Report points to a cooling national market, with state-by-state conditions splitting sharply
Australia's property markets are entering a recalibration phase, with conditions diverging markedly across states in the wake of the federal Budget, according to the latest National Market Update from the Property Investment Professionals of Australia (PIPA).
According to PIPA chair Cate Bakos, New South Wales has moved into a clear downswing, with Sydney auction clearance rates falling below 50% and premium suburbs recording discounts of up to 10%.
In Victoria, Bakos noted that investor activity is showing a new pattern. "Victoria is seeing investors pivot from established Melbourne houses toward regional centres like Bendigo and Ballarat, where yields are stronger," she said. "Boutique apartments are also regaining favour, offering rental returns above 5% as borrowing capacity contracts."
Queensland remains active but fragmented. "Greater Brisbane's affordability constraints are pushing demand into units, while regional hubs such as Rockhampton and Toowoomba stand out with yields above 5% as well as major infrastructure drivers," she said.
"Western Australia continues to outperform nationally, with Perth values up significantly annually. However, momentum is slowing – listings have risen year-on-year and days on market have doubled."
Bakos (pictured right) also pointed out that South Australia's extended period of growth has softened since the federal Budget, with clearance rates declining and less experienced developers facing exposure. "Still, low unemployment and strong fundamentals suggest a cyclical slowdown rather than a crash," she added.
Tasmania has seen steady growth, particularly in Launceston and the North West, where affordability and yields have attracted investors. Hobart has remained resilient, though buyers are increasingly price sensitive.
In the ACT, Bakos said the market has broken out of a prolonged stalemate, supported by stamp duty removal for first-home buyers and significant subdivision reforms.
"Overall, the national market is cooling, but fundamentals such as infrastructure, affordability, and rental demand continue to underpin long-term resilience," she said. "The cycle is shifting from momentum-driven growth to selective and strategy-led opportunities."
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