Australia’s Housing Market in 2025: A Tale of Two Coasts
Australia’s housing market in 2025 is characterised by contrasting dynamics between the East and West coasts. While the East Coast grapples with affordability challenges, Western Australia (WA) stands out as a beacon of growth and opportunity.
East Coast: Affordability Under Pressure
In major East Coast cities like Sydney and Melbourne, housing affordability remains a pressing issue. Despite government initiatives, rental prices continue to rise, often outpacing wage growth. For instance, in Bondi Junction, a two-bedroom apartment listed under the affordable housing scheme was still deemed unaffordable by many, highlighting the disconnect between policy intentions and market realities.
Western Australia: Growth Amidst Challenges
Conversely, WA’s housing market is experiencing significant growth. Perth’s median house price reached $745,000 by the end of 2024, marking a 24.2% increase from the previous year. This upward trend is expected to continue in 2025, with prices projected to grow by up to 10%.
Several factors contribute to this growth:
- Population Growth: WA’s population increased by 2.8% in 2023, driving demand for housing.
- Economic Stability: The state’s strong mining sector provides economic resilience, attracting both interstate and international migrants.
- Supply Constraints: A shortage of available properties has intensified competition, pushing prices higher.
Looking Ahead
As we move further into 2025, the housing market in Australia presents both challenges and opportunities. While the East Coast faces affordability pressures, WA’s market offers potential for growth, particularly for investors and first-time homebuyers. However, prospective buyers should remain cautious, considering factors like interest rates and economic conditions that could influence market dynamics.
In conclusion, Australia’s housing market in 2025 is a tale of two coasts, each with its unique set of circumstances. Understanding these regional differences is crucial for making informed decisions in the current property landscape.
