Property buyers have given up waiting for interest rates to change and plan to re-enter the market, according to the APIM Q3 Property Sentiment Report. It shows the proportion of buyers taking a “wait and see” approach peaked at 39% at the end of 2023 and is now just 22%.

The survey says residential property is still the overwhelmingly dominant force, accounting for 34% of transactions, although commercial property is becoming a more significant player, with more than one-fifth of respondents active in this space. Investors now account for 63% of those intending to buy in the next 12 months, which is up 10% from the previous quarter.

The latest Mortgage Insights report from Money.com.au shows that the number of new investor loans rose by 19% over the past year. Money.com.au’s home loans expert, Mansour Soltani, says Western Australia has been the standout market of 2024, but Victoria is now “hot on its heels”. “My prediction for 2025 is that as interest rates drop, buyer activity will ramp up again in the Eastern seaboard states – NSW, VIC, and QLD. Meanwhile, Western Australia and South Australia, which are becoming saturated markets, may start to stabilise.”