Australian Residential Figures Q2 2025

Key Findings:

• Australia’s residential markets continue to gain momentum in 2025, with improved buyer capacity and sentiment following interest rate cuts. Sydney and Melbourne have both improved following a slow start to the year. Brisbane, Perth, and Adelaide continue to grow, albeit at a slower pace.
• Unit approvals rose nearly 30% to June compared to the same time last year. However, rolling annual unit completions to March remain almost 20% below the decade average. Capacity constraints, including labour shortages and financing challenges, are preventing approvals from translating into completed dwellings.
• Rents remain at record highs, although the rate of growth has eased. This moderation follows the sharp increases seen in 2022/2023 and likely reflects a natural pause after a period of rapid escalation.
• This view is supported by persistently tight market conditions, with national the national vacancy rate of 1.3% as of June still trending near a historic low. CBRE expects the current slowdown to be short-lived, forecasting average annual rent growth of 4% through to 2030.