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

Key Takeaways for Homeowners:

• Home values rose in April, despite market uncertainty.
  • The national Home Value Index recorded a third straight month of growth, with prices up 0.3% to a new record high.
  • This increase added around $2,720 to the median value of an Australian dwelling in just one month.
• Every capital city saw a lift in home values.
  • Growth ranged from a 1.1% rise in Darwin to a 0.2% lift in Sydney and Melbourne.
• However, the pace of growth slowed slightly compared to March.
  • Sentiment and auction clearance rates weakened during April, reflecting buyer and seller caution.
• Housing market conditions improved after the February rate cut.
  • But, the boost from lower rates seems to be fading, and broader economic uncertainty (like new US tariffs and the federal election) has made some households hesitant.
• Sales and new listings volumes dropped sharply.
  • Easter and ANZAC Day holidays combined with uncertainty led to the lowest Easter auction week since 2019.
• Housing values are expected to continue rising modestly in 2025.
  • With another rate cut and more political clarity after the election, slight growth in property values is anticipated.

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 1st May 2025

Sydney

• Market Performance: Sydney’s housing market demonstrated mild resilience in April 2025 amid broader national economic and political uncertainty. Dwelling values in the city ticked up by 0.2% for the month, part of a 1.0% rise over the rolling quarter. While positive, this movement was slower than other capitals like Darwin and Perth, reflecting Sydney’s already high baseline and unique challenges.
• Key Insight: Sydney’s housing market remains in a fragile but stable position. After dipping from its September 2024 peak, values have begun to inch upward again, thanks to macroeconomic shifts and policy expectations. While overall growth is modest, certain outer-ring suburbs are posting strong double-digit gains, revealing a market increasingly driven by affordability.

Read More: Latest Property Market Update for Sydney

Melbourne

• Market Performance: Melbourne’s housing market showed mild growth in April 2025, with dwelling values rising 0.2% for the month and 1.0% over the quarter. However, the broader picture reflects ongoing softness, as annual dwelling values declined by -2.2%, and remain 5.4% below the market’s peak in March 2022. This places Melbourne among the weaker performing capital city markets in year-on-year terms.
• Key Insight: Melbourne’s property market has seen modest recovery signs through early 2025, helped by rate cuts and pre-election sentiment. Yet, with annual values still in negative territory, the city continues to trail other capitals. Rental growth has also markedly slowed, potentially limiting investor enthusiasm.

Read More: Latest Property Market Update for Melbourne

Brisbane

• Market Performance: Brisbane’s housing market continues to show resilience and strength as of April 2025. With annual dwelling value growth reaching 7.8%, Brisbane stands out among the larger capital cities, trailing only behind Adelaide and Perth. The median dwelling value in Brisbane now sits at $907,864, confirming its position as one of the more robustly performing capital city markets.
• Key Insight: Brisbane continues to outperform most capital cities on both capital growth and rental returns. Its dwelling values are at record highs, and growth is broad-based across the metro area. The city’s strong fundamentals—housing demand, rising rents, relative affordability, and improving sentiment—position it well to remain a top-performing market in the short to medium term.

Read More: Latest Property Market Update for Brisbane

Adelaide

• Market Performance: Adelaide’s housing market remains among the strongest performing in the nation. As of April 2025, the city is at its peak value, marking continued resilience and demand growth. The median dwelling value in Adelaide is $825,776, with annual growth of 9.8%, second only to Perth among the capitals.
• Key Insight: Adelaide is currently one of the standout performers in the Australian property market. With its dwelling values at a historic high, strong annual growth of 9.8%, and high rental yields, the city presents a compelling case for both owner-occupiers and investors. While national uncertainties loom, Adelaide’s market fundamentals, underpinned by demand-supply imbalance and relatively high affordability compared to east coast capitals, suggest continued upward pressure on prices through 2025.

Read More: Latest Property Market Update for Adelaide

Perth

• Market Performance: Perth continues to demonstrate strong housing market performance, reaching a new record high in April 2025. The city’s residential property sector is buoyed by both demand and relative affordability compared to other capitals. With a median dwelling value of $807,728, Perth is among the mid-sized capitals that have surpassed their previous market peaks, achieving a 77.2% increase over the past five years.​
• Key Insight: Perth stands out as one of Australia’s top-performing housing markets. With double-digit annual growth, a surge in unit values, high rental yields, and resilient affordability compared to eastern capitals, it continues to attract both owner-occupiers and investors. While broader economic and policy uncertainties remain, Perth’s housing market appears well-supported to maintain upward momentum in 2025.

Read More: Latest Property Market Update for Perth

Canberra

• Market Performance: Canberra’s housing market has demonstrated moderate movement in April 2025. Dwelling values rose 0.4% over the month, placing the ACT capital in the mid-range of performance among Australian cities. The median dwelling value now stands at $864,343, with houses at $977,737 and units at $594,602.
• Key Insight: Canberra’s housing market is in a phaCanberra’s property market is in a phase of subdued recovery. Following declines from its 2022 peak, the market is showing early signs of rebalancing, with modest price rises in April and stable rental conditions. However, the city remains one of the few capitals with negative annual growth, and its path forward will hinge on broader economic shifts, including interest rate movements and federal housing policy outcomes.

