CBRE

FIGURESIAUSTRALIANRESIDENTIALIQ32025

Listingshortagefuelspricegainsinsmallermarkets.Rentsholdsteadyinmostcitiesdespitelowvacancy.

+2.4%+1.7%+12.5%19.5%+4.1%+28.9%

MedianhousevalueMedianunitvalueOwneroccupierlendingInvestorlendingHouseapprovals'Other'approvals

(CombinedcapitalsSept.q-0-q)(CombinedcapitalsSept.q-0-q)(rollingannualtoJune)(rollingannualtoJune)(rollingannualtoAugust)(rollingannualtoAugust)

Note:Arrowsindicateannualchange.

KeyPoints

一TheAustralianresidentialmarketsawsolidQ3gains,drivenbypositivesentimentandincreasedborrowingcapacity.Brisbane,Perth,andAdelaideexperiencedthestrongestpricegrowth,

supportedbybelow-trendlistinglevels.Sydneyalsoperformedwell.MelbourneisshowingsomeearlysignsofrecoverywhileCanberra'sperformanceremainsmixed.

-Nationally,propertylistingsaresitting~20%belowthe10-yearaverage.Theshortage,however,ismostacuteinthesmallermarkets,withSydneyandMelbournealittleabovetheirlong-term

trends.

-CBREforecastthefuturesupplyofapartmentsislikelytohoveraround60,000perannumthroughto2030.Since2023,wehavecut50,000apartmentsfromourforecastpipeline.Feasibilitychallenges,softpresalesmarketsandlabourshortages,areamongstthefactorspreventingapprovalsfromtranslatingintocompleteddwellings.

-Thenationalvacancyratewassittingat1.2%asofSeptember2025,stilltrendingnearahistoriclow.Despitethis,mostcapitalcitiessawflatrentgrowththisquarter.Thecombinedcapitals

medianhouserentwasunchangedoverthequarterat$650perweek.Themedianunitrentalsosatat$650perweek,flatonthequarterbutup3.2%y-o-y.CBREexpectsthecurrentslowdowntobeshort-lived,forecastingaverageannualrentgrowthof4%throughto2030.

FIGURE1:Australianresidentialvalueandpricechange,yeartoSeptember2025Annualvalue/pricechange(%)

15%

10%

5%

0%

-5%

12.4%

10.2%

8.1%

7.1%

6.1%6.4%

2.5%

0.2%

—4.0%

8.7%—

6.8%

9.9%

9.6%

3.4%

0.3%

-0.3%

SydneyMelbourneBrisbaneAdelaidePerthCanberraGoldCoast*Sunshine

■Houses■UnitsCoast*

Source:Cotality(note:GoldandSunshineCoastdatarepresentspricesoveryeartoJuly)

1CBRERESEARCH◎2025CBRE,INC.

FIGURESIAUSTRALIANRESIDENTIALIQ32025

2CBRERESEARCH◎2025CBRE,INC.

FIGURE2:Residentialbuildingapprovals,Australia(rollingannual)

Rolling12-monthapprovals

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

20052007200920112013201520172019202120232025

FIGURE3:Residentiallending(excludingrefinancing),AustraliaValueofnewloans(Sbnquarterly)

$100

$80

$60

$40

$20

$O

20052007200920112013201520172019202120232025

AustraliaHousesAustraliaOtherOwnerOccupier(Sbn)Investor(Sbn)Total(Sbn)

Source:AustralianBureauofStatisticsSource:AustralianBureauofStatistics

FIGURE4:Australianresidentialprices(quarterly%change)Quarterly%change

Mar-20

Jun-20

Sep-20

Dec-20

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

Jun-22

Sep-22

Dec-22

Mar-23

Jun-23

Sep-23

Dec-23

Mar-24

Jun-24

Sep-24

Dec-24

Mar-25

Jun-25

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

-4.0%

-6.0%

■HousesUnits

FIGURE5:Australianmedianrentandvacancyrate

Medianrent($/week)Vacancyrate(%)

$7003.0%

$650

$600

$550

$500

$450

$400

2015

201620172018201920202021202220232024

1.5%

1.0%

0.5%

2.5%

2.0%

2025

0.0%

一Median3brhouserent($/week)—Median2brunitrent($/week)Vacancyrate(%)

Source:RealEstateInstituteofAustraliaSource:RealEstateinstituteofAustralia;SQMResearch

FIGURESIAUSTRALIANRESIDENTIALIQ32025

3CBRERESEARCH◎2025CBRE,INC.

