Australian Property Market – Prices, Trends, Forecast [November 2025]

Sydney

• • Market Performance: Sydney’s housing market grew steadily in October 2025, with values up 0.7% for the month and 4.0% annually, lifting the median to $1,256,156. The recovery, underway since the February rate cut, marks a clear rebound from late 2024’s slowdown.

• • Key Insight: Sydney’s housing market remains steady and resilient, supported by strong demand, limited supply, and earlier rate cuts. Yet affordability pressures and rising costs may slow growth into 2026.

Read More: Latest Property Market Update for Sydney

Melbourne

• • Market Performance: Melbourne’s housing market continued a steady recovery in October 2025, with values up 0.9% for the month and 3.3% annually, lifting the median to $818,975. Though slower than Brisbane or Perth, growth remains broad and supported by renewed buyer and investor confidence.

• • Key Insight: Melbourne’s housing market is steadily recovering from its early-2020s slump. Prices are rising modestly, led by affordable suburbs. While economic pressures may limit short-term growth, strong demand and tight supply point to gradual gains through 2026. The market’s rebound is stable and affordability-driven, not speculative.

Read More: Latest Property Market Update for Melbourne

Brisbane

• • Market Performance: Brisbane’s housing market remains one of Australia’s strongest, with values up 1.8% in October and 10.8% annually, lifting the median to $992,864. Growth is driven by population gains, tight supply, and solid buyer demand.

• • Key Insight: Brisbane remains a national frontrunner, powered by strong demand and scarce supply. Double-digit growth has pushed values to record highs, though affordability pressures and construction limits may slow momentum. The market’s rise in 2025 is robust, steady, and grounded in real demand.
    

Read More: Latest Property Market Update for Brisbane

Adelaide

• • Market Performance: Adelaide’s housing market stayed steady through late 2025, with values up 1.4% in October and 6.7% over the year. The median reached $867,681, keeping it among the more affordable capitals, supported by tight supply and consistent demand.
    

• • Key Insight: Adelaide’s market remains resilient, with steady gains driven by tight supply and firm demand. Despite national headwinds, the city’s balanced conditions and stable yields keep it one of the most sustainable capitals heading into 2026.

Read More: Latest Property Market Update for Adelaide

Perth

• • Market Performance: Perth remains Australia’s fastest-growing housing market, with values up 1.9% in October and 9.4% over the year to $884,471. Driven by strong migration and limited supply, its momentum shows little sign of slowing into 2026.

• • Key Insight: Perth’s market remains robust, fueled by tight supply, solid rental yields, and steady demand. Though growth may moderate, it stands out as one of Australia’s most stable and resilient performers heading into 2026.

Read More: Latest Property Market Update for Perth

Canberra

• • Market Performance: Canberra’s market saw modest, steady gains in 2025, with values up 3.2% annually to a median of $877,937. While growth trails other capitals, it marks a stable recovery from the post-2022 slowdown.

• • Key Insight: Canberra’s housing market remains stable and balanced, with steady values and firm rental demand. Though growth lags faster-rising capitals, tight supply and solid employment underpin a slow but sustainable outlook into 2026.

Read More: Latest Property Market Update for Canberra

Hobart

• • Market Performance: Hobart’s market shows gentle recovery, with annual growth of 2.4% lifting the median to $686,262. Though among the slowest-growing capitals, it reflects a stable phase following earlier downturns.

• • Key Insight: Hobart’s market remains steady but subdued, with mild price growth and solid rental yields supporting stability. It’s in a mature phase of recovery, likely to see gradual, measured gains through 2026.

Read More: Latest Property Market Update for Hobart

Darwin

• • Market Performance: Darwin remains Australia’s top performer, with values soaring 15.4% annually to about $564,000. Strong investor interest, high yields, and tight supply continue to fuel exceptional growth and record returns.

• • Key Insight: Darwin remains Australia’s standout market, combining rapid value growth with strong rental yields and record returns. Investor demand and tight supply keep momentum high, positioning it among the nation’s most resilient performers.

Read More: Latest Property Market Update for Darwin

Australian Property Market Trends

This table highlights how dwelling values have changed across Australia over the past 5 years and since the first interest rate cut in February, showing which markets are still climbing and which ones have softened from their peak. It’s a helpful snapshot for understanding long-term growth and current momentum especially for identifying markets that are peaking and slowing.

Australian Property Market Forecast

The Australian banks forecast:

• • ANZ predicts a 5-6% increase in capital city property prices in 2024, with Brisbane expected to see the highest rise at 9-10%, Perth property values could go up by 1-11%, Sydney by 4-5%, and Melbourne prices by 2-3%.

• • CBA forecasts a 5% rise in capital city prices, with some variations: Brisbane is anticipated to grow by 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.

• • NAB projects a 5.4% average increase across the capitals, with Brisbane expected to see a 6.5% rise, Perth and Adelaide by 6.2%, Melbourne by 5.5%, Sydney by 5%, and Hobart remaining flat.

• • Westpac expects a 6% growth across the combined capitals, with Perth leading at 10%, followed by Brisbane at 8%, Sydney at 6%, Adelaide at 4%, and Melbourne at 3%

For the second half of 2024 this means:

• • Modest value increases expected: The national housing market is likely to see modest value increases through the end of 2024, driven by a persistent imbalance between supply and demand.

• • Affordability constraints: Affordability pressures, high interest rates, and cost-of-living challenges are expected to temper growth, especially in higher-priced markets.

• • Sustainability of growth: High growth levels in cities like Perth, Adelaide, and Brisbane may be difficult to sustain as affordability becomes more stretched.

• • Shift to affordable segments: Demand is increasingly focused on more affordable market segments, with significant growth in the lower quartile of the market.

• • Construction Sector Constraints: Ongoing issues in the construction sector, including labor shortages and competition from public infrastructure projects, are likely to keep supply constrained, supporting property values in the longer term.

Australian Property Clock Update

Each month, independent property valuation firm Herron Todd White (HTW) publishes a residential property report that assesses the performance of Australia’s 50 largest markets. HTW’s Property Clock grades each market based on current and predicted performance to determine whether it’s rising, falling, peaking or bottoming out.

Conclusion

Australia’s housing market ended October 2025 with its fastest pace of growth in more than two years. National dwelling values rose 1.1% for the month and 6.1% over the year, as demand strengthened following the February rate cut and supply stayed well below average levels.

Among the capitals, Perth, Brisbane, and Darwin led the upswing, supported by affordability and investor demand. Darwin stood out with 15.4% annual growth and the highest total return at 23.1%, while overall listings remained 18% below normal, keeping market conditions tight. The expanded 5% deposit guarantee scheme also helped lift first-home buyer activity.

Rents continued to climb, rising 0.5% per month, with Darwin and Hobart recording the strongest annual growth. However, yields slipped to 3.4% in capitals and 4.3% regionally as prices rose faster than rents.

While affordability, inflation, and construction costs could slow momentum, demand remains resilient. With investors making up 38% of new lending and housing supply still constrained, the market is likely to stay robust but uneven as it moves into 2026.