Australia’s Premium Property Market: Why 2025 Is the Year to Act

At Targa Property Advocates, we’re constantly analysing market data to help our clients make strategic, informed decisions in their search for Melbourne’s most prestigious homes. The latest Commonwealth Bank property outlook for 2025–2026 reveals a market that is set for a pivotal shift — one that presents a rare window of opportunity for discerning buyers who understand 2025 Australian Property Market trends.

The Market Is About to Turn

The CBA forecasts a modest national house price growth of around 4% by the end of 2025, following a slight softening in the first half of the year. By mid-2026, a stronger upswing is expected, with national prices projected to rise around 7%, and Melbourne and Brisbane poised to outperform with 8–9% growth.

Price growth set to grow significantly with buyer window being 2025

This means the early part of 2025 will be characterised by:

• Flat or slightly lower prices due to affordability pressures and increased listings.

• Fewer competing buyers, giving you greater negotiating power.

As interest rate cuts begin to filter through from the Reserve Bank — potentially lowering the cash rate from 4.35% to 3.35% by the end of 2025 — buyer confidence will return, and competition will heat up.

Why This Matters for Prestige Buyers

Premium and prestige properties are often insulated from the broader market’s fluctuations, but even in this tier, timing can be critical. In H1 2025, the soft market presents a rare chance to secure exceptional assets before the anticipated recovery takes hold. By H2 2025 and into 2026, the momentum is likely to swing back to sellers, with renewed demand driven by:

• Ongoing supply shortages in high-end suburbs.

• Returning migration adding upward pressure to Melbourne’s luxury market.

• Lower interest rates making premium purchases more attractive.

Targa’s Strategic Edge

Our role as a discreet, globally connected buyer’s advocate means we can identify and secure the right property before the broader market catches on. Whether it’s a Toorak estate, a Brighton beachfront, or a CBD penthouse, our network and negotiation expertise position you to act decisively while others are still weighing their options.

We recommend premium buyers consider moving early in 2025 to leverage market softness, then capitalise on capital gains as the recovery takes hold.

In Summary:

• H1 2025: Opportunity to buy well in a soft market.

• H2 2025–2026: Prices set to rise sharply, led by Melbourne’s prestige sector.

• Now: The perfect time to prepare your strategy with Targa Property Advocates.

If you’re ready to secure Melbourne’s finest properties before the next market wave, we’ll make it happen — with precision, discretion, and an unwavering commitment to your brief.