If you are refinancing, purchasing a new home, or investing, here is the latest on the property market and what it means for your borrowing options.
2025 snapshot: growth is back
After slowing late last year, the housing market is showing renewed strength. CoreLogic data shows national dwelling values rose 0.6% in July 2025, the sixth month in a row of growth. Over the year, values were up 3.7%, putting the median home at around $844,000 (ABC).
Growth is broad based across the capitals, though some cities are stronger than others:
| City | Monthly Growth % (July 2025) |
| Darwin | 2.2 |
| Perth | 0.9 |
| Adelaide | 0.7 |
| Brisbane | 0.7 |
| Sydney | 0.6 |
| Melbourne | 0.4 |
| Hobart | 0.1 |
On the supply side, new listings in June were down 11.7% year on year, highlighting the shortage of stock coming to market (CoreLogic).
Rents are also rising again. Capital city rents increased 3.0% in the year to July, up from 2.7% in June (Cotality).
What’s driving the rebound?
- Lower interest rates are improving borrowing power and lifting confidence.
- Tight supply is forcing more competition for available properties.
- Broad-based growth across most capitals shows the recovery is not limited to one or two hotspots.
Overall, prices are edging higher at a steady pace rather than surging, which suggests a more balanced phase of growth.
What this means for borrowing
Here are a few things to keep in mind if you are weighing up your options:
- Borrowing power should improve gradually as the RBA makes cuts to the Cash Rate, but do not expect a big jump.
- Equity use is becoming more realistic again, with higher values giving owners more equity to access.
- Timing matters. In a market growing 0.6% each month, waiting too long can mean paying more for your next property.
- Flexibility is key. A smart loan structure with offsets, redraws and possibly fixed/variable splits could help you adapt if rates shift again.
- Plan for the downside. Always test and plan for how you would manage your finances if rate cuts were delayed or costs rise.
Risks to keep in mind
- Affordability remains stretched and will keep some buyers sidelined.
- Melbourne and Hobart are lagging, showing the market is not moving evenly.
- Limited supply in some areas may keep pushing prices higher.
- Policy settings on migration, tax or lending rules could quickly change the outlook.
- Rising rents may feed into inflation and influence Reserve Bank decisions – though this appears less pronounced than 12-24 months ago.
Practical steps for late 2025 and early 2026
If you are thinking about your next move, a few simple steps will help you stay ahead:
- Get an up-to-date valuation to know the true value of your property.
- Check your borrowing capacity so you understand what you can afford before making any decisions.
- Review your loan structure to make sure it still fits your circumstances and goals.
- Plan ahead and get finance sorted early if you are looking to buy, refinance, or invest.
At AP Finance, we specialise in helping clients with all of the above. If you are considering your next move, we would love to help, so get in touch when you are ready.
The bottom line
Australia’s housing market is constantly evolving. Prices are rising steadily, supply remains tight, and confidence is returning on the back of rate cuts. For borrowers, this is a moment to reassess and make sure your finances are ready for any opportunities that may come up.
At AP Finance, we help make sense of the shifting property landscape so you can make confident choices, whether you are refinancing, upgrading, or investing.
Written by Andrew Whelan, General Manager – AP Group
AP Group are the leading pharmacy experts in Australia and specialise in helping first time buyers find the right pharmacy and secure the finance to support their purchase.
We connect existing owners with over 5000 ready and eager investors via our cutting-edge online Data Room. Our Data Room keeps confidential listing data secure and allows buyers to make informed decisions on each of our pharmacies for sale.
AP Group have built connections with all the major banks and a host of smaller lenders, ensuring that first time pharmacy buyers find a better deal.
About the Author:
When Andrew Whelan is not out pedalling his bike or looking after his two marvellous kids, he’s pedalling through pharmacy finance and strategy development.
Having been with AP Group since the beginning, Andrew has more than a decade experience in pharmacy and is an asset to the sales and finance division. He’s a numbers wizard, people person and sustainability champion — leading AP Group to achieve official Carbon Neutral Certification with Climate Active.
Before AP Group, Andrew spent more than a decade in the telecommunications and media industry including 7 years at Telstra in a variety of senior management roles and 3 years in the United Kingdom managing the commercial function for the British Sky Broadcasting — a time where it was the fastest growing broadband provider in the UK.
So it’s no surprise that he is well equipped to help customers with some of the biggest decisions they will ever make — buying a home or investing in a pharmacy — and helping to show them what’s truly possible.