Six months into 2025, it’s time to assess what’s materialised versus what was predicted—in both property markets and the technology transforming how we operate within them.

Market Reality Check

Sydney

The autumn selling season delivered mixed results. Clearance rates averaged 66-71% through March-May, strong enough to indicate a functioning market but not the frenzy some anticipated.

Price movements have been suburb-dependent rather than uniform:

• Eastern Suburbs and North Shore continued appreciating, though modestly
• Middle-ring suburbs showed stability rather than growth
• Outer suburbs saw scattered softness, particularly where new supply competed

Days on market have drifted slightly longer—now averaging 32-35 days versus 28-30 this time last year. Not alarming, but indicating less urgency among buyers.

The overall picture: a balanced market where good properties sell at fair prices, but vendor expectations must remain realistic.

Melbourne

Melbourne has been the most interesting market to watch. After several years of underperformance relative to Sydney, some suburbs have shown genuine momentum.

Clearance rates improved from late-2024 lows, averaging 64-68% through autumn. Inner suburbs and established middle-ring areas performed best.

The recovery remains patchy. Outer suburbs with high supply continue struggling. High-rise apartment markets show persistent weakness.

But the trajectory is encouraging. Melbourne may finally be establishing the price floor that enables renewed confidence.

Brisbane

Brisbane’s strong run has moderated. After substantial growth through 2023-24, price appreciation has slowed to low single digits.

This moderation is healthy—the previous pace wasn’t sustainable. Brisbane still benefits from interstate migration, relative affordability, and Olympic infrastructure investment.

Clearance rates remain solid at 58-63%. The auction market is less developed than Sydney or Melbourne, so these numbers represent good performance by Brisbane standards.

Interest Rate Impact

Rates have remained higher for longer than many predicted. This continued pressure has:

• Constrained buyer borrowing capacity
• Moderated price expectations
• Extended days on market in some segments
• Created ongoing refinancing stress for some owners

The anticipated rate cuts haven’t materialised at the pace some forecast. Markets are adjusting to the reality that this rate environment may persist.

Technology Trends Check

AI Adoption Acceleration

The prediction that 2025 would be AI’s breakthrough year in real estate has proven accurate. Adoption has accelerated across:

Valuation and pricing: AI-assisted pricing tools are now standard at sophisticated agencies. The technology has moved from interesting to essential.

Communication automation: Chatbots and automated follow-up have become mainstream. Implementation quality varies, but the adoption question is settled.

Content generation: AI-assisted listing descriptions, marketing content, and social media posts are widespread. The human-AI hybrid approach has become standard practice.

Prospecting: AI-powered seller identification has gained significant traction. Agencies using these tools report measurable advantages.

CRM Evolution

The major CRM platforms have released substantial updates:

AI integration: Native AI features within CRMs, including automated task prioritisation, suggested follow-ups, and predictive insights.

Workflow automation: More sophisticated automation capabilities reducing manual process steps.

Mobile capability: Improved mobile apps enabling field-based work without desktop dependency.

Integration depth: Better connections with portal, marketing, and transaction platforms.

Agencies that haven’t upgraded their CRM capabilities are falling noticeably behind.

Transaction Technology

Digital contracts and electronic exchange continue expanding:

PEXA adoption: Now essentially universal in NSW and Victoria for applicable transactions.

Digital signing: Electronic signatures have become default rather than alternative.

Contract platforms: Integrated transaction management is replacing document-by-document processes.

Settlement technology reduces time and friction, though implementation remains uneven across conveyancing practices.

Portal Development

Both major portals have released significant updates:

Enhanced analytics: Better data for agents about listing performance and buyer behaviour.

AI features: Automated insights, buyer matching, and predictive tools.

Integration capabilities: Improved APIs enabling better connection with agency systems.

The portal duopoly shows no signs of disruption, but both platforms continue investing in agent-facing capabilities.

What’s Surprised Us

Several developments weren’t widely predicted:

Slower Rate Relief

The expectation of earlier and faster rate cuts didn’t materialise. This has constrained market activity and pricing more than many anticipated entering the year.

AI Quality Improvement

The pace of AI capability improvement has exceeded expectations. Tools that seemed promising six months ago now seem primitive compared to current offerings.

Regional Market Resilience

Some regional markets have shown more resilience than predicted. Work-from-home patterns have proven stickier than expected, supporting demand in lifestyle locations.

Rental Market Intensity

Rental markets remain extremely tight. This continues supporting investor buyer confidence and affecting tenant behaviour in strata contexts.

Second Half Outlook

Looking ahead to the remainder of 2025:

Market Expectations

Spring selling season: Should see increased listing volume and buyer activity, assuming no significant economic disruptions.

Price trajectory: Continued modest growth in premium markets, stability in middle markets, ongoing pressure in oversupplied areas.

Days on market: Likely to remain in current ranges absent market-moving events.

Clearance rates: Expect continued solid but not spectacular performance.

Technology Priorities

For agencies planning second-half technology investments:

AI capability: If you haven’t implemented AI tools, the gap with competitors is widening. Act now.

Data quality: The agencies extracting most value from technology are those with clean, comprehensive data. Invest in data hygiene.

Integration: Disconnected tools create friction. Prioritise integration between systems.

Training: Technology without adoption delivers nothing. Ensure teams can actually use the tools you provide.

Assessment

The first half of 2025 has been characterised by market normalisation and technology acceleration.

Markets have found equilibrium—not booming, not crashing, but functional. Properties sell when priced appropriately. Campaigns succeed when executed well. The fundamentals work.

Technology has continued its march from optional to essential. Agencies without modern tools face measurable disadvantages. The digital divide within the industry is becoming harder to close.

The combination creates an environment where execution quality matters more than ever. Markets that reward good work and punish poor work separate high performers from the pack.

The second half offers opportunity for agencies positioned to capture it. Those with technology infrastructure, market knowledge, and execution discipline will thrive. Those still catching up will find the gap harder to close.

The race continues. The question is whether you’re running or watching others pull ahead.

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Linda Powers consults with real estate agencies on market strategy and technology adoption. Her mid-year assessment draws on observations across Australian markets and agency operations.