For Meridian Australia, 2025 was the year the market finally shifted from hesitation to action. After several years of uncertainty, investors entered the year seeking clarity. What followed was a market that rewarded discipline, data driven decision making and a focus on long term fundamentals.

Brad summarised the shift:

“This year reminded investors that markets rarely move in straight lines. The winners were those who stayed disciplined, understood the fundamentals and acted before the headlines caught up.”

Across the country, confidence returned. First home buyers became more strategic. Key cities showed renewed strength. Investors repositioned their portfolios for the next cycle. Below is a concise overview of the themes that defined 2025 and the lessons guiding clients into 2026..

Rate Cuts and Renewed Confidence

The rate environment was the defining turning point of the year. The Reserve Bank’s cuts improved borrowing conditions and unlocked decisions that had been building quietly for months.

Brad noted:

“Rate cuts do not create demand on their own. They unlock decisions that were already forming beneath the surface.”

A New Generation of First Home Buyers

2025 confirmed a structural shift in first home buyer behaviour. Younger buyers are entering the market with strategy and long term wealth creation front of mind.

Brad observed:

“Younger buyers are moving toward long term wealth strategies rather than simply securing a roof over their head.”

This shift aligned perfectly with Meridian’s advisory approach.

Melbourne Reclaims Its Momentum

Melbourne emerged as one of the standout markets of the year. Population growth, improved rental absorption and a clear affordability advantage created a strong foundation for investors.

Brad described the resurgence.

“Melbourne was the sleeping giant of 2025. By mid year we saw momentum translate into genuine strength.”

Adam added:

“The fundamentals were strengthening quietly. That is usually where the greatest upside begins.”

Affordability and Investor Ingenuity

Affordability pressures persisted, yet investors found new ways to move forward. Equity releases, guarantee structures and targeted schemes allowed buyers to adapt with creativity.

Brad summarised:

“The deposit conversation became less about barriers and more about pathways. That shift will shape the next cycle.”

Adam echoed the sentiment.

“Affordability reframed the conversation. We focused on what clients could do, and activity increased accordingly.”

A More Strategic Investor Emerges

Tax time revealed a broader shift in investor sophistication. Clients engaged heavily in portfolio planning, yield optimisation and long term structure.

Adam noted:

“Investors were more sophisticated this year. They focused on structure, yield and long term positioning.”

Policy, Reform and the Return of Certainty

Housing policy and reforms influenced sentiment throughout the year. Yet, once the noise settled, clarity returned.

Brad highlighted:

“Reforms do not solve affordability. They simply shift the pressure points. Investors who understand this nuance make better decisions.”

Lifestyle, Hybrid Work and Location Choices

Hybrid work continued to influence demand. Suburbs offering lifestyle, connectivity and rental value outperformed consistently.

Brad noted:

“Lifestyle and connectivity remained dominant forces in where people chose to live.”

Adam reinforced:

“The return to office story is about how people live. Balanced, commuter friendly suburbs performed strongly.”

Looking Ahead to 2026

As we enter 2026, the market is positioned for continued stabilisation and selective growth. Rates are easing. Rental markets remain tight. Affordability challenges are navigable with strategic planning. Melbourne and Brisbane are at compelling stages of their cycle.

Adam summarised:

“This was not a year to speculate. It was a year to strategise.”

Brad concluded:

“The next cycle will reward investors who prioritise fundamentals, remain patient and position early.”

At Meridian Australia, that is exactly what we support clients to do.