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

Key Updates for Homeowners

• After a brief decline, national property values rose by 0.4% in March, marking the second month of gains and setting a new record high.
• Improved buyer sentiment and a slight lift in borrowing capacity, following the February interest rate cut, helped reverse the downtrend.
• Sydney and Melbourne values are rising again, with Sydney now just 1.4% below its peak and Melbourne still down 5.6% despite recent gains.
• Despite gains, affordability remains tight. A typical household now needs to spend over 50% of their gross income on mortgage repayments for a median-priced home.

• Regional areas continue to outperform capital cities overall, with WA and QLD leading annual growth — some areas saw values rise over 20%.

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 April 2025

Sydney

• Market Performance: Sydney’s housing market showed renewed momentum in early 2025, reversing part of the decline experienced in late 2024. Following a -2.2% drop from September 2024 to January 2025, values have now risen for two consecutive months, bringing the market to just -1.4% below its record high. This suggests an encouraging, albeit cautious, market recovery.
• Key Insight: Sydney is recovering steadily but cautiously. The city’s high prices and low rental yields reflect a premium, owner-occupier-led market rather than an investor-driven one. Though momentum is building, significant headwinds mean a material growth surge is unlikely without more substantial easing in affordability or financing conditions.

Read More: Latest Property Market Update for Sydney

Melbourne

• Market Performance: Melbourne’s property market is showing signs of a modest recovery after a prolonged downturn. While home values have increased over the past two months, they remain 5.6% below their March 2022 peak. In March alone, values rose 0.5%, following a 0.4% increase in February, signaling an early but cautious turnaround in buyer sentiment.
• Key Insight: Melbourne’s market is gently recovering, though still lagging behind its previous highs and national peers. A sustained recovery will depend on how broader economic conditions evolve—particularly interest rates, wage growth, and housing supply. For now, the city’s property market appears to be stabilizing, with cautious optimism ahead.

Read More: Latest Property Market Update for Melbourne

Brisbane

• Market Performance: Brisbane remains one of Australia’s strongest-performing capital cities in 2025. As of March, it reached a new record peak in dwelling values, reflecting ongoing buyer interest and market momentum. The median dwelling value sits at $899,824, with values growing across both houses and units.
• Key Insight: Brisbane continues to stand out nationally with robust price growth, a healthy rental market, and broad-based buyer demand. While a significant upswing may be limited by broader economic pressures, the city remains well-positioned for stable performance through 2025.

Read More: Latest Property Market Update for Brisbane

Adelaide

• Market Performance: Adelaide continues its strong upward trajectory, recording an annual dwelling value growth of 11.0%—one of the highest among the capitals. The median dwelling value stands at $827,675, placing it in the mid-range nationally. Adelaide is also currently at its market peak, reflecting sustained strength in local property conditions.
• Key Insight: Adelaide stands out as one of Australia’s most robust and consistent housing markets. Strong price growth, high rental yields, and broad regional performance paint a positive picture for both homeowners and investors. While macroeconomic conditions may temper future gains, Adelaide’s fundamentals remain solidly supportive of ongoing stability and modest growth.

Read More: Latest Property Market Update for Adelaide

Perth

• Market Performance: Perth continues to stand out in Australia’s housing market, showing strong long-term growth despite recent moderation. Home values are down just -0.05% from their October 2024 peak, but still up 75.4% over the past five years, leading all capital cities in that timeframe. The median dwelling value now sits at $806,205.
• Key Insight: Perth remains one of Australia’s most dynamic housing markets, offering a blend of strong historical gains, solid rental returns, and relative affordability. While near-term growth may be modest, the city’s structural strengths and investment appeal make it a standout among capital cities moving forward.

Read More: Latest Property Market Update for Perth

Canberra

• Market Performance: Canberra’s housing market remains subdued, with values showing only a modest monthly rise of 0.2% in March 2025. Despite this slight improvement, the quarterly trend was negative at -0.1%, and over the past year, dwelling values declined -0.5%. The median dwelling value sits at $854,398, reflecting the city’s relatively high price point compared to other capitals.
• Key Insight: Canberra’s housing market is in a phase of stabilization, not resurgence. While the long-term fundamentals remain relatively strong, current indicators point to a muted outlook, with limited upside in the short term. Investors and buyers may benefit from watching for signs of broader sentiment shifts or monetary easing to guide future engagement in this market.

Read More: Latest Property Market Update for Canberra

Hobart

• Market Performance: Hobart stands out as the only capital city to record a monthly decline in dwelling values in March 2025, with a -0.4% fall. While other capitals benefitted from improved sentiment and the effects of interest rate cuts, Hobart’s market remains subdued. Its median dwelling value sits at $657,059.
• Key Insight: Hobart’s housing market remains in a soft patch, showing only minimal short-term improvement. While rental conditions are firming, capital growth continues to underperform. Unless macro conditions like interest rates and consumer sentiment provide a stronger tailwind, Hobart is likely to lag the broader national recovery for now.

Read More: Latest Property Market Update for Hobart

Darwin

• Market Performance: Darwin’s housing market showed strong momentum in early 2025, with a 1.0% monthly increase in dwelling values for March—the highest among capital cities. This growth suggests improving sentiment and a resilient local market, supported by more favorable borrowing conditions post the February rate cut.
• Key Insight: Darwin is showing short-term strength and signs of renewed optimism, leading the monthly growth rates among capital cities. Its affordable entry point, rising returns, and improving sentiment position it as a potential opportunity, especially for yield-focused investors. Yet, long-term caution is warranted due to its historical underperformance and continued lag behind peak levels.

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	-1.40%	Sep 24	28.00%	64.30%
Melbourne	-5.60%	Mar 22	9.30%	45.60%
Brisbane	<at peak>	<at peak>	69.30%	90.80%
Adelaide	<at peak>	<at peak>	74.20%	94.30%
Perth	-0.05%	Oct-24	75.40%	54.70%
Hobart	-12.00%	Mar 22	27.60%	86.70%
Darwin	-4.10%	May 14	27.80%	-1.00%
Canberra	-6.80%	May 22	30.30%	59.80%
Regional NSW	-1.30%	May 22	51.50%	97.00%
Regional Vic	-7.30%	May 22	32.30%	72.70%
Regional Qld	<at peak>	<at peak>	71.30%	89.80%
Regional SA	<at peak>	<at peak>	75.50%	68.50%
Regional WA	<at peak>	<at peak>	79.70%	53.40%
Regional Tas	-1.30%	May 22	50.00%	95.50%
Regional NT	-9.70%	Apr 16	-1.70%	-7.40%
Combined Capitals	-0.40%	Sep 24	34.10%	63.20%
Combined Regionals	<at peak>	<at peak>	57.40%	86.50%
National	<at peak>	<at peak>	39.10%	68.30%

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

In conclusion, while Australia’s housing market has seen a modest rebound with values reaching new record highs in March, the outlook remains cautiously balanced. Factors such as improved consumer sentiment, easing inflation, and a resilient labour market are supporting conditions, yet persistent affordability issues, tight credit policies, and subdued population growth are acting as constraints. With the rate-cutting cycle expected to be gradual and housing supply still limited, any sustained upswing in values is likely to remain moderate and uneven across regions.

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