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Supporting Borrowers and Brokers Amidst Australia’s Housing Market Trends

March 6, 2025 In Uncategorized

Supporting Borrowers and Brokers Amidst Australia’s Housing Market Trends

Australia’s housing market is currently navigating a complex and evolving landscape, with mixed signals in pricing, affordability challenges, and supply constraints. At Capital Bridging Finance, we are committed to providing tailored financial solutions to help you thrive in this dynamic environment.

As reported this week by the Australian Broker News, after a dip in late 2023, housing prices began to edge upward in February 2025. However, Westpac economists predict only a modest 3% growth for the year, citing persistent affordability challenges and limited housing supply (Westpac, 2025).

A recent Westpac survey revealed growing interest among buyers, planning to ‘pull the trigger’ over the next 12 months rose to about a third. This is up from a quarter with plans in 2024 (Westpac, 2025).

This reflects pent-up demand and optimism about future opportunities. Notably, the Australian Broker also reported insights into the growth of interest in purchasing new homes has rose by 2.3%, while investment property interest increased by 3.3%. However, first-home buyer interest saw only a slight uptick of 0.3%, underscoring ongoing affordability pressures (Australian Broker News, 2025).

 

Key Market Insights

  1. Modest Price Growth Expected

Regional markets such as Western Australia and Queensland are expected to lead with 4% growth, while Sydney and Melbourne are forecast to see weaker growth of 3% and 1%, respectively (Australian Broker News, 2025).

  1. Interest Rate Reductions

The Reserve Bank of Australia (2025) has already implemented a 25-basis-point rate cut in February 2025, with further reductions totaling 75 basis points expected by the end of the year. While this is anticipated to stimulate buyer activity, the impact remains uncertain, as the housing market has shown surprising resilience to previous rate changes (Australian Broker News, 2025).

  1. Rising Buyer Interest

As mentioned, Westpac’s recent survey reflects pent-up demand and optimism about future opportunities when reflecting upon buyer interest. Notably, interest in purchasing new homes rose by 2.3%, while investment property interest increased by 3.3%. However, first-home buyer interest saw only a slight uptick of 0.3%, underscoring ongoing affordability pressures (Australian Broker News, 2025).

  1. Tight Housing Supply

Housing supply remains a significant challenge, with construction delays and high costs slowing new builds. While housing approvals are projected to rise to over 200,000 annually by 2026, completions are expected to remain at just 171,000 per year—well below the government’s target of 240,000 per year (Australian Broker News, 2025). This supply-demand imbalance is likely to persist until at least 2027.

 

Bridging the Gap – How We Support You

At Capital Bridging Finance, we understand the challenges in which borrowers and brokers face in today’s climate. Our services are designed to provide fast, flexible financial solutions that address these key issues:

  1. In a competitive market where timing is critical, our bridging loans offer rapid approvals and settlement in as little as 48 hours. This empowers borrowers to act quickly on opportunities as they arise.
  2. Unlike traditional lenders, our bridging loans are tailored to meet diverse needs and circumstances. Whether you’re upsizing, downsizing, or investing in property, we provide customised solutions that fit your unique circumstances.
  3. For borrowers struggling with affordability constraints or waiting for their current property to sell, our loans offer a unique opportunity to unlock equity and secure their next property without financial strain.
  4. Our decision makers work closely with brokers to ensure seamless solutions for their clients. With flexible and simplified processes, brokers can trust us to deliver timely results that work with you, not against.

Contact us today on 1300 019 669 to speak directly to a decision maker and see how we can support you TODAY!

 

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