Autumn is a time of change, with trees shedding their leaves and the property market adjusting to therecent interest ratefall in February. The seasonal shift also represents a time when many of ustransform our homes into cosy spaces for the cooler days and nights ahead or plot renovations ormoves for the coming year. So, settle in with a cuppa and read on for our overviewof what to expectfrom the property market this autumn and beyond.
Leaves are falling, and so are interest rates
With the much-anticipated rate cut in February and subsequent fall in interest rates (for the firsttime since 2022), some moderate relief has been felt for homeowners and investors, and glimmersof hope shine for the year ahead. Lower interest rates reduce monthly mortgage repayments,making homeownership more accessible and allowing more people to refinance existing loans withbanks competing for new customers. This recent interest rate cut is likely to stabilise the housingmarket, creating and improvingopportunities for both buyers and sellers. Renters will also see aflow-on effect from reduced interest rates, with a more balanced market, increased availability, andpotentially more affordable options in desirable areas andleverage for more desirable terms.
Current price movements
National dwellingvalues remainedrelatively steady as we started this year, and nationally, houseprices are projected to rise by around 3% annually, slowing slightly from the 5% growth we saw in2024. Despite a slight recent quarterly dip (0.2% in national median house prices), we remainoptimistic as house prices haverisen in 22 of the past 24 monthsand remain nearly 7% higherthan the previous year (ending January 2025).
The supply and demand factor
Rates aside, the Australian property market is expected to experience moderate price growthacross the autumn months (March to May). The key factors contributing to this are strong,sustained population growth–with Australia's annual population growthsome of the highest in thedeveloped world–and slow construction rates, which are struggling to keep pace with demand.Perth, Adelaide, and Brisbaneare predicted to lead the charge with higher growth rates than othercities.
Seasonal shifts in home design
As autumn arrives in Australia, ourhome styling shifts to embrace warmth, comfortand cosy indoor spaces. Earthy tones like terracotta, rust, and deep greens take centre stage, complemented bylayered textiles–knitted throws, plush cushions–and warm lighting to enhance the ambience.Outdoor spaces adapt for year-round use with fireplaces, heating solutions, and cosy throws, and we continue tobring our connection to the outdoors inwith nature-inspired elements like indoorplants, botanical prints and rattan furniture.
The rebuilding of a village
While it may not be a village in the traditional sense, homes with granny flats are becomingincreasingly desirable as family dynamics change and home buyers look for creative solutions toenter the property market. InSouth Australiaalone, where searches increased by 114% in 2024(as new regulations allowing rentals to non-family members came into play), many buyers arediscovering the financial and lifestyle benefits of properties with secondary dwellings. Above and beyond the practical benefits,CoreLogic figures estimatethat a granny flat could add up to 32% tothe value of an existing home.
Luxury markets go mega
The demand for luxury properties remains hot–as seen recently in theToorak mansionsale,which smashed the previous national price record by a whopping $20 million (with its $150 millionsale price). This sector is feeling the pressures of demand outstripping supply, with the number ofultra-high-net-worth individuals calling Australia home risingand a limited number of trophy homesavailable.
Tiny homes are still taking a top spot
Definitely not new news, but still very relevant, tiny homes continue to offer home buyers anaffordable, flexible and sustainable alternative to traditional housing. With many tiny homeproviders offering rent-to-buy options, they don’t come with the enormous financial burden ofconventional homes, and often, they’re viewed as a sensible stepping stone into the propertymarket. The global tiny home market is projected to growat around 5% annuallyuntil 2027,meaning that this trend will be bedded in for years to come.
The rise of ‘barkitecture'
With almost 70% of households in Australia owning apet, family pets are increasingly influencing home design. So much so that the phrase ‘barkitecture’–coined to account for a growing trend of new builds and renovations that include integrated pet-friendly features and amenities–hasbecome a very realproperty trend. Fromopulent £15,000 dog showerstomore modest andfunctional pet-friendly additions, barkitecture has been predominantly fuelled by social mediatrends and the global desire formillennials choosing to raise pets over kids.
Accessible homes in hot demand
Australia’s population is getting older faster, which willcontinue to affect the housing marketdramatically. Based on current trends,by 2026, more than 22% of Australians will be over 65, ahuge 16% increase on 2020 figures. As this demographic grows, many older Australian homebuyers arelooking to downsize and seek out homes that are low maintenance, functional and accomodate future mobility changes - with larger doors, handrails, ramps and accessible applicances
Sustainability moves from trend to necessity
Sustainability is becoming a core focus in Australia’s property market, driven by consumer demandand environmental concerns.Homes with energy-efficient features like solar panels, rainwaterharvesting systems, energy-efficient appliances and superior insulation increase property appealfor buyers and renters due to long-term cost savings and reduced environmental impact.Government policies, such as the National Housing Accord, support this trend by promoting sustainable housing, as do new laws in the rental sector,like those in Victoria, which mandateimprovements to quality, safety and sustainability.
Foreign investment forges on
Foreign investment in Australian real estate increasedby nearly 30% in 2024, with buyers spending almost $5 billionon our shores. This trend is expected to continue into 2025, with potentially lower interest rates boosting investment appeal, particularly in regions with predicted growth, such as Perth and South-East Queensland. Stricter enforcement of current investmentregulations is being enforced, though, so staying informed is crucial.
Neighbours, everybody needs good neighbours!
As the cooler months kickin, we spend more time in and around the home–which is when goodneighbours can make all the difference. And believe it or not, when it comes time to sell,yourneighbours can make or break a deal. Friendly, welcoming neighbours contribute a strong sense of community, and well-kept homes and gardens with shared amenities go a long way in attractingbuyers. Ultimately, the neighbourhood vibe andthe lifestyle of the surrounding community can bejust as important as the house itself when it comes to securing a sale–making good neighbours aworthy investment!
A season of opportunity–looking beyond finances
As autumn leaves fall along with interest rates, the national property market is set for moderate growthand a more positive upturn as the year progresses. Beyond purely financial factors, however, there aremany changes–from sustainability and accessibility to family dynamics and even barkitecture–thatare shaping our lifestyles, our connection to our homes, and to our communities. If your current homeis falling short of your expectations, contact your local First National Real Estate for expert guidanceon finding a community where you feel your happiest.