Why 2025 Is a Crucial Year for Property Investment
With Australia’s property market in flux and interest rate decisions still hanging in the air, 2025 could be a make-or-break year for investors. While many wait on the sidelines for rate cuts or market signals, savvy buyers are already eyeing suburbs with high demand, tight vacancy rates, and strong long-term fundamentals.
I’ve been investing in real estate for over 11 years now, and every year, predictions come out—some come true, some don’t. But one thing is consistent: demand outstrips supply, and in the long run, asset prices rise because of currency debasement. So let’s block out the noise and look at where the real opportunities lie.
The Golden Trio: Perth, Brisbane & Adelaide Still Lead
In 2025, three cities consistently appear across every expert list: Perth, Brisbane, and Adelaide.
Why?
- Population growth is strong
- Vacancy rates remain low
- Affordability still exists (for now)
In fact, Perth is projected to lead the market with 14–19% growth in some forecasts. I’ve said for months now that Perth is most likely going to have the most momentum over the next 12 months. If you’re already holding property there, you’re loving life right now.
Brisbane isn’t far behind either, especially areas like Moreton Bay, Ipswich, and Logan, which are experiencing strong infrastructure investment. Brisbane has the second highest 5-year growth rate of 83.5%, only trailing Adelaide.
Adelaide, while facing some warnings of investor saturation, still holds momentum in affordable pockets and is supported by solid rental yields.
“You need to look at smaller capital cities and regional hubs… that’s why you see something like Sunshine Coast go from 500–600k all the way up to 900k and past a million most likely.”
Sunshine Coast, Gold Coast & The Rise of the Golden Arc
One of the most exciting property investment trends for 2025 is the emergence of the Golden Arc—a term used to describe the powerhouse region spanning from Gold Coast to Brisbane to Sunshine Coast.
These three regions have overtaken Melbourne in terms of median price growth, lifestyle demand, and long-term potential.
- Sunshine Coast and Gold Coast have seen 76% price growth in 5 years
- Gold Coast’s median house price hit $1.18 million
- Both coasts are drawing professionals, retirees, and remote workers
This trifecta offers strong fundamentals, tight rental markets, and major infrastructure spending in the lead-up to the 2032 Olympics.
Best Performing Suburbs to Watch in 2025
Here’s a breakdown of some of the best places to buy investment property in 2025 based on current data, demand, and investor behaviour:
🟢 Mount Gambier, SA
- Rental yields above 5%
- Strong local economy (health, trades, education)
- Low entry prices ($450k–$600k)
- Community engagement driving long-term growth
“Regional areas don’t grow? That was the old way of investing. The data now tells a different story.”
🔵 City of Wyndham, VIC
- Rents rising 4–4.8%
- Diverse economy & rapid infrastructure upgrades
- Price range: $550k–$850k
- Watch out for oversupply in fringe suburbs
Investors are targeting more established suburbs within Wyndham to avoid the risks of new stock and high supply in outer estates. Proximity to public transport and schools is key.
🟣 Swan, WA (Perth)
- High rental demand & solid yields (4.5–5.2%)
- Population growth pushing prices
- Affordable by capital city standards
Located within greater Perth, Swan offers the kind of balance between yield, growth potential, and entry price that’s hard to ignore in 2025.
🟠 Moreton Bay, QLD
- Strong growth corridor between Brisbane and the coast
- Rental yields: 4–4.5%
- Heavy infrastructure spend
- Risks include new high-density supply
This one’s a classic “buy early” zone. While yields are compressing slightly due to capital growth, the fundamentals remain strong.
What About Sydney and Melbourne?
Both Sydney and Melbourne are expected to remain flat or decline modestly in early 2025. But that doesn’t mean they’re off the table.
- Sydney offers strategic value in R2 and R3 zoned corner lots, particularly with upcoming planning reforms
- Melbourne shows opportunities in low-demand but well-located areas like Sunshine, Melton West, and Narre Warren
“I don’t see a situation where we see a 20–25% price drop… but we could see some 5–7% corrections in oversupplied or investor-heavy areas.”
The New Frontier: Regional Million-Dollar Markets
Ten years ago, owning a million-dollar home in a regional area sounded far-fetched. Today, 20 regional locations are in the seven-figure club—and more are on track to join in 2025.
- Sunshine Coast Hinterland
- Newcastle
- Lake Macquarie East
- Bunbury
- Townsville
These areas combine lifestyle appeal, local job hubs, and long-term demographic shifts. Many are outperforming capital city “blue-chip” zones.
“I would go on to say that Sunshine Coast has outperformed many parts of Sydney… that’s why you need to dig deeper into the data.”
The Strategy That Works in 2025
It’s easy to get distracted by headlines and “top suburb” lists. But real investing requires:
✅ Knowing your risk tolerance
✅ Having an emergency buffer
✅ Understanding timing and cycles
✅ Acting on logic, not hype
“The markets will rise because it’s the debasement of currency that it’s denominated in… in simple terms, the dollar goes down, prices go up for assets.”
Even the best places to buy property in 2025 carry risk. But with the right mindset and data, you can position yourself to grow—sustainably.
Where Should You Invest?
If you’re asking where the best place to buy investment property is, the answer depends on your strategy.
Want growth? Look at Perth, Brisbane, or the Sunshine Coast.
Looking for yield? Consider Mount Gambier, Swan, or regional Queensland.
Prefer long-term rezoning or development? Parts of Sydney and Melbourne offer smart tactical buys.
Whatever your path, don’t just follow the herd. Use the data. Understand the local economy. Get on the ground if you can.
And remember: investing in property is a long game. 2025 isn’t just another year—it’s a pivotal moment for those paying attention.
