Your Besser Guide to the Real Estate Market May 2025
Well, that’s it for another three years. With Labor securing re-election, the status quo remains, and for property owners, buyers, and landlords, that means one very important thing: certainty.
The Australian Financial Review summed it up perfectly, “Home buyers, sellers rush back after election proves certainty.” And at Besser+Co., we’ve seen the same firsthand. Many of our clients had been waiting for the election result, confident that buyer sentiment would lift once the political outlook was settled.
Next up is the Reserve Bank of Australia’s meeting on the 19th and 20th of May, an event that could further shape buyer behaviour. Again, the AFR headlines are telling: “Auction clearances bounce as buyers sense rate cut,” with Melbourne leading the charge. As Louis Christopher of SQM Research put it, “I’m anticipating that volumes are going to bounce back this coming week and so will auction clearance rates.”
And that’s not all. The Australian today reported: “Eager first home buyers to push property prices higher.” Why? Because starting January 1, 2026, first home buyers will be able to enter the market with just a 5% deposit, thanks to the re-elected Albanese government—potentially bringing around 80,000 new buyers nationwide.
Naturally, that raises a question: Will property owners hold off selling in the second half of 2025 in hopes of riding that first home buyer wave in 2026? Possibly. But there’s a catch, if everyone sells at the same time, stock levels will rise, competition among vendors will increase, and buyers will have more choices. More choice means more pressure on prices.
That’s why, in our view at Besser+Co., if you’re considering selling, do it before the rush. Take advantage of the certainty the election has brought and the anticipated interest rate cuts to achieve the best possible outcome.
We’re already seeing signs of this shift. One standout campaign right now is 7/86 Cromwell Road, South Yarra, over 80 buyers through the door, 36 contracts issued, and a mid-campaign price increase. It’s been years since we’ve seen activity like this, and it feels like a sign of what’s to come.
On the rental front, April showed a slightly slower pace than March:
– Enquiries: 1,381
– Inspections: 155
– Tenants Inspected: 538
– Applications Received: 113
– Properties Leased: 23
While not yet a trend, we often see rental demand ease slightly as more tenants start to consider buying their first home. Although rental prices are still trending upward, we’re no longer seeing the rapid increases of 2024.
Thinking of selling? Click one of link below to book a time to chat. Let’s make a plan to get you ahead of the pack.
