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

Sydney

• • Market Performance: Sydney’s housing market stayed resilient in September 2025, with values up 0.8% for the month, 2.1% for the quarter, and 3.0% annually, lifting the median to $1.24M despite affordability constraints.

• • Key Insight: Sydney’s market sits at record highs with strong demand and solid clearance rates, but stretched affordability points to modest growth, keeping conditions competitive for buyers and yields low for investors.

Read More: Latest Property Market Update for Sydney

Melbourne

• • Market Performance: Melbourne’s housing market rose 0.5% in September 2025, lifting the median to $805,880, though growth remains modest compared with faster-rising capitals like Perth and Brisbane.

• • Key Insight: Melbourne’s market is stabilising, with values rising at a slower pace than stronger capitals. Limited supply supports prices, but affordability constraints mean only modest, steady gains ahead.

Read More: Latest Property Market Update for Melbourne

Brisbane

• • Market Performance: Brisbane’s market remains one of 2025’s strongest, with tight supply and solid demand driving the median dwelling value to $969,868.

• • Key Insight: Brisbane continues to outperform larger capitals, with low supply and strong demand driving growth. Momentum should persist into 2026, though affordability may limit the pace.

Read More: Latest Property Market Update for Brisbane

Adelaide

• • Market Performance: Adelaide’s market rose 0.9% in September 2025, taking the median to $855,998, with steady growth supported by tight supply and solid demand.
    

• • Key Insight: Adelaide’s housing market shows steady growth, with values up nearly 77% in five years. Low supply supports demand, offering stability and gradual gains into 2026.

Read More: Latest Property Market Update for Adelaide

Perth

• • Market Performance: Perth’s market stays among the strongest in 2025, with tight supply and strong demand lifting the median dwelling value to $855,267.

• • Key Insight: Perth remains a top performer, pairing affordability with fast growth and tight rentals. Strong gains should continue, though affordability risks may slow momentum.

Read More: Latest Property Market Update for Perth

Canberra

• • Market Performance: Canberra’s housing market is steady and improving. Dwelling values rose 0.7% in September to a median of $885,942, supported by tight listings and firmer buyer sentiment.

• • Key Insight: Canberra is in a slow-and-steady upswing: values are rising, houses lead units, and yields are respectable. Without a clear lift in new listings or a demand shock, expect measured gains through late 2025.

Read More: Latest Property Market Update for Canberra

Hobart

• • Market Performance: Hobart’s market is subdued, with modest growth and weaker demand keeping the median dwelling value at $683,390, among the lowest of the capitals.

• • Key Insight: Hobart’s market is steady but slow, with just 2.7% annual growth. Affordability helps, but weaker momentum points to only modest gains ahead.
    

Read More: Latest Property Market Update for Hobart

Darwin

• • Market Performance: Darwin’s market is surging, with a median of $558,595 making it the most affordable capital while also one of the fastest-growing in 2025.

• • Key Insight: Darwin is the fastest-growing yet most affordable capital, with tight supply and top rental yields driving strong momentum into 2026.

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 is ending spring on a stronger note, with the Cotality Home Value Index showing a 0.8% national rise in September 2025. Every capital city and regional area saw gains over the month, quarter, and year, though growth varied by pace. Markets like Perth, Brisbane, and Darwin led the charge, supported by tight supply and robust demand, while Sydney and Melbourne advanced more modestly.

Nationally, prices have now lifted 4.8% annually, with median values at $857,280. Listings remain well below average across all capitals, keeping competition strong and clearance rates around 70%. Demand has been boosted by lower interest rates, rising wages, and a firm labour market, with first-home buyer activity also supported by new deposit guarantee schemes.

At the same time, affordability remains a key brake, with price-to-income ratios near record highs—Sydney sitting at 9.6. Rental conditions add another layer of pressure, with vacancy rates at just 1.4% and rents re-accelerating in most cities, though growth in values has outpaced rental gains, squeezing yields.

Overall, the market is showing resilience and renewed momentum. While affordability constraints may temper growth, the balance of low supply and strong demand suggests housing values are well supported heading into 2026.