FIGURE6:Changeinmedianrents,September2023toSeptember202524-month%change

Source:Domain

FIGURE8:Valueofnewowner-occupierloansbymajormarkets(Sbnmonthly)Valueofnewowner-occupierloans($bnmonthly)

$24

$20

$16

$12

$8$4

$O

20052007200920112013201520172019202120232025

NewSouthWalesVictoriaQueenslandWesternAustralia

Source:AustralianBureauofStatistics

FIGURE7:Australianmedium/highdensityapprovalsbymajormarket(rollingannual)Rolling12-monthunitapprovalsbymarket

50,000

40,000

30,000

20,000

10,000

0

20152016201720182019202020212022202320242025

GreaterSydneyGreaterMelbourneGreaterBrisbane

Source:AustralianBureauofStatistics

FIGURE9:Valueofnewinvestorloansbymajormarkes(Sbnmonthly)

Valueofnewinvestorloans(Sbnmonthly)

$14

$12

$10

$8

$6$4$2

$0

20052007200920112013201520172019202120232025

NewSouthWalesVictoriaQueenslandWesternAustralia

Source:AustralianBureauofStatistics

FIGURES|AUSTRALIANRESIDENTIALIQ32025

4CBRERESEARCH◎2025CBRE,INC.

KeyPerformanceMetricsbyMajorMarket

Perth

Houses(value)

Units(value)

Housesrent)

Units(rent)

Vacancy

Sept-25

$895,100

$638,900

S700/wk

$600/wk

0.7%

Adelaide

Houses(value)

Units(value)

Housesrent)

Units(rent)

Vacancy

q-0-q

+3.9%

+4.2%

0.0%

-3.2%

-0.1%

Sept-25

$912,100

$624,700

$620/wk

$520/wk

0.8%

y-0-y

+7.1%

+10.2%

+6.1%

+4.3%

+0.1%

q-0-q

+2.6%

+1.7%

0.0%

0.0%

0.0%

y-0-y

+6.1%

+6.4%

+3.3%

+5.1%

+0.2%

Melbourne

Houses(value)

Units(value)

Housesrent)

Units(rent)

Vacancy

Sept-25

$953,500

$629,000

$580/wk

$575/wk

1.8%

q-0-q

+1.0%

+0.8%

0.0%

0.0%

0.0%

y-o-y

+2.5%

+0.2%

0.0%

+4.5%

+0.1%

Brisbane

Houses(value)

Units(value)

Housesrent)

Units(rent)

Vacancy

Sydney

Houses(value)

Units(value)

Housesrent)

Units(rent)

Vacancy

Canberra

Houses(value)

Units(value)

Housesrent)

Units(rent)

Vacancy

Sept-25

$1,062,100

$755,100

$660/wk

S630/wk

0.9%

Sept-25

$1,550,600

$880,800

$780/wk

$750/wk

1.3%

Sept-25

$1,021,800

$600,400

$700/wk

$580/wk

1.6%

q-0-q

+3.3%

+4.7%

+1.5%

+1.6%

0.0%

q-0-q

+2.4%

+1.3%

0.0%

+1.4%

-0.3%

q-0-q

+2.2%

0.0%

0.0%

0.0%

+0.1%

y-o-y

+8.1%

+12.4%

+5.6%

+6.8%

-0.2%

y-0-y

+4.0%

+0.3%

+1.3%

+4.9%

-0.3%

y-0-y

+3.4%

-0.3%

+2.9%

+5.5%

-0.4%

Source:Cotality;Domain;SQMResearch

FIGURESIAUSTRALIANRESIDENTIALIQ32025

5CBRERESEARCH◎2025CBRE,INC.

SYDNEY

Sydney'spropertymarketshowedpositivemomentumthisquarter,withdwellingvaluesrisingby0.8%inbothAugustandSeptember,thelargestmonthlygainsintwoyears.Formetropolitan

Sydney,CotalitydatatoSeptember,wasshowing:

-themedianhousevalueat$1.551million,up2.4%q-0-qand4.0%highery-o-y;and

-themedianunitvalueat$880,800,up1.3%inthequarterand0.3%highery-o-y.

