What Price Should I Pay? - May Market Update 2025

It’s one of the most common questions we hear from property buyers today:
"What price should I pay?"

With so much market noise, mixed signals from the media, and a flood of online data, it's understandable that buyers feel confused. Determining the “right” price is no easy task – especially in a property market that continues to defy expectations.

According to the latest Domain House Price Report (March 2025), Australian capital city house prices have reached fresh highs. For the first time, Sydney, Melbourne, Brisbane, Adelaide, and Perth have all recorded median house prices nearing or exceeding the $1 million mark.
This milestone – once considered unimaginable just a decade ago – is now the new normal.

Let’s take a closer look at the figures:

• Sydney: Median house price now at $1.691 million, up 4% over the past year.
• Melbourne: Reached $1.035 million, up 0.3% for the past quarter, & turning a corner
• Brisbane: Surged to $1.22m, with a 8.7% rise year-on-year.
• Adelaide: Hit $1.0m, after a strong 12.1% jump.
• Perth: Rapid growth has pushed the median to $917,706, soaring 14.1% in 12 months.

When you consider that in 2015 only Sydney had cracked the $1 million mark, this nationwide shift is extraordinary. For buyers still hoping prices might fall significantly, the trend is clear: waiting has only led to higher entry costs.

There are valuable lessons we can learn from the present situation, and those of us with experience, connections and market savvy can read these tea leaves and identify emerging opportunities. Remember that saying most financial planners have on the wall: “Past performance is no guarantee of future results.” 

 
Many buyers tell themselves, “I’ll wait until after the election,” or “I’ll wait until interest rates settle,” or “I'll wait until the global economy looks safer.” But in reality, there is never a perfect time to buy. Smart buyers understand that opportunity often lies in uncertainty.

Markets adjust, interest rates fluctuate, and world events shift – but fundamentally, Australia's strong population growth, land scarcity, chronic under-building and economic resilience continue to drive long-term property demand.

Delaying a buying decision in search of perfect conditions can backfire badly. In fact, the cost of procrastination is one of the biggest hidden risks for buyers.

While you’re on the sidelines, prices keep moving – and what was affordable today becomes out of reach tomorrow.
We've seen countless buyers in the past few years continually chase a rising market, only to compromise on location, property quality, or end up priced out altogether.

Opportunity cost in real estate is real, and it compounds over time. The longer you wait, the harder it becomes to catch up.

In today’s market, working out what to pay for a property is harder than ever.

Online valuation tools offer instant numbers – but often wildly inaccurate ones. Many rely on outdated, incomplete, or automated data models that don't reflect on-the-ground market conditions.
Buyers relying solely on these tools often get a false sense of security and risk either overpaying – or missing out on great opportunities by underestimating true market value.

To determine the correct price for a property, several critical elements are required:

• Extensive local market knowledge – understanding the nuance of micro-markets, street-by-street variations, and recent buyer behaviour.
• Access to real-time comparable sales – including off-market transactions and private treaty sales that are not always visible online.
• Objective analysis – removing emotion from the decision, assessing the property’s true value based on comparable evidence, current demand, and future prospects.
  

This is where having a professional buyer’s agent can make all the difference.

At Propertybuyer, many of our team members are qualified valuers or have extensive property appraisal backgrounds. We apply formal valuation principles in every assessment, ensuring clients receive unbiased, data-driven advice.
We look beyond the glossy photos and agent marketing to conduct forensic-level research and critical analysis – giving our clients a significant edge in a competitive market.

Our knowledge is not just theoretical. It’s built on deep relationships with local selling agents, years of transaction experience, and hundreds of real-time case studies every month.

If you're wondering whether now is the right time to buy, consider this:
Markets reward those who act rationally in times of uncertainty.

Buying the right property, in the right location, at the right price, remains one of the most powerful wealth-building strategies – regardless of market cycles.
Yes, it’s essential to buy prudently. Yes, it’s critical to do thorough due diligence. But waiting endlessly for a "perfect" moment that never arrives can be the biggest mistake of all.

In fact, the buyers we see winning in this environment are the ones who:

• Act decisively when they see value.
• Rely on expert advice rather than headlines.
• Understand that property is a long-term investment, not a short-term gamble.

If you’re serious about buying, don’t let fear hold you back. Equip yourself with the right knowledge, the right guidance, and the right strategy.

At Propertybuyer, we’re here to help you navigate the noise, cut through the confusion, and make confident, informed decisions.
Because knowing what price to pay is not about guessing – it’s about knowing.

If you're considering buying this year, acting early may be the best move before competition heats up. Contact us at Propertybuyer to discuss how we can help you secure the right property in this evolving market. We’d be delighted to help you with your next property goal.

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call us on 1300 655 615 today.