The Australian property market is quietly heating up again — but this time, it’s not about boom-and-bust. It's steady, calculated, and strategic growth. And for investors? That’s the sweet spot.
June 2025 Recap: A Market on the Move
Property values across Australia rose 0.6% in June, making it five months in a row of growth. It’s not a headline-grabbing number, but here’s what most people miss: steady growth = strategic buying conditions.
We’ve come out of a flat patch, and thanks to interest rate cuts starting back in Feb, things have started to turn. And while this isn’t another boom we’re okay with that. Because smart, long-term investing has nothing to do with chasing hype and everything to do with buying quality assets in the right markets.
At Baker Advocates, this is exactly the kind of environment we thrive in. We help our clients take action while others sit on the sidelines, overwhelmed by media noise or trying to time the market perfectly (spoiler: no one ever does).
Where’s the Growth Happening?
Across the board, we’re seeing movement. But not all markets are created equal.
✔️ Darwin saw the biggest quarterly jump at 4.9%, finally pushing past its mining boom peak from 2014
✔️ Brisbane and Perth continue to lead the pack in the longer-term growth game —up 81% and 75% over the past 5 years
✔️ Melbourne and Sydney are recovering from previous dips smart investors are circling for value buys
✔️ Regional markets still have legs, but capital cities are gaining momentum again
Our clients don’t guess — we use data to identify investment-grade locations with the fundamentals in place: low supply, strong demand, proven growth, solid rental yield, and the lifestyle factors Aussies actually want.
What About Rents?
You’ve probably heard that rental growth is slowing. That’s true but it’s not the red flag some people think it is.
Nationally, rents rose 1.3% over the June quarter, and annual growth is sitting at 3.4%. That’s a big drop from the frenzy of 2021, but it’s also more sustainable and predictable which is a good thing for long-term investors.
Vacancy rates are still tight (hello, Sydney at 1.8%), and the market is settling into a rhythm. That gives you more confidence in cash flow, especially when we help you buy in markets with strong rental demand and limited supply.
Capital City Snapshots – What Investors Should Know
Here’s the short version of what’s happening on the ground:
🔹 Brisbane: One of our favourite plays right now. Units up 10.9% over the year, driven by affordability pressures and tight supply. High growth, high yield, high impact.
🔹 Perth: Back on a roll — $54K in value gains over the financial year. Affordability + demand = recipe for success.
🔹 Melbourne: Slowly climbing back, still sitting 3.9% below its 2022 peak a buying opportunity for those who missed out last time.
🔹 Sydney: Home values up 1.9% in the first half of 2025. Units outperforming houses. We’re seeing some great entry points in the right suburbs.
🔹 Darwin, Hobart & Canberra: Niche markets with strong rental yields and unique growth drivers. Good opportunities for the right investor profile.
Tailwinds & Headwinds: What’s Coming Next
There’s a mix of factors in play some will help fuel growth, others might hold it back.
Positives for the market:
✅ Interest rates expected to keep dropping potentially back into the 3s or high 2s
✅ Confidence is creeping back in
✅ Housing supply is still way too low
Negatives for the market :
⚠️ Affordability is still tough in some markets
⚠️ Population growth has cooled a bit
⚠️ Global risks (yep, they’re still a thing)
So what does that mean for you? Opportunities are there — but you’ve got to be strategic.
How This All Ties Back to You
If you’re looking to get started in property investing or thinking about growing your portfolio this kind of market is ideal. Prices aren’t flying out of reach, interest rates are easing, and competition is lower than in a boom.
The problem is most people get stuck. They don’t know where to buy, what to avoid, or how to actually take the first step without stuffing it up.
That’s exactly what we help with.
At Baker Advocates, we handle the entire process for you:
📍 Find growth-focused markets using our proven Foundation8 Blueprint
💰 Identify properties that tick the capital growth AND cash flow boxes
🤝 Negotiate the best deal and handle the due diligence
🏡 Connect you with brokers, conveyancers, and property managers
📈 Set you up with a strategy that aligns with your long-term goals
No stress. No confusion. Just a clear path to building wealth through real estate.
Ready to take action while the rest of the market hesitates?
Source: Cotality’s Monthly Home Value Index. www.cotality.com.au