Thequartersawpricesincreasedespitelistinglevelsbeingslightlyabovethe10-yearaverage,indicatingstrongdemand.Thisdemandispartiallybeingdrivenbylowerborrowingcostsandisexpectedtoreceiveafurtherboostfromfirst-homebuyersfromOctober.Firsthomebuyerscannowaccesspropertiesupto$1.5millionwitha5%depositandnolendersmortgageinsurance.Whilethisisexpectedtoincreasedemand,theimpactmaybepartiallylessenedbyaneasinginnetoverseasmigration.Thestate'sannualpopulationgrowthrateslowedto1.2%intheyeartoMarch2025,downfrom2.0%intheyeartoMarch2024.Thenetintakeofoverseasmigrantshasdecreasedfrom168,100to96,800.However,thesupplysidestillpresentsasignificantchallenge.Lowforecastsupplyof11,700unitsperannumto2030isanticipatedtosustainupwardpressureonpricing,withlimitedreliefexpectedinthenearfuture.Thespreadbetweenhouseandunit

pricesremainsatarecordlevel,withunitsstillofferingasignificantaffordabilityadvantageinmanysubmarkets.

Sydney'srentalvacancyratewascriticallylowinSeptember2025,at1.3%,andhasnotrisenabove1.6%throughouttheyear.Thisisaroundhalftherateexpectedinabalancedmarket.Rentaluplifthasslowedfornow,however,whichisnotunexpectedaftertherapidgains

experiencedover2022-2024.DomaindataforSeptemberwasshowingmedianrentsat

-$780/weekforhouses,unchangedfromlastquarterand1.3%highery-0-y;and

-$750/weekforunits,up1.4%fromlastquarterand4.9%highery-0-y.

Housingsupplyremainsconstrained,hamperedbyfeasibilitychallenges,labourshortages,lowproductivity,andcomplexplanningregulations.Inresponse,thestateandlocalcouncilsare

activelypursuingmeasurestoboostsupply,suchastheNSWGovernment's$1billionPre-saleFinanceGuarantee,designedtoexpediteconstructionbyguaranteeingthepurchaseofoff-the-plandwellingsandaidingdevelopersinsecuringfinancingalongwithrezoningandupzoning

aroundtransporthubsandsimilar.However,theseeffortsareunlikelytoyieldimmediateresults.Vacancyratesareprojectedtodropaslowas1.2%bytheendofthisdecadewhichshould

supportrentalgrowthaveraging4%to5%perannum.

FIGURE10:Pricespread,houses-vs-units,GreaterSydney

Price

120%

100%

80%

60%

40%

20%

0%

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

spread(%)Medianprice($'000)

$2,100

$1,800

$1,500

$1,200

$900

$600

$300

$O

Spread(%)—一Medianhouseprice($'O00)Medianunitprice($'O00)

Source:REIA;CBREResearch

FIGURE11:Annualincreaseindwellingsandpopulation(NewSouthWales)-vs-Sydneyvacancyrate

Annualchangeindwellings/population(%)

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

-0.5%

201520162017201820192020202120222023

一Increaseindwellings(%)—Populationincrease(%)一Vacancyrate(Sydney)

Vacancyrate(%)

5.0%4.0%

3.0%

2.0%

1.0%

0.0%

-1.0%20242025

Source:ABS;SQMResearch;CBREResearch

FIGURESIAUSTRALIANRESIDENTIALIQ32025

6CBRERESEARCH◎2025CBRE,INC.

FIGURE12:NewSouthWalesresidentialcompletions-vs-dwellingtargetDwellingcompletions(rollingannual)

1993

1994

1995

1996

1997

1998

2000

2001

2002

2003

2004

2005

2006

2007

2008

0

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

021

2022

2023

2024

2025

666l

80,000

60,000

40,000

20,000

0

HousesUnitsTotalTarget

Source:AustralianFederalGovernment;ABS;CBREResearch

FIGURE13:Sydneyresidentialvacancyrateandmedianrents

Medianrent($/week)Vacancyrate(%)

$800

$640

$480

$320

$160

$O

5.0

4.0

3.0

2.0

1.0

0.0

2013201420152016201720182019202020212022202320242025

Median3brhouserent($/week)—Median2brunitrent($/week)—Vacancyrate(%)

Source:REIA;CBREResearch

TABLE1:GreaterSydneyKeyResidentialIndicators

Indicator

Value

Q-0-QChange

Y-o-YChange

Indicator

Value

Y--YChange

Medianhousevalue(September2025)

$1,550,600

+2.4%

+4.0%

Housetransfers(prelim.,yeartoJune2025)

50,951

+0.5%

Medianhouserent(Septemberqtr.2025)

$780/week

0.0%

+1.3%

Houseapprovals(yeartoAugust2025)

12,945

+3.6%

Medianunitvalue(September2025)

$880,800

+1.3%

+0.3%

Unittransfers(prelim.,yeartoJune2025)

51,007

-3.5%

Medianunitrent(Septemberqtr.2025)

$750/week

+1.4%

+4.9%

Unitapprovals(yeartoAugust2025)

20,804

+41.6%

Totalvacancy(September2025)

1.3%

-0.3%

-0.3%

Owneroccupierfinance(NSW,yeartoJune2025)

$64.7bn

+7.7%

Investorfinance(NSW,yeartoJune2025)

$49.5bn

+17.0%

Source:Cotality,REIA,SQM,Domain,AustralianBureauofStatistics

FIGURESIAUSTRALIANRESIDENTIALIQ32025

7CBRERESEARCH◎2025CBRE,INC.

