Residential property prices could rise by just 3 per cent nationally in 2025, with anticipated rate cuts expected to revive a cooling market, according to property experts and economists surveyed by The Australian Financial Review.

A slowdown is already evident with residential prices dropping 0.1 per cent in December, the first decline at the national level in almost two years. Sydney and Melbourne led the downturn as the market struggles to absorb the large amount of stock for sale and buyers grapple with high borrowing costs.