Market Report
Property Market Report: March 2025
14 April 2025
by Dee Pajevikj
The financial world, its many international markets, its rhythms, cycles and practices, have been locked in a do-nothing phase waiting for President Trump’s revelations on who is going be burdened with what tariff. Poor old Norfolk Island received a nasty backhander. 29% on the zero products they export to the USA seems harsh.
Even though tariffs seem a retrograde step in an age of international trade, at 10% Australia has been treated relatively well. And now “Liberation Day” has come and gone there will be some amount of global reciprocity.
The one truth a trade war emphasises is that real estate is a good investment when shares are at the mercy of international uncertainties. The stock market has tanked. And while the US President’s brainstorms might damage Iceland’s real estate market, locally our market is not only impervious, but enlivened, by his activities.
The final week of March saw 2,905 auctions nationwide, the most since October last year. However, buyer demand isn’t quite yet keeping pace with increased market activity and clearance rates were down at 65%. This will be more to do with the uncertainty that always surrounds a looming federal election than any perceived long-term weakness in the market.
An exciting movement Abercrombys has noticed in the luxury market lately is the growing demand for family homes. Buyers are increasingly confirmed that the beautiful space in which you live can also be your best investment. It’s called a win-win. With this in mind, generations of families are more commonly staying together under one, larger, roof. So buyers aren’t now looking for location as much as a sympathetic blend of functionality and indulgence, something that caters to the everyday requirements while appreciating formidably.
While everyone is certain the recent rate cut by the RBA is the beginning of a longer-term downward trend, similarly, we all knew the Reserve would hold the rate steady at 4.1% this month. With Australian residential property reaching new highs, a vanishingly small increase in unemployment, and Mister Trump’s (Deliberate?) global uncertainty at play, the RBA’s cautious approach reflects the need for stability. It continues to hold its nerve and chart a safe exit from an inflationary period. Though all of us in the industry, and all of those with a mortgage would love to see a fusillade of rate cuts, we recognise the RBA’s tactics as perfectly reasonable.
Sellers need a measure of certainty before they go to market. They get that with Abercrombys, where our private auction method continues to deliver above market results while shielding our vendors from possible public auction distress. In March we successfully sold 95% of our vendors’ homes via private auction, commonly exceeding price expectations. The combined benefits of confidentiality and transparency invoked using this method of selling makes it the preferred choice for canny vendors.
In March Abercrombys proudly celebrated 20 years of partnership with Macquarie Group. A highlight of the event was hearing from Macquarie’s Martin Lakos, who provided timely insights into today’s economic landscape. His message? While uncertainty is a given, those who stay 1: Informed. And 2: Adaptable, are always best positioned for success.