SBP February 2025 Market Update
February Rental Market Update & Insights
Hello and welcome to SBP Realty’s February Rental Market Update! The Reserve Bank of Australia has just reduced the cash rate to 4.10%, making borrowing more affordable and setting the stage for significant changes in the rental market. At SBP Realty, we’re here to help you navigate these developments and seize new opportunities in your real estate journey.
Key Insights from the Rental Market (February 2025)
- Rental Growth Eases: National rent values increased by just 0.4% over the final three months of 2024, the smallest change recorded in a December quarter since 2018.
- Annual Increase: Over the year, rents rose by 4.8%, a slowdown compared to the 8.1% surge in 2023.
Foreign Buyer Policy Changes
- Ban on Purchasing Existing Homes: From April 1, 2025, to March 31, 2027, foreign buyers, including temporary residents, cannot buy existing homes in Australia.
- Increased Surcharges: Effective January 1, 2025, foreign property buyers will face higher taxes: the duty surcharge rises to 9% (from 8%), and the land tax surcharge increases to 5% (from 4%).
- Higher Withholding for Foreign Sellers: Starting January 1, 2025, when foreign residents sell property, buyers must withhold 15% of the sale price (up from 12.5%) and remit it to the ATO. This applies to all property sales, as the previous $750,000 threshold has been removed.
