Australia’s housing market continued its recovery in FY25, with residential settlement volumes and property values both rising on the back of interest rate cuts, regional demand, and improving affordability.
Mortgage brokers are navigating a more competitive lending landscape, as borrower activity accelerates and non-bank lenders gain market share.
Two RBA cash rate cuts in February and May have helped boost household sentiment and fuel demand—particularly in the refinancing space. Over half of new mortgages are now originated via third-party channels such as brokers, with non-bank lenders and smaller banks increasingly relying on brokers for customer acquisition, especially in competitive markets like Queensland, New South Wales, and Victoria.
Nearly 722,000 properties were settled across NSW, Victoria, Queensland, Western Australia and South Australia in FY25 – a 3.2% increase from the previous year, according to the latest PEXA Property Insights report.
“QLD settled 196,000 properties – the most out of all states,” said Marcella Choy, senior research analyst. “Most states grew modestly compared to the previous financial year. WA was the only state with no growth in settlement volumes in FY25.”
The value of property settled nationally reached $726.6 billion, up 9.4% year-on-year, reflecting a stronger pace of price growth across the market. Queensland and Western Australia saw the largest value gains.
Despite annual gains, the June quarter saw a 1.6% year-on-year decline in settlements, largely driven by softer residential activity. Victoria recorded the highest number of residential settlements in the June quarter, overtaking Queensland.
Vacant land activity peaked in June, as it does seasonally, particularly in Victoria and Queensland, where more than a quarter of all transactions were vacant lot settlements.
“There were several factors that had an impact on how the property market performed in the Jun-25 Qtr, including wild weather… and the delay in settlement activity due to the Federal election in May,” Choy said.
Queensland recorded the highest overall value of residential settlements in FY25, surpassing Victoria due to rising prices. Greater Brisbane home values rose 12.5% year-on-year, while regional QLD values climbed 13.8%, PEXA reported.
Victoria, however, led in residential settlement numbers for the June quarter, with regional activity also surging.
“This signals a possible reversal of the trend of migration into more metropolitan areas,” the report said. “As housing becomes increasingly unaffordable, moving regional has become a more attractive option.”
Across all five mainland states, regional areas and new-build suburbs dominated settlement growth. In Sydney, Castle Hill, Rouse Hill, Tallawong, and Austral stood out, while Rhodes and Lidcombe were the only top suburbs within 15km of the CBD.
In Melbourne, Mickleham and Wollert had the highest settlement numbers – driven by vacant land purchases. In Queensland, Redbank Plains, Greenbank, and Yarrabilba led activity, while East Perth and fringe suburbs dominated WA. Regional towns like Mount Barker, Mount Gambier and Port Lincoln topped South Australia’s list.
Looking ahead, the National Housing Supply and Affordability Council forecasts that 825,000 homes will be added nationally by 2029 – falling short of the 904,000 households expected to form. The shortfall is expected to place continued pressure on existing housing stock.
“Stiff competition is likely to push prices and trading volumes higher across many locations,” the PEXA report said.
While mortgage rate cuts and wage gains are supporting borrower capacity, the housing shortage and continued lender competition are likely to keep brokers busy into FY26.
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