KPMG Residential Property Market Outlook

The RBA delivered two rate cuts in early 2025, earlier than expected, lifting national house price forecasts to 4.9% and supporting a turnaround from last year’s subdued market.

With house prices rising faster than incomes, buyers are increasingly turning to units, townhouses, and apartments as more accessible options.

Annual rental inflation eased to 4.5% in June 2025, down from 8.5% in December 2023, supported by increased Commonwealth Rent Assistance and rising vacancy rates.

KPMG forecasts 160,000 new dwellings annually over the next two years – 30% below the national target of 224,000 homes needed to meet the National Housing Accord.