Property Clock Insights: Timing the Market in August 2025

Timing the property market can feel a bit like guessing the weather, you want the perfect conditions, but things can change quickly. That’s where the Property Clock comes in. Each month, we take the pulse of Australia’s housing market to see which cities are rising, peaking, slowing, or bottoming out. In this August 2025 update, we’ll break down prices, interest rates, listings, and rentals, so you can make smarter choices whether you’re buying, selling, investing, or renting.

The big drivers this month

Before we get into where prices are heading, it’s worth looking at the forces shaping the market in August 2025. These are the “big levers” that push property prices up or down. Think of them as the ingredients in the recipe, change one, and the final result can taste very different. Here’s what’s driving things right now:

1. Interest rates
   The Reserve Bank’s decision matters because it affects how much it costs to borrow money.
   • If rates go down: Monthly repayments get smaller and buyers can borrow more, which usually brings more people into the market.
   • If rates stay the same: Conditions don’t change much, and buyers and sellers adjust to the current cost of loans.
2. Supply (homes for sale)
   The number of properties on the market changes the balance between buyers and sellers.
   • Low supply: Fewer homes for sale can push prices up because buyers compete for limited stock.
   • High supply: More homes mean buyers have more choice, which can slow price growth.
     
3. Population and jobs
   Strong migration and steady employment keep more people looking for homes. If people feel secure in their jobs, they’re more likely to buy or upgrade.
4. Construction costs
   Building new homes is still expensive. High costs slow down new housing projects, which means less fresh supply and that can help keep prices firm.

Where are we in the cycle?

Herron Todd White Property Clock

The Property Clock is a handy way to picture where each market sits in the cycle. Imagine a clock face:

• 12 o’clock — Peak: Prices are at their highest point and growth is slowing.
• 3 o’clock — Decline: Prices are falling and buyers have more choice.
• 6 o’clock — Bottom: The market has hit its lowest point and is ready to turn.
• 9 o’clock — Rising: Prices are climbing again as demand picks up.

Each city and even each suburb can be in a different position.

Markets at or approaching their peak

These markets have seen strong growth and may be close to topping out:

• Perth and Adelaide are leading with strong growth, Perth up about 18.7% in the past year and Adelaide up 14.6%, with Adelaide forecast to rise 3–6% in 2025
• Brisbane continues to show solid momentum, expected to grow 2–5% this year
• Sydney is recovering, values gained 0.6% in July, with annual growth near 4%, reaching new highs backed by tight supply and buyer resilience

What this means: Sellers may still get strong prices, but buyers should negotiate carefully and avoid stretching beyond budget.

Markets declining or at the bottom

These markets have already cooled or are showing early signs of recovery:

• Melbourne: Still lagging PropTrack expects a small dip or up to 2% rise, and values remain below earlier highs 
• Canberra, Hobart, Darwin: A slower pace, forecast to see gentle growth of 0%–3%
• National trend: While the overall market remains upward, growth has slowed, some areas reflect a more patient, stabilising pace

What this means: Buyers in these areas can negotiate more confidently; meanwhile, sellers need to align expectations with current market sentiment and consider value-driven pricing.

Buyers: what to do in August 

Buying in today’s market can feel fast-paced, especially with some cities still seeing price growth and others starting to stabilise. August 2025 is a month where preparation matters just as much as opportunity. With interest rates possibly holding or edging lower, and listings slowly increasing in some capitals, buyers who are organised can move quickly and negotiate with confidence. Here’s how to be ready:

1. Know your number – Speak to your bank or broker to get a clear borrowing estimate before you start looking. This helps you focus on homes in your true budget range.
2. Shortlist suburbs – Look beyond your dream location to affordable neighbouring suburbs. You might find similar homes for less.
3. Move fast but smart – Secure pre-approval, arrange building and pest inspections in advance, and track recent comparable sales so you know fair value.
4. If rates fall – Be prepared for a sudden jump in competition. Have your paperwork ready so you can act quickly.
5. If rates hold – Use longer “days on market” to your advantage and negotiate firmly on homes that have been listed for a few weeks or more.

Sellers: how to maximise your result this month

August 2025 is a mixed market, some capitals are still enjoying strong demand, while others have cooled slightly. For sellers, success now comes from aligning with current conditions rather than relying on last year’s headlines. Buyers are well-informed and have more data at their fingertips than ever before, so presentation, pricing, and timing are crucial.

• Price to the market – Base your asking price on current comparable sales in your suburb, not outdated boom figures. This keeps your property attractive from day one.
• Fix the top 5 turn-offs – Fresh paint, updated lighting, a tidy garden, a neutral scent indoors, and small repairs can make a big difference to first impressions.
• Choose the right method – In hot demand areas, auctions can drive competition; in quieter markets, a well-managed private treaty can allow more room for negotiation.
• Stage simply – Declutter to highlight space, let in natural light, and invest in fresh, professional photography.
• If stock is low – Move quickly to list your property while buyers are still competing for fewer options.
  
  

Investors: simple rules for August

August 2025 is a month where steady, fundamentals-based investing will serve you better than chasing short-term gains. Some capital cities like Perth, Adelaide, and Brisbane are still showing strong growth, while others are flattening out. Interest rates may hold or edge lower, rental demand remains firm in most areas, and construction costs are still high. The message for investors: focus on cashflow security and long-term potential.

• Cashflow first – Make sure the rent you can realistically achieve covers repayments and other costs at today’s interest rates. A healthy cash buffer will protect you from future rate shifts.
• Vacancy & yield – Target areas with proven rental demand and yields that meet your investment goals. Check vacancy rates in your chosen suburb—tight vacancy means more stability.
• Avoid over-building zones – Be cautious in areas with a pipeline of new high-rise apartments or large estates, as oversupply can limit both rent growth and capital gains.
• Hold period – Think long term 7 to 10 years is a safer horizon. Avoid relying on quick flips to turn a profit in a cooling or balanced market.

Rentals: what tenants and landlords should know

The rental market in August 2025 remains competitive, though some cities are seeing a slight easing in vacancy rates as new supply trickles in. Rents are still high in most capitals, and well-presented properties lease quickly. For tenants, that means being ready to apply on the spot. For landlords, it’s about maintaining property appeal to attract the best renters and reduce downtime.

• Vacancy – National vacancy rates remain low, but in some cities there’s been a small increase. This could slow rent growth in those pockets.
• Lease timing – If possible, align lease start and end dates with stronger seasons (often late spring to early summer) when demand peaks.
• Repairs and standards – Landlords should keep properties well-maintained and compliant with current regulations to avoid disputes and costly delays between tenants.
• Tenant readiness – Tenants should prepare application documents in advance, including references and proof of income, to move quickly on suitable properties.