The Southern Highlands Real Estate Market in 2025: Trends and Insights

See what 2025 has to offer the Southern Highlands real estate market!

By Harry Jeffcoat

09-01-2025 |

As we enter 2025, the Southern Highlands continues to attract attention from homebuyers, investors, and renters alike. With its unique blend of natural beauty, vibrant community, and proximity to both Sydney and Canberra, the region remains one of New South Wales' most sought-after property markets. Here, we explore the key trends shaping the Southern Highlands real estate landscape in 2025 and what prospective buyers and sellers should look out for.

 

Market Trends for 2025

  1. Increased Demand for Regional Living The Southern Highlands’ charm and relaxed lifestyle continue to appeal to those looking to escape the hustle and bustle of city life. With remote and hybrid work becoming the norm, the demand for properties offering space, tranquility, and modern amenities is expected to rise further.

  2. Resurgence in High-End Properties Luxury homes and acreage properties are seeing renewed interest, particularly from buyers relocating from metropolitan areas. Features such as expansive gardens, home offices, and lifestyle amenities like pools or entertainment areas are highly coveted.

  3. Sustainable and Energy-Efficient Homes Environmental consciousness is influencing buyer preferences, with energy-efficient homes and properties equipped with solar panels, water tanks, and sustainable materials gaining popularity.

  4. Consistent Rental Market With increased migration to the region and a limited supply of rental properties, the rental market remains competitive. Tenants are seeking homes that provide value for money, with modern amenities and proximity to schools, shops, and transport.

 

Key Locations to Watch

  • Bowral: Continues to be a premium location, offering excellent dining, shopping, and cultural attractions.

  • Moss Vale: A hub for families, with strong infrastructure and growing community facilities.

  • Mittagong: Popular among first-home buyers and retirees due to its affordability and access to services.

  • Sutton Forest: Attracting those seeking lifestyle properties and rural charm.

 

Opportunities and Challenges

For Buyers:

  • Opportunity: 2025 presents a window to secure properties before prices potentially rise further due to increasing demand.

  • Challenge: Competition remains strong, particularly for well-located homes. Act decisively and ensure your finances are in order.

For Sellers:

  • Opportunity: With a competitive market and strong demand, sellers are well-positioned to achieve premium prices.

  • Challenge: Ensuring your property stands out is key. Consider professional staging and minor renovations to enhance appeal.

For Investors:

  • Opportunity: The tight rental market offers attractive yields, particularly for properties close to schools and transport.

  • Challenge: Keeping up with tenant expectations for modern features and sustainable living may require initial upgrades.

 

What to Look Out for in 2025

  1. Interest Rate Movements Watch for changes in interest rates, as they will directly impact borrowing costs and buyer sentiment.

  2. Infrastructure Developments Upcoming infrastructure projects, such as road upgrades and community amenities, could significantly boost property values in certain areas.

  3. Government Incentives Stay informed about government grants or incentives for first-home buyers or energy-efficient renovations that could influence market dynamics.

  4. Seasonal Market Variations The Southern Highlands’ market tends to experience seasonal peaks. Spring and early autumn are typically the busiest times for sales.

 

Why Choose First National Real Estate Moss Vale?

Navigating the Southern Highlands real estate market requires local expertise and a deep understanding of market trends. At First National Real Estate Moss Vale, our dedicated team is here to guide you every step of the way, whether you’re buying, selling, or renting. We pride ourselves on delivering exceptional service tailored to your unique needs.

2025 is shaping up to be another dynamic year for the Southern Highlands property market. With careful planning and the right guidance, it’s an excellent time to make your next move.

Contact us today to discuss your real estate goals for 2025!

Legal Disclaimer:

The information provided in this blog is for general informational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are advised to seek independent advice from qualified professionals regarding their individual circumstances. First National Real Estate Moss Vale does not accept any responsibility for any loss which may arise from reliance on information contained in this blog post.