Autumn is a time of change, with trees shedding their leaves and the property market adjusting to the recent interest rate fall in February. The seasonal shift also represents a time when many of us transform our homes into cosy spaces for the cooler days and nights ahead or plot renovations or moves for the coming year. So, settle in with a cuppa and read on for our overview of what to expect from the property market this autumn and beyond.
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Leaves are falling, and so are interest rates
With the much-anticipated rate cut in February and subsequent fall in interest rates (for the first time since 2022), some moderate relief has been felt for homeowners and investors, and glimmers of hope shine for the year ahead. Lower interest rates reduce monthly mortgage repayments, making homeownership more accessible and allowing more people to refinance existing loans with banks competing for new customers. This recent interest rate cut is likely to stabilise the housing market, creating and improving opportunities for both buyers and sellers. Renters will also see a flow-on effect from reduced interest rates, with a more balanced market, increased availability, and potentially more affordable options in desirable areas and leverage for more desirable terms.
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Current price movements
National dwelling values remained relatively steady as we started this year, and nationally, house prices are projected to rise by around 3% annually, slowing slightly from the 5% growth we saw in 2024. Despite a slight recent quarterly dip (0.2% in national median house prices), we remain optimistic as house prices have risen in 22 of the past 24 months and remain nearly 7% higher than the previous year (ending January 2025).
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The supply and demand factor
Rates aside, the Australian property market is expected to experience moderate price growth across the autumn months (March to May). The key factors contributing to this are strong, sustained population growth – with Australia’s annual population growth some of the highest in the developed world – and slow construction rates, which are struggling to keep pace with demand. Perth, Adelaide, and Brisbane are predicted to lead the charge with higher growth rates than other cities.
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Seasonal shifts in home design
As autumn arrives in Australia, our home styling shifts to embrace warmth, comfort and cosy indoor spaces. Earthy tones like terracotta, rust, and deep greens take centre stage, complemented by layered textiles – knitted throws, plush cushions – and warm lighting to enhance the ambience. Outdoor spaces adapt for year-round use with fireplaces, heating solutions, and cosy throws, and we continue to bring our connection to the outdoors in with nature-inspired elements like indoor plants, botanical prints and rattan furniture.
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The rebuilding of a village
While it may not be a village in the traditional sense, homes with granny flats are becoming increasingly desirable as family dynamics change and home buyers look for creative solutions to enter the property market. In South Australia alone, where searches increased by 114% in 2024 (as new regulations allowing rentals to non-family members came into play), many buyers are discovering the financial and lifestyle benefits of properties with secondary dwellings. Above and beyond the practical benefits, CoreLogic figures estimate that a granny flat could add up to 32% to the value of an existing home.
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Luxury markets go mega
The demand for luxury properties remains hot – as seen recently in the Toorak mansion sale, which smashed the previous national price record by a whopping $20 million (with its $150 million sale price). This sector is feeling the pressures of demand outstripping supply, with the number of ultra-high-net-worth individuals calling Australia home rising and a limited number of trophy homes available.
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Tiny homes are still taking a top spot
Definitely not new news, but still very relevant, tiny homes continue to offer home buyers an affordable, flexible and sustainable alternative to traditional housing. With many tiny home providers offering rent-to-buy options, they don’t come with the enormous financial burden of conventional homes, and often, they’re viewed as a sensible stepping stone into the property market. The global tiny home market is projected to grow at around 5% annually until 2027, meaning that this trend will be bedded in for years to come.
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The rise of ‘barkitecture’
With almost 70% of households in Australia owning a pet, family pets are increasingly influencing home design. So much so that the phrase ‘barkitecture’ – coined to account for a growing trend of new builds and renovations that include integrated pet-friendly features and amenities – has become a very real property trend. From opulent £15,000 dog showers to more modest and functional pet-friendly additions, barkitecture has been predominantly fuelled by social media trends and the global desire for millennials choosing to raise pets over kids.
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Accessible homes in hot demand
Australia’s population is getting older faster, which will continue to affect the housing market dramatically. Based on current trends, by 2026, more than 22% of Australians will be over 65, a huge 16% increase on 2020 figures. As this demographic grows, many older Australian home buyers are looking to downsize and seek out homes that are low maintenance, functional, and accommodate future mobility changes – with larger doors, handrails, ramps and accessible appliances.
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Sustainability moves from trend to necessity
Sustainability is becoming a core focus in Australia’s property market, driven by consumer demand and environmental concerns. Homes with energy-efficient features like solar panels, rainwater harvesting systems, energy-efficient appliances and superior insulation increase property appeal for buyers and renters due to long-term cost savings and reduced environmental impact. Government policies, such as the National Housing Accord, support this trend by promoting sustainable housing, as do new laws in the rental sector, like those in Victoria, which mandate improvements to quality, safety and sustainability.
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Neighbours, everybody needs good neighbours!
As the cooler months kick in, we spend more time in and around the home – which is when good neighbours can make all the difference. And believe it or not, when it comes time to sell, your neighbours can make or break a deal. Friendly, welcoming neighbours contribute a strong sense of community, and well-kept homes and gardens with shared amenities go a long way in attracting buyers. Ultimately, the neighbourhood vibe and the lifestyle of the surrounding community can be just as important as the house itself when it comes to securing a sale – making good neighbours a worthy investment!
A season of opportunity – looking beyond finances
As autumn leaves fall along with interest rates, the national property market is set for moderate growth and a more positive upturn as the year progresses. Beyond purely financial factors, however, there are many changes – from sustainability and accessibility to family dynamics and even barkitecture – that are shaping our lifestyles, our connection to our homes, and to our communities. If your current home is falling short of your expectations, contact your local First National Real Estate for expert guidance on finding a community where you feel your happiest.
DISCLAIMER
The following advice is of a general nature only and intended as a broad guide. The advice should not be regarded as legal, financial, or real estate advice. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial, or real estate decisions. Click here for full Terms of Use.