As is often said in investing, the best time to buy was yesterday, and the second-best time to invest is right now. How does that stack up to the soaring prices of properties in Australia in 2025? Well, the answer is always going to have to be an “it depends,” and trying to time the market is perhaps not the best approach.
If you’re saving up for an initial payment on a home, you’re probably keenly aware of just how much is needed for your preferred city or neighbourhood, the size of the home, and various other factors. It’s expensive pretty much everywhere, there’s no denying that. What can help guide your decision of when to buy, however, are a few helpful tips:
Property Prices at Record Highs
According to ABC News, property prices in several key markets are expected to hit record highs once again in the second half of 2025. Melbourne, for example, is forecasted to grow at 6% to a median detached home price of $1.11 million.
Several experts have stated that trying to break into the market at such a time could be one of the greatest challenges yet. For many younger Australian first-time homebuyers, these prices are rising at incredibly high rates and delaying their chances of home ownership.
Having said that, for those with adequate income to enter the market, it could be a golden opportunity. Dual occupancy homes are trendy and can likely appreciate more than many old-fashioned single-family detached homes, and although nobody has a crystal ball to see into the future, it very well may be the case that these homes continue to appreciate in the coming years and decades.
Interest Rates Down
One important takeaway from the record-high property prices in Australia in 2025 is that the central bank has outlined plans to ease cash rates in the latter half of 2025 and in the coming years. As of September 2025, the Reserve Bank of Australia has an official cash rate target of 3.60%.
This means that money is easier to borrow and, in the hope of stimulating the economy, might help first-time homebuyers secure a reasonable mortgage plan for their preferred property.
Time in the Market Beats Timing the Market
It’s another old saying, but it’s generally the case that being in the market beats trying to time it. The best time to buy a dual occupancy home would have been a decade ago, when prices were still quite reasonable, or if we’re going to play by that rule, why not get a time machine and travel back a century? That’s impossible to do, so if you haven’t had the opportunity (or didn’t take it) to buy at least a few years ago, it doesn’t mean your hopes need to be shot down.
Buying a dual occupancy home now, or at least sooner rather than later, gives you access to all of the benefits that a dual occupancy home brings. Historically, even in times of great difficulty, property prices remained relatively stable and continually increased over time. In current times, it may still be wise to invest in times of record highs, as prices may yet increase further in the coming years.
According to a Cotality report from March 2025, around 94.9% of homes sold across Australia (86,000 total) delivered a profit to sellers. Nominal gains have slowed down a little, but it remains the case that home sales are quite lucrative. This shows that there is quite a strong demand from buyers despite the high asking prices.
Trevor Homes
Invest in dual occupancy homes with Trevor Homes.
