Big Shifts, Bigger Impacts – 2025’s Property Headline Trends, Decoded

As we begin our deep-dive research for the next edition of our comprehensive market report, we’re already uncovering new data and insights that paint a very different picture to what’s being peddled in the media. Over the next few weeks, we’ll be sharing a series of articles that unpack the headlines dominating the national conversation, offering Investor Property’s take, backed by real analysis, not clickbait. With Mal Cayley’s market intelligence and the foundation of the Sunshine Coast Property Market Update, we’re cutting through the noise to show what’s really driving the market, what others are missing, and what it means for you as an investor.

Here’s our take on the major shifts shaping the year ahead.

1. Interest Rates Are Easing – But That Doesn’t Mean Relief for Buyers

With the RBA tipped to cut the cash rate to 2.6% by early 2026, the market is already responding. Lower rates mean lower repayments, and that’s welcome news. But in a severely undersupplied market like Australia’s (and especially the Sunshine Coast), easier credit doesn’t ease market pressure, it intensifies it.

This isn’t about housing affordability getting better. It’s about more buyers entering a race for too few properties. With rents rising, inflation easing, and borrowing becoming cheaper, demand is set to surge again, pushing prices higher, especially in high-demand price brackets under $1 million.

“The rate cuts will give people confidence to act, but they won’t solve the supply issue. Rather, it will compound the issue with increased competition for an increasingly scarce asset,” says Mal Cayley.

2. Investor Sentiment Is Backed by More Than Emotion

The NAB Residential Property Index, a national survey of property professionals, jumped to +40 in March 2025, reflecting a sharp rebound in investor confidence. It tracks expectations around rental growth, capital gains, and buyer activity, and right now, the signals are strong.

Why? Because smart investors are watching the broader system, not just headlines. They see an environment where:

• Interest rates are on the way down
• Government schemes are adding heat to the sub-$1M market
• Rental vacancies are critically low
• Supply remains years behind demand

These aren’t just good signs; they’re structural signals. Savvy investors are moving ahead of the wave, knowing that policy and macro trends are aligning to drive sustained price growth and yield potential in key markets.

“Understanding what’s driving confidence, rather than just recognising that confidence is there, allows you to act with clarity instead of getting caught up in the hype,” Mal explains.

3. What ‘Affordable Housing’ Really Means (and Why It’s Misleading)

You’ve seen the headlines – governments pledging billions for “affordable housing.” But here’s the truth: affordable housing doesn’t mean what most people think it means.

When we hear ‘affordable’, we think cheaper homes, first home buyers and low rents. This is not the case. Governments have hijacked the term to talk about subsidised social housing – a tiny slice of the market, currently around 3% of housing stock. It’s typical smoke and mirrors to create the impression that they are promising that housing prices will become more accessible for everyone, which simply isn’t the case. They’re investing in something that they haven’t invested in for 30 years (social housing is only half the level of all housing that it was 30 years ago). Don’t let them fool you.

The truth is that true affordability only comes from the balance between supply and demand. That means more homes of all types – social, rental, owner-occupied, downsizer-friendly, dual-key, and everything in between. Without that mix, prices remain high, competition remains fierce, and real affordability stays out of reach for renters and first-time buyers alike.

“You can’t ‘subsidy’ your way out of a housing crisis. You need supply. And lots of it,” says Mal Cayley.

Until policies shift toward fast-tracking diverse housing stock, particularly in high-demand regional areas, affordability will remain a policy talking point of an unattainable utopia, not a market reality.

4. Are Property Investors the Problem or the Solution?

Media narratives, driven by the extremes of politics and those looking to shift blame and placate the uniformed, often frame investors as the cause of rising prices. But the data tells a different story, and so does the Sunshine Coast.

The reality is, residential property investors are the largest providers of rental housing in the country. With less than 10% of rentals coming from government housing, private investors are shouldering over 90% of the demand. Most aren’t millionaires or corporations, they’re ordinary Aussies, many earning under $80K, and over 70% of them own just one investment property.

Without them, the rental supply collapses. And on the Sunshine Coast, where vacancy rates are well below crisis levels, the role of investors is even more critical.

Far from being villains, investors are essential partners in solving the housing crisis. They create supply. They meet demand. And when supported by clear strategy and strong data, they help drive the exact kind of housing Australia desperately needs: medium-density, flexible, and livable.

“Demonising investors is short-sighted politicking at its worst. The solution isn’t less investment, it’s smarter, more intentional investment,” Mal explains.

Ready to make smart moves, not guesses?

Optimism is returning, but in a constrained market, that means more competition, not less risk. Now is the time to move with clarity, strategy, and support.

Review or build your property investment strategy that’s backed by real data, not just headlines. The Investor Property team combines over a decade of accurate predictions with deep local insight to help you take advantage of today’s market conditions with confidence.

Talk to us today and get clear on your next step.