MELBOURNE

Melbourne'spropertymarketisexperiencingaslowbutsteadyrecovery,withgainsthataresmallerthanthoseobservedinothercities.HousepricesinMelbournegrewtheleastofall

citiesduringthequarter,andunitpricessawthesecond-lowestgrowth,justaboveCanberra's.CotalitydataforSeptemberwasshowing:

-themedianhousevalueat$953,500,up1.0%q-0-qand2.5%highery-0-y;and

-themedianunitvalueat$629,000,up0.8%q-0-qand0.2%highery-0-y.

Recoveryisbeingsupportedbyseveralfactors,includinglowerborrowingcosts,the

introductionoffirst-homebuyerbenefitsinOctober,relativeaffordability(dwellingpricesare35%belowSydney,17%belowBrisbane,and6%belowPerthandAdelaide),continued

populationgrowth,andlimitedhousingsupply.Thisiscreatingopportunities,althoughthelessattractivetaxregulationsforinvestorscontinuetoactasaheadwind.Growthininvestor

lendinginVictoriatoJunewasstilllaggingotherstatesresults.

Whilegrowthiseasingasnetoverseasmigrationlevelspullback,Victoria'spopulationstillgrewstronglyat1.8%intheyeartoMarch2025.Thisrate,downfrom2.7%thepreviousyear,

outpacedNewSouthWales,theACT,andSouthAustralia,andmatchedQueensland'sgrowth.Victoriaisseeinganincreaseinunitapprovalsasitseekstoaddressundersupplythrough

mediumandhigh-densityprojects.Approvalsrose34%to27,200unitsintheyearleadinguptoAugust2025.ThenumberofunitscompletedintheyeartoJune2025,however,fellbelow

20,000forjustthethirdtimesince2013.

VacancyinMelbourneremainstight,sittingat1.8%forthepastfourmonths.Despitethecity'slowvacancy,rentgrowthstalledthisquarter,withDomain'sSeptemberdatashowing:

-amedianhouserentof$580/week,unchangedq-0-qandunchangedy-0-y;whilst

-themedianunitrentwasat$575/week,unchangedq-0-qand4.5%highery-o-y.

Althoughrentshavestagnatedforthetimebeing,Melbourne'srentalmarketremainsunder

pressure,withlimitedsupplyofaround9,000apartmentsperannuminthepipelineover2025-2030,accordingtoCBREforecasts.Strongpopulationgrowthwilllikelyfuelcontinuedrent

increasesinthemediumterm,withCBREforecastsaveraging5%growthperannumthroughto2030.Itremainstobeseenhowbetteraccessibilitytothepropertymarketthroughfirsthomebuyerschemeswillimpacttherentalmarket.

FIGURE14:Pricespread,houses-vs-units,GreaterMelbourne

2005

2006

2007

2008

2006

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Spread(%)—Medianhouseprice($'O00)Medianunitprice($'O00)

price($'000)

$1,200

$900

45%

$600

30%

$300

$o

Price

75%

60%

15%

0%

spread(%)

Median

.

Source:REIA;CBREResearch

FIGURE15:Annualincreaseindwellingsandpopulation(Victoria)-vs-Melbournevacancyrate

Annualchangeindwellings/population(%)

4.0%

3.0%2.0%1.0%

0.0%

-1.0%

201520162017201820192020

Increaseindwellings(%)Populationincrease(%)—Vacancyrate(Melbourne)

Vacancyrate(%)

6.0%

4.5%

3.0%

1.5%

0.0%

-1.5%

20242025

2021

2022

2023

Source:ABS;SQMResearch,CBREResearch

FIGURES|AUSTRALIANRESIDENTIALIQ32025

8CBRERESEARCH◎2025CBRE,INC.

