EOFY Market Wrap

As we reach the end of the financial year and the halfway point of 2025, it’s a perfect time to take stock of how property compares to other major investment classes.

You may be surprised by how well it’s performed — especially when you account for how most Australians actually invest in property: with leverage.

January–June 2025: Year-to-Date Performance Snapshot

Here’s how key asset classes have performed in the first half of 2025:

• Australian Bonds (AusBond Composite Index): +0.16%
• ASX 200: +4.35%
• NASDAQ: +7.2%
• Global Equities: +5.7%
• Bitcoin: +8.9%
• Crypto Index: –0.6%
• Gold: +23.6% (largely a catch-up after years of flat performance)

Property in 2025: Steady with Serious Potential

• National capital growth: +2.1%
• Perth: +3.5%
• Melbourne: +1.2% (and gaining momentum)

While those headline numbers look modest, they don’t tell the full story.

Because most property investors use borrowed funds, returns on invested capital are significantly amplified.

With a typical 80% loan-to-value ratio, national property delivered an estimated +8.4% return on invested funds — outperforming nearly every major asset class YTD.

And this has been achieved under contractionary monetary conditions — before the full benefit of falling interest rates has kicked in.

Playing the Long Game: Why Property Endures

Short-term market moves are worth monitoring — but long-term performance is where property shines:

• Over the past 20 years, Australian house prices have grown +6.8% p.a. on average
• Melbourne & Sydney have averaged +7.3%–7.6% p.a.
• Including rental income, total annual returns often sit in the 9–11% p.a. range

That’s consistent, compounding growth — with less volatility than equities or crypto.

What to Watch in the Second Half of 2025

• Interest rates are trending downward, supporting stronger price growth
• Melbourne is emerging as a value play, especially for investors
• Western Sydney will continue to be in high demand
• Perth may be nearing its peak
• Growth will be location- and property-specific

Strategy Will Separate Winners from the Pack

Property isn’t uniform — it’s suburb-by-suburb, dwelling-by-dwelling. In this environment, quality advice makes a measurable difference.

The right Buyer’s Advisor can help you avoid costly errors, spot undervalued opportunities, and invest with clarity.

In the first half of 2025, property has quietly outperformed when assessed through a realistic, leveraged lens.

And with more rate cuts expected, the second half could deliver even stronger results — for those in the right markets.

So yes, track short-term signals. But the best results come when you invest with a long-term plan.

With the right strategy, leverage, and guidance, property remains one of Australia’s most powerful tools for building wealth.

Want tailored advice or suburb-specific research for your next move? Reply to this email or book a 1:1 strategy call — we’re here to help.

Warm regards,