Having passed the halfway point of spring 2025, it's clear that sellers are in the driver's seat. 

Property prices are rising at an impressive clip across the country, listing levels are excessively low, and buyer demand is strong and getting stronger. 

Find out why this spring selling season has become a perfect storm for sellers, what buyers are looking for this year, and how things could play out in the coming months.

High demand continues to meet thin supply

Australian property prices lifted by a very solid +2.0 per cent over the September quarter — and in some cases, that figure is much higher, according to Cotality data.

The impact of the three interest rate cuts we've seen so far in 2025 is still flowing through, as buyers find themselves able to borrow more and come to the market with increased budgets. 

But perhaps the biggest driver of growth right now is a significant imbalance between supply and demand. Cotality reported record-low listings in September, while sales activity was +7.3 per cent higher than the five-year average. 

One key piece of that rise in demand has come in the form of increased investor activity, thanks to more favourable borrowing conditions, which is deepening the buyer pool. 

Roy Amery, Managing Director at R&W Rooty Hill & Mt Druitt in Sydney, said "The biggest increase we've seen is in investors. They sort of went missing a couple of years ago when interest rates were high, but they've come back in a massive way."

Anshul Trivedi, director at Milestone Real Estate West in Melbourne, said he's also seen a big uptick in buyers from Sydney and that the majority of his sales in the past month have been to investors, though "owner occupiers are also coming back in the market."

From October 1st, major changes were made to the federal government's Home Guarantee Scheme, making a much larger portion of first home buyers eligible to buy a property with a 5 per cent deposit — a shift that's expected to see a considerable uplift in first home buyer activity from this month onwards. 

With listings at such low levels, demand being supercharged from both investors and first home buyers, and, in many cases, record-high prices getting higher, it paints a picture of a spring selling season that's extremely favourable to sellers.

What are buyers looking for around Australia this spring?

Buyer trends can at times be difficult to track, but some recent analysis from Domain has shed light on what's topping the priority lists of buyers in spring 2025 based on search terms. 

In Sydney, practicality has emerged as a key theme for buyers. "Granny flat" is their top search, indicating interest in extra rental income or multigenerational flexibility. Character is also of clear importance with "art deco" on the rise, and buyers are straddling a line between smaller houses and larger townhouses at similar price points.  

For Melbourne, design and period charm are king. “Art deco” tops the list, with “heritage” and “warehouse” close behind. Townhouses are showing unusually strong appeal (the highest share nationally), sitting head-to-head with detached homes at key price points. 

Brisbane buyers are unsurprisingly lifestyle-focused. “Pool”, “waterfront” and “view” are dominant, although “dual living” and “granny flat” are rising too — possibly in response to such large price hikes for the Queensland capital over recent years. Notably, “city” cracks the top searches, pointing to renewed CBD-adjacent demand. 

In Adelaide, priorities look balanced between lifestyle and affordability. “Pool” leads in search terms and “view” has climbed up the ranks, but what stands out is “stamp duty” entering the top 10 terms — evidence that buyers are actively hunting incentives. Turnkey “new” homes also rank highly.

And in Perth, it's the combination of coastal lifestyle and versatility. “Pool” remains the top-ranked search term, though “granny flat” has surged to second, and “shed/garage” features strongly, indicating that space and income flexibility matter to WA buyers. Townhouse searches now sit at roughly the same budget as houses, showing that there are some trade-offs at work.

As Domain's report summarises, buyers are "rethinking what matters most in a home — whether it’s space for extended family, period charm, outdoor amenities, or upfront savings."

Another rate cut may be months away, but the tailwinds remain

The near future looks bright for Australia's property markets, although it's unlikely we'll see another interest rate cut to provide another boost this side of the new year. 

With inflation for the September quarter coming in higher than the Reserve Bank had expected, the big banks have reconsidered their forecasts. While Westpac still predicts another cut to come in November, ANZ, NAB and CBA all see the next cut coming in February 2026 at the earliest. 

But the shifting inflation outlook isn't likely to put the brakes on such strong momentum for the remainder of spring, and there may be larger forces at play.

The aforementioned changes to the Home Buyer Guarantee scheme have only just kicked in this month, and they're expected to have a big impact in a short timeframe. 

Independent economist Saul Eslake pointed to modelling that suggests "the price of homes that first home buyers are likely to buy could be pushed up by as much as 5 per cent over a relatively shorter period of time."

And, unless listings pick up significantly and suddenly, the level of supply that's currently on the market should continue to be outweighed by strong buyer demand, whether it's from first home buyers taking advantage of the government scheme, investors with a renewed appetite to get into the market, or everyday owner-occupiers looking to make their next move.