FIGURE16:Victorianresidentialcompletions-vs-dwellingtargetDwellingcompletions(rollingannual)

1993

1994

1995

1996

1997

1998

666l

2000

2001

2002

2003

2004

2005

2006

2007

2008

2006

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

021

2022

2023

2024

2025

90,000

75,000

60,000

45,000

30,000

15,000

0

Houses

UnitsTotalTargetHigherTarget

Source:AustralianFederalGovernment;VictorianStateGovernment;ABS;CBREResearch

FIGURE17:Melbourneresidentialvacancyrateandmedianrents

Medianrent($/week)Vacancyrate(%)

$7007.0%

$6006.0%

$5005.0%

$4004.0%

$3003.0%

$2002.0%

$1001.0%

$O0.0%

201420152016201720182019202020212022202320242025

Median3brhouserent($/week)—Median2brunitrent($/week)—Vacancyrate(%)Source:REIA;CBREResearch

TABLE2:GreaterMelbourneKeyResidentialIndicators

Indicator

Value

Q-0-QChange

Y-o-YChange

Indicator

Value

Y--YChange

Medianhousevalue(September2025)

S953,500

+1.0%

+2.5%

Housetransfers(prelim.,yeartoJune2025)

59,123

+7.3%

Medianhouserent(Septemberqtr.2025)

$580/week

0.0%

0.0%

Houseapprovals(yeartoAugust2025)

23,903

-3.8%

Medianunitvalue(September2025)

$629,000

+0.8%

+0.2%

Unittransfers(prelim.,yeartoJune2025)

49,511

+1.9%

Medianunitrent(Septemberqtr.2025)

$575/week

0.0%

+4.5%

Unitapprovals(yeartoAugust2025)

21,277

+27.0%

Totalvacancy(September2025)

1.8%

0.0%

+0.1%

Owneroccupierfinance(Vic,yeartoJune2025)

$59.2bn

+9.1%

Investorfinance(Vic,yeartoJune2025)

$26.7bn

+11.0%

Source:Cotaity,REIA,SQM,Domain,AustralianBureauofStatistics

FIGURESIAUSTRALIANRESIDENTIALIQ32025

9CBRERESEARCH◎2025CBRE,INC.

BRISBANE

Brisbane'spropertymarketisfullsteamahead.Brisbaneapartmentsledthemajorcitiesinpricegrowththisquarter,whilehousescloselyfollowedPerth'sperformance.ForSeptember,Cotalitydatawasshowing:

-themedianhousevalueat$1.062million,up3.3%q-0-qand8.1%highery-0-y;whilst

-themedianunitvaluewasat$727,100,up4.7%q-0-qand12.4%highery-o-y.

ApartmentsareoutperforminghousesintheBrisbanemarket,andthiswilllikelycontinueduetoaffordabilityconstraintsandgovernmentschemessupportingtheentry-levelendofthemarket.TheAustralianGovernment5%DepositSchemewillensurethatdemandinthesub-$1million

segmentremainsstronginBrisbanepost-October.

Brisbane'sstrongpricegrowthisinpartduetoareductioninpropertylistings.IntheSeptemberquarter,Brisbane'saveragelistingswereapproximately10,900housesand4,600units,both

roughly40%belowtheir10-yearaverages

Queensland'spopulationgrowth,whileslightlylowerthanlastyear,continuestoberobustat1.8%fortheyearendingMarch2025.Netoverseasmigrationadded54,500residentsandnetinterstatemigrationadded24,000residents.Thissustaineddemand-sidepressurehaskeptBrisbane's

vacancyratelow,remainingat0.9%inSeptember2025andholdingsteadyatorbelowthislevelthroughout2025.

Unlikemostofthemajorcapitalswhichhaveseenflatrentgrowththisquarter,thesupplyimbalancemeanrentsinBrisbanecontinuetotickupwards.DomaindataforSeptemberwasshowing:

-amedianhouserentof$660/week,up1.5%inthequarterand5.6%highery-o-y;whilst

-themedianunitrentwasat$630/week,up1.6%inthequarterand6.8%highery-o-y.

Theresidentialmarketfacescontinuedupwardpressureonpricesandrentsduetoaconstrainedsupply,exacerbatedbycompetitionfrominfrastructureprojectsandtheupcomingOlympicsbuild.Despiteapprovalsaligningwithhistoricalaverages,unitcompletionsremainsignificantlybelow

peaklevelsseenin2017/2018.WhileBrisbaneanticipatesaround5,600medium/highdensity

completionsthisyear,upfromafive-yearaverageof3,500,thisfigureisinflatedbyprojectdelaysthathavepushedsome2024completionsinto2025.

CBREforecastrentgrowthtocontinue