Property Market Update: Q2 2025

OVERVIEW

Australia’s residential property market displayed notable resilience throughout Q2 2025, weathering the challenges of high interest rates and affordability strain. Migration—both domestic and international—has continued to support demand across metropolitan centres and emerging regional hubs. Although some inner-city markets are softening, fresh opportunities are emerging in house-and-land corridors and medium-density redevelopment zones.

This report delivers:

• Median dwelling prices and yields

• Rental trends by region

• Planning and infrastructure updates

• Growth corridor highlights and local momentum Commentary based on Bridge Projects Group's developer and agent network. The analysis aligns with Herron Todd White’s Property Clock, cross-referenced with Bridge’s proprietary pipeline visibility across builder and buyer activity.

NEW SOUTH WALES (NSW)

Greater Sydney Median Price: $1.21M | Rent: $700/w | Yield: 3.0% Market Phase: Early Recovery

Growth Corridors: Marsden Park, Austral, Box Hill Infill Development: Blacktown, Campbelltown, Seven Hills• Infrastructure Drivers: Sydney Metro West, Western Sydney Airport, precinct rezonings Western Sydney remains an anchor for new supply, especially as affordability constraints push demand further westward. Infrastructure-backed land releases continue to draw both owner-occupiers and investors.

Regional NSW Market Phase: Mixed

Growth Corridors: Dubbo, Tamworth, Coffs Harbour Fringe Townhouse Focus: Orange, Wagga Wagga, Goulburn• Infrastructure Activity: Freight and road upgrades, hospital precincts While price growth has steadied, key inland centres are seeing stable demand buoyed by infrastructure and lifestyle migration.

VICTORIA (VIC)

Greater Melbourne Median Price: $930K | Rent: $600/w | Yield: 3.3% Market Phase: Softening from Peak

Growth Corridors: Werribee, Mickleham, Donnybrook, Clyde North, Lyndhurst Townhouse Pockets: Scoresby, Glenroy, Ringwood East Infrastructure: Suburban Rail Loop, Victorian Housing Statement, zoning accelerators Market Commentary: Despite subdued sales in inner markets, outer fringe and infill precincts remain highly active, driven by first-home incentives and construction activity.

Regional VIC Market Phase: Stabilising

Growth Corridors: Armstrong Creek, Bannockburn, outskirts of Geelong Townhouse Activity: Shepparton West, Ballarat fringe• Planning Update: Regional housing approvals and rail funding Continued pressure from Melbourne’s pricing is directing volume into Geelong, Ballarat and Shepparton. Infrastructure upgrades support long-term growth.

QUEENSLAND (QLD)

Greater Brisbane Median Price: $780K | Rent: $580/w | Yield: 3.9% Market Phase: Expansion

Growth Corridors: Flagstone, Ripley Valley, Caboolture, Morayfield Townhouse Pockets: Griffin, Logan Central, Woodridge Infrastructure Highlights: Olympic venues, SEQ City Deal, rail links Brisbane’s west and south corridors are absorbing consistent demand. Investor yield play remains dominant across outer suburbs with townhouse approvals rising.

Regional QLD Market Phase: Rising

Growth Corridors: Reippliy, Tin Can Bay, Mackay Fringe, Crows Nest Infill Areas: Cairns North, Townsville South• Infrastructure Update: Regional SEQ grants, North QLD transport corridors Infrastructure and affordability are reigniting demand in Queensland’s regional towns. Coastal hubs and lifestyle inland towns remain on investor watchlists.

WESTERN AUSTRALIA (WA)

Greater Perth Median Price: $745K | Rent: $580/w | Yield: 4.6% Market Phase: Rising

Growth Corridors: Hilbert, Byford, Lakelands, Baldivis Townhouse Areas: Spearwood, Armadale, Hamilton Hill Infrastructure: METRONET expansions, East Wanneroo Structure Plan Perth’s outer growth corridors remain buoyant as affordability lures new buyers. Meanwhile, inner southern pockets are increasingly targeted for medium-density development.

Regional WA Market Phase: Rising

Growth Corridors: Mandjoogoordap, Geraldton surrounds Infill Activity: Kalgoorlie fringe, Geraldton West End Infrastructure Pipeline: Port upgrades, regional investment funding, FIFO hubs• Market Yield-led interest dominates WA’s regional centres, with FIFO-linked towns attracting east coast investors.

SOUTH AUSTRALIA (SA)

Adelaide Metro Median Price: $837K | Rent: $550/w | Yield: 4.0% Market Phase: Rising

Growth Corridors: Munno Para, Andrews Farm, Mount Barker Infill Pockets: Salisbury, Paralowie Infrastructure Projects: Gawler rail electrification, Tonsley Innovation expansion Adelaide suburbs continue to draw strong demand with affordable H&L offerings and consistent infrastructure investment.

Regional SA Market Phase: Mixed

Growth Corridors: Murray Bridge, Whyalla Townhouse Markets: Port Lincoln surrounds, Mount Gambier Infrastructure Notes: Road duplication, industrial renewal in Whyalla Murray Bridge is benefiting from its position as an affordable growth satellite. Whyalla's industrial recovery is strengthening buyer confidence.

TASMANIA (TAS)

Greater Hobart Median Price: $680K | Rent: $520/w | Yield: 4.0% Market Phase: Early Recovery

Growth Corridors: Old Beach, Brighton Townhouse Growth: Glenorchy, Moonah Planning Summary: Local rezonings and urban renewal precincts Demand remains stable with limited new supply. Activity is spreading into northern and western suburbs with land availability.

Regional TAS Market Phase: Moderating

Growth Corridors: Legana, Latrobe Infill Markets: Rocherlea, Invermay, South Launceston Infrastructure: Northern suburbs city deal, highway duplication Strategic affordability and Launceston spill-over continue to support market depth across Northern Tasmanian towns.

AUSTRALIAN CAPITAL TERRITORY (ACT)

Median Price: $920K | Rent: $650/w | Yield: 3.7%Market Phase: Stabilising

Growth Corridors: Gungahlin, Molonglo Valley

Townhouse Nodes: Belconnen, Woden Infrastructure: Light rail expansion, zoning flexibility inner north Strong rental demand and public service employment are helping Canberra maintain a balanced market amid affordability constraints.

NORTHERN TERRITORY (NT)

Median Price: $585K | Rent: $580/w | Yield: 5.2%Market Phase: Mixed

Growth Corridors: Palmerston, Zuccoli

Infill Development: Nightcliff, Coconut Grove

Infrastructure Update: Defence spending, Darwin City Deal, NAIF projects

Tight supply and strong rental yields are underpinning investor confidence in Darwin and surrounds. Defence and resource-linked demand remain pivotal.

Bridge Projects Group works with over 1,000 selling partners across Australia to source the investment grade properties. Please feel free to register for our mailing list or reach out to Larissa directly at 0401 561 685 or larissa@bridgeprojectsgroup.com.