April Market Insights: The Impact of Tariffs and Elections on the Property Market
As we move deeper into 2025, the investment landscape is shifting — fast. From geopolitical tensions to rising tariffs and murmurs of aggressive rate cuts, the macroeconomic backdrop is starting to favour real assets. And for savvy investors, that means property is back in the spotlight.
At Sound Property, we’ve been closely watching the data and sentiment across markets. Here’s what stood out this month — and what it means for you.
SP Insight #1: US tariffs are imposed — and they’ll hit harder than headlines suggest
With escalating trade tensions globally, we’re seeing a new wave of tariffs being rolled out across key economies. While the immediate impact is on goods and supply chains, history shows us there’s always a knock-on effect for financial markets and investor behaviour.
Takeaway: When tariffs rise, uncertainty follows — and that tends to spook the share market. Investors will start rotating out of equities and into assets that feel safer and more tangible. Traditionally, that’s property and gold.
SP Insight #2: Share market jitters will drive demand for stability
The share market has had a volatile start to the year, and with the global economy facing structural shifts, that uncertainty isn’t going away anytime soon. In contrast, residential property offers what many investors are craving right now — stability, income, and long-term capital growth.
We’re already seeing early signs of this in buyer behaviour: more enquiries, renewed interest from SMSF investors, and an uptick in off-market property transactions.
Takeaway: Property — especially in under-supplied and growth markets — is increasingly being seen as a “safe haven” investment. Just like gold, but with yield.
SP Insights #3: Rate Cuts, The Market is Expecting Them – Are You Ready?
One of the biggest narratives right now is the mounting expectation of aggressive interest rate cuts later this year. Some analysts are predicting multiple cuts before 2026, as inflation cools and economic growth slows.
For property investors, this is critical. Lower rates mean:
– Cheaper finance – improving cash flow and borrowing capacity
– Increased demand from buyers – putting upward pressure on prices
– Better yields relative to other investments like term deposits or bonds
Takeaway: If you’ve been waiting on the sidelines, now is the time to get your strategy in place. The best investments are made before the crowd rushes in — not after.
SP Insight #4: Election 2025 – First Home Buyer Promises & the Demand Dilemma
With the federal election just weeks away, both major parties are leaning heavily into housing policy — particularly for first home buyers. Labor is proposing to expand access to 5% deposit schemes, while the Liberal Party is floating changes to negative gearing that would apply specifically to first home buyer mortgages.
On the surface, these policies are designed to improve affordability and access. But critically, both are demand-side levers. They boost buying power without increasing the housing supply.
Takeaway: While well-intentioned, these measures will likely add further upward pressure on prices — especially in undersupplied markets. For investors, this reinforces the importance of getting in before policy-driven buyer demand floods back into the market. The smart play? Focus on areas with tight vacancy rates and constrained new development pipelines. These are the markets that will feel the sharpest impact from rising demand.
At Sound Property, we believe the real story in 2025 isn’t just about interest rates or macro shifts — it’s about structural undersupply meeting politically-charged stimulus. And when that happens, prices don’t just rise — they accelerate.
Final Thoughts
This month is a reminder that macroeconomic conditions can quickly shift the investment narrative. With rising tariffs, a jittery share market, and strong signals of rate cuts on the horizon, we’re entering a period where property ownership is likely to become a key wealth preservation strategy once again.
Whether you’re a first-time investor or looking to grow your portfolio, now’s the time to review your position. The conditions we’re seeing today are the early signals of a property upswing – and the smartest investors are already getting in ahead of it.
Need help identifying the right opportunities? Get in touch with the team at Sound Property – our expert buyer’s agents and research team are here to help you make informed, strategic decisions.