End-of-year wrap: What were the property trends in 2025

The previously more affordable capitals all saw prices soar in 2025, with Brisbane establishing itself as the nation's second-most expensive capital, while Adelaide and Perth solidified their status as higher-priced markets.

By the end of November, house prices had risen by nine per cent nationally, and units by seven per cent.

The report found that rising property prices had largely offset the savings from the three rate cuts, with buyers still feeling the financial sting.

Domain chief of research and economics, Nicola Powell, said that even with factors reshaping market demand, fundamental pressures, such as supply, remained.

“By the close of 2025, it was clear the year had been a turning point rather than a resolution,” Powell said.

The rise of townhouses and units

As detached houses have become increasingly unattainable, buyers have shifted their priorities toward cheaper, more versatile properties year-round.

Domain’s search data found that buyers had shifted towards more flexible and lower-cost housing options, driven by rising house prices, with searches for “duplex,” “dual living,” and “granny flat” surging nationwide.

The report found that “granny flat” and “dual” surged to the fourth and fifth most commonly searched terms nationally, while regional markets also saw the term “duplex” trend.

Powell said that in 2025, many buyers had come to terms with purchasing smaller homes, exploring different locations, or embracing multipurpose living as their new route to ownership.

“Buyers responded not by stepping back, but by adapting,” Powell said.

Interstate interest declines

While buyers have favoured capital city living in 2025, some have turned to regional markets in a bid to find a better deal.

While interstate buying has been widespread, the report found that property seekers liked to remain within their own states.

According to the data, almost half of Domain's total enquiries into regional Western Australia and South Australia have originated from Perth and Adelaide, respectively.

Regional NSW and Victoria have approximately a quarter of their searchers originating from Sydney and Melbourne, respectively, highlighting buyers' interest in more affordable options located just outside their favoured capitals.

Conversely, the report found that the regional search activity has begun to soften, driven by a return towards city-based living and a reduction in fully remote roles.

Domain search results also showed that while a home office or study remains a desirable amenity, its search volume has begun to level off, with buyers viewing it as a luxury rather than a rising priority.

Premium assets driven by lifestyle appeal

For buyers with a larger budget, the terms “pool”, “waterfront” and “view” were the most-searched housing amenities, with buyers still searching for properties driven by lifestyle aspirations.

While still popular, “water view” and “beach” have both slipped down the rankings in search terms, suggesting that buyers have been readjusting their priorities when it comes to the “higher-cost lifestyle features”.

When it comes to home design, buyers have been searching for “art deco” style homes, with the term climbing from 12th to sixth, as buyers actively seek homes with design appeal.

Detached houses with four bedrooms, two bathrooms and two parking spaces (4/2/2) were the most sought after in six of the capital cities and across the nation’s regional markets, making it the most favoured house type.

Additionally, buyers have preferred units with two bedrooms, one bathroom, and one car space, according to the trends found in Domain’s searches.

Buyers looking to purchase a townhouse have preferred a three-bedroom, two-bathroom and two-car space split.

What’s coming next?

Powell said that the data showed that while price growth may begin to slow at the end of the year, buyers may have to wait for a while before prices start to fall.

“Steady rates may actually help cool some of the late-year heat in the market, particularly as investors compete with first-home buyers supported by government incentives,” Powell said.

“Even so, the fundamentals aren’t changing. Strong population growth, low vacancy rates, persistent undersupply, made worse by high construction costs, are likely to keep prices buoyant through the first half of 2026.” Powell concluded.

[You may also be interested in: 2026 market shifts to put agents’ pricing skills to the test]