Read More: Latest Property Market Update for Canberra

Hobart

• Market Performance: Hobart’s housing market in early 2025 showed modest signs of recovery after a prolonged period of decline. Dwelling values lifted 0.9% over April, contributing to a quarterly growth figure of 0.9% and a slight annual rise of 0.5%​. The median dwelling value in Hobart now sits at $664,462, reflecting its more affordable positioning compared to other capital cities​.
• Key Insight: Hobart’s housing market is navigating a delicate recovery phase. After the sharp post-peak fall, the city is now showing gentle price increases and renewed rental strength. Yet, it remains one of the few capitals still substantially below its previous price peak. Overall, CoreLogic’s data paints a picture of cautious optimism for Hobart heading into the second half of 2025, with modest growth likely but not guaranteed.

Read More: Latest Property Market Update for Hobart

Darwin

• Market Performance: Darwin’s property market has demonstrated noticeable momentum recently, leading the country with a monthly dwelling value increase of 1.1% in April. This performance contributed to a quarterly rise of 3.4% and an annual growth rate of 2.5%. Despite these gains, Darwin’s home values remain 2.7% below their all-time peak, originally recorded back in May 2014.
• Key Insight: Darwin’s property market is currently experiencing a notable rebound, outperforming many of its peers in terms of short-term value growth. Strong rental yields and affordable property prices continue to make it a compelling option for investors. However, its growth prospects will be closely tied to broader economic movements, interest rate settings, and local demand dynamics in the coming months.

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	-1.10%	Sep 24	29.70%	61.60%
Melbourne	-5.40%	Mar 22	10.50%	43.80%
Brisbane	<at peak>	<at peak>	71.10%	91.20%
Adelaide	<at peak>	<at peak>	73.40%	93.60%
Perth	<at peak>	<at peak>	77.20%	55.60%
Hobart	-11.10%	Mar 22	30.10%	86.40%
Darwin	-2.70%	May 14	28.10%	-0.50%
Canberra	-6.40%	May 22	31.50%	60.70%
Regional NSW	-0.70%	May 22	52.50%	97.50%
Regional Vic	-6.90%	May 22	32.80%	72.70%
Regional Qld	<at peak>	<at peak>	73.20%	91.50%
Regional SA	<at peak>	<at peak>	76.30%	71.50%
Regional WA	<at peak>	<at peak>	83.90%	54.60%
Regional Tas	-1.40%	May 22	49.80%	86.10%
Regional NT	-11.70%	Apr 16	-3.40%	-8.40%
Combined capitals	-0.03%	Oct 24	35.70%	61.70%
Combined regionals	<at peak>	<at peak>	58.70%	87.50%
National	<at peak>	<at peak>	40.60%	67.30%

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

April 2025 saw Australian housing values notch a modest rise of 0.3%, marking the third consecutive month of growth despite mounting uncertainty from US tariff announcements and the impending federal election. This lifted the national median dwelling value to $825,349, adding approximately $2,720 to the typical home’s price over the month. Every capital city recorded gains, though at a slower pace compared to March, suggesting the initial momentum from February’s rate cut is starting to wane.

Regional markets outperformed the capitals, a trend that has resurfaced since late 2024. Regional South Australia and Western Australia led this surge, with monthly gains of 1.5% and 1.3%, respectively. Meanwhile, Brisbane, Adelaide, and Perth continued to see some of the strongest annual growth rates among the capitals.

However, the national annual growth rate softened to 3.2%, the slowest since August 2023. Many major markets, including Sydney, Melbourne, Hobart, and Darwin, remain below their previous record highs, reflecting a lingering market recalibration.

Rental markets also continued to firm up, with national rents growing by 0.4% seasonally adjusted in April. Yet, the pace of annual rental growth has sharply moderated from 8.3% in April 2024 to just 3.6% now. In Perth, rents slowed but still posted the highest annual growth among capitals. Conversely, Sydney and Melbourne saw rental growth nearly stall.

Gross rental yields have reached a two-year high of 3.73% nationally, as housing values rose modestly while rents continued to increase.

Looking ahead, housing affordability remains severely stretched, with households needing to commit over 50% of gross income to service a mortgage on a median-priced home. First-home buyers are expected to benefit from upcoming policy measures, such as deposit guarantees and potential access to superannuation funds, but affordability constraints continue to pose a substantial barrier.

Population growth has normalised back to the decade average, slightly tempering demand pressures. However, an accumulated housing shortfall of up to 300,000 dwellings, coupled with declining new starts and rising construction costs, will likely keep upward pressure on prices despite softer demand-side indicators.

Consumer sentiment weakened in April, primarily due to international trade tensions, but may rebound if anticipated rate cuts and election outcomes restore confidence.

Overall, housing values are expected to trend higher in the short term, albeit at a softer pace than seen in early 2024. The market’s resilience appears anchored in strong lending conditions, tight labour markets, low mortgage arrears, and an enduring supply shortage.

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