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

Key Takeaways for Homeowners:

• Home values rose across most capital cities in the June quarter as supply stayed tight and interest rates fell.
• Brisbane, Perth and Adelaide led quarterly growth, while Sydney, Melbourne and Canberra posted modest increases.
• Rental growth has cooled, though yields remain elevated, attracting investor interest.
• Market conditions are balanced overall, with low stock levels and steady buyer demand supporting prices.
• The outlook is upbeat, with expected rate cuts likely to boost affordability and buyer confidence into late 2025.

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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 July 2025

Sydney

• Market Performance: Sydney’s property market showed moderate but sustained growth through Q2 2025, supported by falling interest rates and constrained housing supply. Although not among the fastest-growing capitals, Sydney remains a market of high value, with a median dwelling price of $1,210,222—the highest among Australian capitals. Sales activity in Sydney continues under relatively low turnover conditions, reflecting subdued buyer numbers and affordability pressures. Nonetheless, limited listings and stable buyer sentiment are keeping the market in balance.
• Key Insight: Sydney’s housing market in mid-2025 is defined by modest growth, restrained supply, and improving monetary conditions. While it hasn’t experienced the same rapid value surges as cities like Perth or Brisbane, the fundamentals—scarce listings, low interest rates, and economic stability—create an environment that favours continued, albeit mild, upward pressure on prices. The year ahead is likely to bring further gradual gains for Sydney, particularly if rate cuts materialise and sentiment strengthens. However, constraints around affordability and debt servicing will likely cap the speed and scale of growth.

Read More: Latest Property Market Update for Sydney

Melbourne

• Market Performance: Melbourne’s housing market has entered 2025 with cautious but steady momentum. Though growth has been more subdued than in many other capitals, Melbourne still recorded moderate gains in the second quarter amid broader national recovery. The city’s housing values are responding to falling interest rates and tight supply, but affordability constraints and weaker investor interest continue to limit the pace of growth.With a median dwelling value of $796,952, Melbourne remains one of the more affordable capital city markets when compared to Sydney, yet well above the national regional average.
• Key Insight: Melbourne’s property market is gently rising on the back of improved national housing sentiment and lower interest rates. However, it remains one of the more restrained capitals, with limited annual growth and persistent recovery from its 2022 peak. The fundamentals suggest a market in stabilisation mode. Expect gradual improvement, rather than dramatic gains, in the months ahead—especially if affordability constraints ease and rates continue to fall. For buyers and investors alike, Melbourne may present steady, lower-risk opportunities rather than aggressive capital growth.

Read More: Latest Property Market Update for Melbourne

Brisbane

• Market Performance: Brisbane continues to be one of Australia’s standout housing markets in 2025. Supported by strong population growth, tight housing supply, and high rental demand, the city has maintained robust momentum through the first half of the year. Despite affordability challenges emerging from sharp value increases in recent years, buyer activity remains resilient. With a median dwelling price of $805,084, Brisbane now edges ahead of Melbourne, marking a significant shift in capital city rankings.
• Key Insight: Brisbane’s housing market stands out for its combination of high demand, tight supply, and strong rental returns. With double-digit annual growth and a sharp rebound from pandemic-era lulls, the city is now firmly positioned as a top-performing capital. While affordability may act as a brake over time, all indicators suggest Brisbane will continue to lead on capital gains into 2026—especially if interest rates drop and housing supply remains tight. For buyers and investors alike, Brisbane remains a market of strong fundamentals and compelling opportunity.

Read More: Latest Property Market Update for Brisbane

Adelaide

• Market Performance: Adelaide’s housing market remains one of Australia’s strongest performers in 2025, continuing its impressive post-COVID momentum. Despite its smaller scale, the city has shown exceptional price resilience and growth, supported by relative affordability, tight housing supply, and solid population gains. With a median dwelling value of $741,142, Adelaide is still more accessible than the eastern capitals, which helps sustain broad demand.
• Key Insight: Adelaide stands out as one of the most consistent and resilient housing markets in the country. With solid annual gains, tight supply, and balanced rental conditions, it presents a stable growth story supported by underlying fundamentals. The outlook suggests further price increases, albeit at a steadier pace than the explosive growth seen in 2022. For buyers and investors, Adelaide remains a high-performing, lower-volatility market with long-term appeal.

Read More: Latest Property Market Update for Adelaide

Perth

• Market Performance: Perth has firmly established itself as Australia’s fastest-growing capital city housing market in 2025. Strong interstate migration, extremely low housing supply, and relative affordability have created intense competition across the market. With a median dwelling value of $757,399, Perth remains one of the more accessible capital cities despite its rapid growth, attracting both homebuyers and investors alike.
• Key Insight: Perth’s housing market is on a rapid upward trajectory, supported by strong fundamentals: low supply, high demand, healthy rental returns, and ongoing affordability relative to other capitals. Its 18.3% annual growth rate places it clearly ahead of the pack, and the outlook suggests further gains are likely. For buyers and investors, Perth currently offers one of the most dynamic and rewarding real estate environments in the country.

