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

Key Takeaways for Homeowners:

• Home values are rising again, up 0.5% nationally in May and 1.7% higher year-to-date.
• Growth is broad-based, with every capital city posting at least 0.4% gain last month.
• After a short dip, prices have rebounded since January 2025, with momentum picking up.
• Lower interest rates are expected to support further increases in the months ahead.
• Melbourne (-1.2%) and Canberra (-0.7%) are the only capital cities still showing annual declines.
• Growth is now more consistent across cities as previous underperformers begin to recover.

For insights on how your local market is performing and your property’s value start here. 

Property Price Growth By City

This chart shows the percentage change in property values across different locations in Australia. Select the property type, time period, and whether to include regional areas to compare market trends.

All Dwellings Houses Units Show Regional

Month

Quarter

Annual

Total Return

Median Value

Month Quarter Annual Total Return Median Value

CoreLogic Home Value Index, Released on 2nd June 2025

Sydney

• Market Performance: Sydney’s housing market continues to show steady upward momentum. In May 2025, dwelling values increased by 0.5% over the month and 1.1% for the quarter, bringing the annual change to 1.2%. These figures reflect a modest but stable recovery phase following earlier dips. Sydney’s median dwelling value now stands at $1,203,395, the highest among the capital cities.
• Key Insight: Sydney’s housing market is in a phase of measured recovery, led by strength in high-end suburbs and supported by broader macroeconomic optimism. Price growth is modest but consistent, with rental markets softening after years of pressure. While challenges like affordability remain, Sydney appears well-positioned for steady gains through the remainder of 2025.

Read More: Latest Property Market Update for Sydney

Melbourne

• Market Performance: Melbourne’s housing market in 2025 reflects a market navigating both resilience and recovery. It was one of only two capital cities (alongside Canberra) to record an annual decline in dwelling values, down 1.2% year-on-year. This softening is largely attributed to the lingering impact of high interest rates and cost-of-living pressures. Despite this, momentum has started to re-emerge. Melbourne posted a modest 0.4% rise in May, showing signs of a shift toward renewed stability.
• Key Insight: Melbourne’s housing market is showing early signs of recovery after a year of subdued growth. While still underperforming compared to other capitals, the modest gains in recent months and the potential for rate cuts position the city for gradual improvement. The market remains cautious but not stagnant. Melbourne could be poised for a more balanced trajectory in the second half of 2025—albeit without the exuberance seen in some other capitals.

Read More: Latest Property Market Update for Melbourne

Brisbane

• Market Performance: Brisbane continues to show solid momentum in the housing market, supported by broad-based demand and the national trend of improving conditions. As of May 2025, Brisbane dwelling values rose 1.0% for the month, contributing to a 12-month growth of 7.1%, outperforming many other capitals.
• Key Insight: Brisbane stands out as one of the most resilient and consistently growing property markets in Australia. With solid price gains, attractive rental yields, and top-performing suburbs, it remains a key market to watch. While national trends suggest a gradual easing of growth, Brisbane’s local dynamics—especially in outer-ring suburbs—signal continued strength into the second half of 2025.

Read More: Latest Property Market Update for Brisbane

Adelaide

• Market Performance: Adelaide’s property market has remained on a steady upward path, showing resilience and moderate strength amid broader national trends. With consistent monthly and quarterly growth, it continues to benefit from favorable conditions like improving sentiment and a relatively contained cost of living.
• Key Insight: Adelaide stands out as a consistently performing market, with strong annual growth and rising rental values. Its market is not only at its peak but also continuing to build momentum, making it an appealing destination for both homebuyers and investors. Provided macroeconomic factors align—particularly anticipated rate cuts—Adelaide is well-positioned for sustained growth through the rest of 2025.

Read More: Latest Property Market Update for Adelaide

Perth

• Market Performance: Perth continues to stand out among Australia’s capital cities, maintaining its strong upward trajectory in property values. In May 2025 alone, dwelling values in Perth rose by 0.7%, pushing quarterly growth to 1.6% and yearly growth to 8.6%—one of the highest among capital cities. The city’s median dwelling value reached $813,088.
• Key Insight: Perth is emerging as a national leader in property value growth. With strong annual gains, high-performing rental yields, and a broad range of growth suburbs, the city presents a compelling picture of sustained housing demand. If macroeconomic tailwinds hold, Perth is well-positioned to continue outperforming other capitals in the near term.

Read More: Latest Property Market Update for Perth

Canberra

• Market Performance: Canberra’s housing market has shown signs of resilience but remains relatively subdued compared to other capital cities. While national growth trends suggest a recovery and convergence across capitals, Canberra continues to tread water, with values struggling to gain strong momentum.
• Key Insight: While Canberra has not seen a sharp decline, it stands out for its lack of recovery compared to other capitals. The city is navigating a slow growth path, with limited momentum and continued softness in both sales and rental markets. Unless economic and buyer conditions shift meaningfully, Canberra may continue underperforming relative to its peers in the short to medium term.

