As we kick off 2025, the Australian property market presents a complex landscape of opportunities and challenges.

The Labor government announced that it will introduce a two-year ban on the purchase of established homes by foreign investors, in the hopes of easing pressure on the housing market. In reality, it won’t make any real difference.

This week, CoreLogic Research reports that:

*Sydney property prices increased 0.2% over the last week,  remained flat over the last month and are 1.3% higher than they were 12 months ago.

*Melbourne property prices increased 0.1% over the last week,  fell -0.1% over the last month, and are -3.6% lower compared to 12 months ago.

*Brisbane property prices increased 0.1% over the last week, increased 0.2% over the last month and are 9.7% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.1% over the last month and are now 3.5% higher than they were 12 months ago.

2,820 homes taken to auction across the combined capitals last week, the highest weekly volume of auctions held since the week ending December 1st last year.

The trend in clearance rates have also continued to rise, with the preliminary success rate coming in at 72.1% last week.

This current property cycle has been driven by an undersupply of good properties relative to current demand pushing up property values and rents there was nothing to suggest there will be any significant change in the near future.