Market update: Australia’s property landscape shifts slowly but steadily in 2025

How have economic indicators, local and global events, and supply and demand shaped the first half of the 2025 Australian property market In this episode of The Smart Property Investment Show, host Emilie Lauer sits down with Dr Diaswati Mardiasmo, chief economist at PRD, to unpack the network’s latest Australian Economic and Property Update report for the first half of 2025. Key topics include the resilient but cautious economic climate in Australia, the country’s global standing in property development and capital city performance. Diaswati said that while Brisbane and Adelaide drive price growth, Melbourne remains more affordable, and rising construction costs have been affecting new builds in most parts of the country. The duo also discusses the rental market, noting a slight easing in rental inflation and the potential for cash rate cuts in the second half of 2025. Diaswati highlights the impact of the federal election on buyer activity and investor sentiment, especially among first home buyers, due to uncertainty around policies like the Help to Buy scheme.