Outlook for the Australian property market w/ Peter Esho

We recently sat down to review the Australian property market performance for the first quarter this year and provide our outlook for the remainder of the year. We did this before the Trump tariff announcement, leaving that aside for the time being.

Back home, interest rates are turning. Inflation is back in the Reserve Bank’s target range, and the pressure to keep rates high is fading. That’s the key story so far in 2025. Government rebates, stabilising energy prices, and easing construction costs have all helped.

The RBA now has room to move, and rate cuts are likely. That shift is already flowing into the Australian property market. After a soft patch in 2024, prices have started to lift—led by Sydney, especially Western Sydney.

Investors are no longer stuck on the sidelines, they are starting to come back into the market. With inflation under control and interest rates likely to drop, real estate is back in focus. It won’t be a frenzy, but the momentum is shifting.

The smart money is moving early. Cautiously. Quietly. Confidently.

Peter Esho is an economist and Founder of Esho Capital. He has 20 years of experience in investments and markets.