefines real estate for agents
COMPANY RE is ditching the traditional franchise model, offering agents high commissions, no fees, and passive income opportunities. Co-founders Talei Watene, Bruce Cook, and Marcus Buskey say agents need to think like entrepreneurs to thrive in today's market. More here.
Success doesn’t rest on weekends!
Get the latest on top agent and agency moves every Sunday with our weekly roundup in Movers & Shakers. Subscribe now.
SOUND WAVES
Storytelling: the secret weapon in real estate success
Storytelling isn’t just powerful - it’s profitable. A study called Significant Objects proved it when a 25-cent egg whisk sold for $30, all because of a great story. In real estate, the same rule applies: highlight a home’s history, paint a vision of future memories, or turn long commutes into the villain. The stronger the story, the higher the offer.
Dive straight into the listen below or the deeper dive here.
Read the article from ChatterBuzz Media here
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Wishing you a productive day
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