10 insights into the investment property market

Each month we pull together 10 insights impacting the investment property market. Read on for this month’s instalment… 

1. Rental growth stalls. Rental price increases across most major capitals either paused or grew at their slowest pace in years during the June 2025 quarter, according to Domain’s Rental Report. The median house rent in combined capital cities held steady at $650 per week — unchanged from both March 2025 and June 2024. Unit rents also remained at $650 per week for the March and June 2025 quarters.

2. Rental affordability pressures remain. Cotality’s Rent Report shows national rents have jumped 42.7% — or $199 per week — over the past five years, which works out to an extra $10,350 per year. Over the same period, the wage price index rose just 15.8%, less than half the pace of rent growth. The share of pre-tax income going towards rent has climbed from about 26% in June 2020 to just under 33% in December 2024.

3. Vacancy Inch Higher. Vacancy rates edged up in June, with the national rate rising 0.1% to 1.3%, according to SQM Research. There were 39,027 residential properties sitting vacant nationwide during the month. Advertised rental supply held steady, with 71,537 national listings – just 0.2% higher than a year ago – according to Rent.com.au.

4. Home prices continue to grow. Nearly half of Australia’s suburbs are hitting record highs for home values, with 44.8% of the 3,722 suburbs analysed reaching a peak at the end of June 2025, according to Cotality’s Housing Chart Pack. Queensland and WA led the rebound, as national housing values climbed 0.6% in June, marking the fifth consecutive month of growth. Hobart was the only region to record a monthly decline, slipping 0.2%. PropTrack’s Home Price Index also showed a 0.4% rise in national home prices for June, setting a fresh record high and reflecting continued momentum across most of the country’s housing markets.

5. Listings slide as asking prices edge higher. Australia’s total residential property listings dropped 8.8% in June to 234,067, according to SQM Research. Fresh listings fell 9.1% over the month, while older stock (180+ days) eased by 7.0%. National asking prices crept up 0.5% in the four weeks to 1 July, with the median house price at $1,004,449 and units at $582,812. Cotality noted that just 32,970 new properties were listed for sale nationally in the four weeks to 29 June – the lowest June flow of fresh stock since 2020.

6. Buyer demand gains momentum. Cotality estimated 531,457 properties changed hands across FY25 – a 2.7% lift on FY24’s 517,597 sales. Properties are, however, taking slightly longer to sell, with the median time on market rising to 35 days in the June 2025 quarter, compared to 34 days in March and 29 days a year earlier. Ray White Group reported the national median time to sell a house holding steady at 31 days, though regional variations remain significant.

7. Building activity on the rise – ABS data revealed total dwelling approvals jumped 11.9% in June to 17,076 (seasonally adjusted). Private sector house approvals slipped 2% to 9,142, while approvals for other dwellings surged 33.1% to 7,594. In the March 2025 quarter, dwelling commencements also climbed 11.7% to 47,645. New private sector house commencements rose 6.3% to 27,923, and other residential commencements jumped 21.8% to 18,161.

8. Interest rates are steady. In a move that surprised many, including major banks, the RBA kept the official interest rate at 3.85% at its 8 July Board meeting. Industry leaders told The Real Estate Conversation, SPI, and Elite Agent that a potential August rate cut could lift home values, but with limits. Realestate.com.au also reported some lenders had already trimmed variable interest rates ahead of the August meeting.

9 On the radar for investors. The PropTrack Origin Renter Reality Report revealed that 35% of renters are willing to pay more for homes with smart energy features. Data from Budget Pet Products showed that regional landlords tend to be more pet-friendly than those in the city. Research by Cotality found that families are paying up to $1.3 million more for homes within high-demand public school catchments in Sydney and Melbourne. Meanwhile, a report by Washington Brown and Hotspotting highlighted that property prices in some affordable suburbs have delivered investors gains of up to $170,000 in just one year.

10. Need to know. Queensland’s new property disclosure laws will take effect from 1 August. In WA, the deadline for the short-stay incentive has been extended. The NSW Government has submitted new legislation to Parliament aimed at cracking down on misleading property ads and limiting the personal information collected during the rental process. In Victoria, Consumer Affairs’ Taskforce has targeted auction underquoting in Melbourne’s north, while rental properties in the city’s south-east have been inspected for compliance with minimum standards. WA has also expanded rent bidding inspections into regional areas.