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Property expert and bRight Agent founder cautions against investing in property in 2025

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A property expert has warned Australia’s property market could be a ‘dangerous’ purchase in 2025, with investors risking hundreds of thousands of dollars.

An Australian real estate expert has warned Australians to avoid investing in property this year, given a softening real estate market and dropping house prices.

In a recent blog post shared by property tech app bRight Agent, founder Aaron Scott said “substantial growth” in house prices over the last two years would likely not continue.

While he said the market dynamics “don’t really matter as much” for owner-occupiers, he urged property investors to reconsider real estate, stating there would were other less risky avenues.

“It’s dangerous to think that just because property has been hot over the past year and a half, that it will continue to be so over the next year or two,” he said.

“There are already signs of weakness in the major capitals and signs of slowing growth in the smaller capitals.

“The real estate market is definitely softening – especially from an investment point of view.”

Property expert and bRight Agent founder cautions against investing in property in 2025

bRight Agent founder Aaron Scott said early indicators suggested property prices would be precarious in 2025. Picture: NewsWire/ Seb Haggett

House prices also dropped for the first time in two years according to recent property data from PropTrack.

Nationally, house prices were down 0.17 per cent in December, led by drops in Melbourne (0.53 per cent down in monthly growth) and regional Victoria (2.49 per cent).

Mr Scott said overall real estate prices over the last 18 months had “reverted to the mean,” or the middle.

“Mean reversion implies that higher prices will weaken somewhat while at the same time cheaper places will increase in value,” he said.

Property expert and bRight Agent founder cautions against investing in property in 2025

bRight Agent founder Aaron Scott (right) said investors shouldn’t assume house prices would continue to rise. Picture: Supplied

He said this was evident in capital cities, particularly in Perth.

“The Perth real estate market flatlined for a decade, so it’s unsurprising that people are seeking out these more affordable places now and prices are going through the roof.”

However, mean reversion is a “double edged sword” which does not guarantee sustainable increases in house prices, and means “prices will inevitably slow,” Mr Scott warned.

“For example as Perth property values increase, they get less attractive at the same time and prices will inevitably slow,” he said.

“For this reason, going forward, it would be ludicrous to assume that growth over the next year or two will mirror growth over the past couple of years.”

According to the most recent PropTrack data, Perth property prices increased by 17 per cent in 2024, and 0.39 per cent in December alone.

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