Read More: Latest Property Market Update for Perth

Canberra

• Market Performance: Canberra’s housing market in 2025 has remained relatively stable, though less dynamic than many other capital cities. The city’s dwelling values are recovering modestly after earlier softness, and while supply and demand are reasonably balanced, affordability remains a constraint. The median dwelling value in Canberra stands at $842,402, keeping it among the more expensive markets nationally, behind only Sydney and Brisbane.
• Key Insight: Canberra’s market is characterised by balance—between buyers and sellers, supply and demand, and growth and affordability. While it lacks the heat of Perth or Brisbane, it also avoids the volatility. For those seeking steady performance in a relatively low-risk environment, Canberra continues to offer consistency. Modest capital gains and reasonable rental returns make it a viable long-term hold, particularly in outer-ring suburbs where value remains accessible.

Read More: Latest Property Market Update for Canberra

Hobart

• Market Performance: Hobart’s housing market remains in a subdued state in 2025, after experiencing a significant boom followed by a marked correction. While other capital cities have begun strong recoveries, Hobart continues to lag behind, impacted by slowing population growth, affordability fatigue, and a lack of major economic momentum. The city’s median dwelling value stands at $668,174, keeping it among the more affordable capital markets—but still high relative to local incomes.
• Key Insight: Hobart’s property market is in a holding pattern. After a deep correction, the city is seeing some signs of bottoming out, but not enough momentum to spark a genuine recovery. For now, Hobart represents a slower-moving, lower-volatility market, offering moderate yields and steady, if subdued, conditions. Investors and buyers may find value, but should temper expectations around short-term capital growth.

Read More: Latest Property Market Update for Hobart

Darwin

• Market Performance: Darwin continues to display a mixed housing market in 2025. While values have remained mostly flat over the past year, rental conditions are tight and investor yields remain high. However, growth momentum remains weak, and the market shows signs of plateauing rather than entering a strong upswing. Darwin has the lowest median dwelling value of all capital cities at $496,228, offering one of the most affordable entry points for buyers in the country.
• Key Insight: Darwin’s property market is steady but lacks momentum. Prices are essentially flat, and while rental yields are strong, capital gains are minimal. The city remains a low-cost, high-yield option for investors but is unlikely to deliver significant short-term growth. For buyers seeking affordability and income stability, Darwin remains appealing. But for those chasing capital growth, other cities may offer more immediate opportunity.

Read More: Latest Property Market Update for Darwin

Australian Property Market Trends

Change in dwelling values over key time periods

Region	From Peak	Peak Date	Past 5 Years	Past 10 Years
Sydney	<at peak>	<at peak>	34.4%	56.7%
Melbourne	-3.9%	Mar 22	14.3%	40.6%
Brisbane	<at peak>	<at peak>	75.1%	92.5%
Adelaide	<at peak>	<at peak>	74.7%	94.4%
Perth	<at peak>	<at peak>	81.1%	60.4%
Hobart	-10.2%	Mar 22	31.3%	86.0%
Darwin	<at peak>	<at peak>	34.3%	4.2%
Canberra	-5.3%	May 22	32.1%	62.4%
Regional NSW	<at peak>	<at peak>	53.1%	96.8%
Regional Vic	-5.7%	May 22	34.9%	74.3%
Regional Qld	<at peak>	<at peak>	75.7%	94.5%
Regional SA	<at peak>	<at peak>	79.9%	77.6%
Regional WA	<at peak>	<at peak>	89.9%	58.9%
Regional Tas	-1.8%	May 22	48.6%	96.4%
Regional NT	-9.5%	Apr 16	0.4%	-5.2%
Combined capitals	<at peak>	<at peak>	39.8%	59.4%
Combined regionals	<at peak>	<at peak>	60.5%	89.1%
National	<at peak>	<at peak>	44.3%	65.6%

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 to display resilience and growth diversity across capital and regional markets. Most capital cities posted gains over the June quarter, supported by tightening supply and the first signs of interest rate relief. While cities like Perth, Brisbane, and Adelaide are driving much of the national momentum, even previously subdued markets such as Sydney and Melbourne are seeing moderate recovery.

Regional areas have also remained strong, particularly in Queensland and South Australia, where affordability and lifestyle appeal continue to attract steady demand.

Rents have generally stabilised after the post-pandemic surge, yet yields remain historically high, especially in smaller capitals like Darwin and Perth, keeping investors engaged despite softening rental growth in major cities.

Looking ahead, the housing outlook remains positive. With inflation easing and interest rate cuts on the horizon, buyer sentiment is likely to strengthen further into late 2025. However, challenges remain—affordability continues to weigh on some markets, and construction bottlenecks are limiting new housing supply.

Overall, Australia’s housing market is transitioning into a phase of measured, broad-based growth, underpinned by tight listings, improving affordability, and resilient demand. It’s a landscape that rewards both patient homeowners and long-term investors.

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