Read More: Latest Property Market Update for Canberra

Hobart

• Market Performance: Hobart continues to demonstrate resilience within Australia’s capital city housing markets. While national trends show slowing growth, Hobart remains in positive territory with consistent price appreciation across recent months. Despite broader economic pressures, the city has avoided the downturn seen in areas like Melbourne and Canberra.
• Key Insight: Hobart’s housing market is on a stable upward trajectory. Growth is not explosive, but it is steady and balanced, supported by healthy rental yields and recovering dwelling values. With a 3.6% annual rise and positive rental performance, Hobart stands out as one of the more quietly resilient capital markets in 2025. While not immune to national pressures, its size, relative affordability, and improving returns keep it on solid ground.

Read More: Latest Property Market Update for Hobart

Darwin

• Market Performance: Darwin’s housing market has shown moderate momentum amid national fluctuations. Although not the strongest performer, Darwin has held its ground with some signs of resilience across certain metrics.
• Key Insight: Darwin has emerged as a quiet achiever in the 2025 property landscape. With strong rental yields, a competitive median price, and recent upward price momentum, it offers appealing conditions for investors and homebuyers seeking value. While not the most explosive market, it demonstrates stable fundamentals in a climate where predictability is valued.

Read More: Latest Property Market Update for Darwin

Australian Property Market Trends

Change in dwelling values over key time periods

Geography	From Peak	Peak Date	Past 5 Years	Past 10 Years
Sydney	-0.3%	Sep-24	32.3%	58.9%
Melbourne	-4.5%	Mar-22	12.8%	42.3%
Brisbane	<at peak>	<at peak>	73.6%	91.6%
Adelaide	<at peak>	<at peak>	73.7%	93.6%
Perth	<at peak>	<at peak>	80.0%	58.5%
Hobart	-10.5%	Mar-22	32.0%	87.7%
Darwin	-1.7%	May-14	30.8%	0.9%
Canberra	-6.4%	May-22	30.9%	60.5%
Regional NSW	-0.001%	May-22	53.7%	97.7%
Regional Vic	-6.1%	May-22	34.3%	73.6%
Regional Qld	<at peak>	<at peak>	74.2%	92.0%
Regional SA	<at peak>	<at peak>	78.2%	76.1%
Regional WA	<at peak>	<at peak>	85.8%	57.3%
Regional Tas	-2.1%	May-22	49.3%	94.5%
Regional NT	-10.6%	Apr-16	-2.8%	-8.6%
Combined capitals	<at peak>	<at peak>	38.1%	60.4%
Combined regionals	<at peak>	<at peak>	59.9%	88.2%
National	<at peak>	<at peak>	42.8%	66.4%

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%

Oxford Economics has also released a three year property price forecast.

City	Median Price* (Houses)	Median Price*(Units)	Total Price** (%) Growth (Houses)	Total Price ** (%) Growth (Units)
Sydney	$1.93M	$1.09M	18%	22%
Melbourne	$1.28M	$0.78M	21%	20%
Brisbane	$1.21M	$0.71M	19%	23%
Adelaide	$0.95M	$0.69M	16%	18%
Perth	$1.05M	$0.64M	30%	30%
Canberra	$1.17M	$0.75M	19%	20%
Hobart	$0.86M	$0.71M	13%	16%
Darwin	$0.70M	$0.46M	24%	26%
Combined Capitals	$1.34M	$0.87M	20%	21%

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. 

Australian Property Clock: Houses

Australian Property Clock: Units

Conclusion

Australia’s housing market continues its steady rebound, with dwelling values rising another 0.5% in May, bringing total gains for the first five months of 2025 to +1.7% nationally. This momentum is broad-based, with nearly all capital cities recording positive monthly growth.

While short-term growth has returned, the pace of annual gains has slowed, with national growth at just +3.3%, the lowest since August 2023. Melbourne and Canberra are the only capital cities with annual declines, down -1.2% and -0.7% respectively, highlighting some regional variation.

A key trend is the narrowing gap between the strongest and weakest performing capital cities, now just 9.8 percentage points—down from much wider ranges in recent years. This reflects a convergence of growth rates as slower markets like Melbourne begin to recover while high-growth markets cool slightly.

Regional markets, however, remain strong. Locations such as Regional SA and Regional Qld are experiencing robust growth, with values rising over 70% in the past 5 years and more than 90% over the past decade.

Rental growth, while still positive, is easing. House rents grew by 4.6% in Perth and 4.2% in Adelaide, while unit rents rose most in Darwin at 7.8%. Still, Sydney and Melbourne are now among the softest rental markets following previous rapid growth.

Looking ahead, market sentiment is being buoyed by expectations of interest rate cuts and greater political certainty following the federal election. The RBA is expected to begin cutting rates as inflation stabilizes, and labor markets are predicted to loosen moderately.

Yet, affordability pressures, lending constraints, and high household debt-to-income ratios remain headwinds. National dwelling values relative to income are already at record highs, which could temper future growth.

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