Q1 2025 saw significant shifts in the Australian property market. A key factor is the government's foreign investment ban on existing homes, aiming to improve affordability but potentially impacting real estate investment. Residential real estate faces a large housing supply shortfall, prompting developers to explore modular solutions. Conversely, the luxury segment benefits from a weaker Australian dollar, attracting overseas buyers.
Commercial property is experiencing surging demand for logistics and warehouse spaces, reflecting e-commerce growth. Reduced interest rates are stimulating real estate financing, though wage stagnation and construction costs remain challenges. Proptech and AI are increasingly vital, with companies like Mirvac and Lendlease leveraging technology to optimize portfolios. This report analyzes policy impacts, challenges in residential and commercial sectors, financial dynamics, and the transformative role of technology in the Australian property landscape.