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

Key Updates for Homeowners

• Home values increased by 0.3% in February, breaking a short downturn. Melbourne and Hobart led with +0.4% growth.
• Premium housing markets are rebounding in Sydney and Melbourne, as high-value properties see the strongest gains.
• Regional housing markets continue to grow, with values up 0.4% monthly and 1.0% quarterly.
• Fewer homes are hitting the market, with new listings down 4.7% year-over-year, potentially driving prices higher.
• Lower interest rate expectations are improving buyer sentiment, leading to stronger auction clearance rates.

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 3rd March 2025

Sydney

• Market Performance: Sydney’s housing market rebounded in February 2025, recording a 0.3% monthly increase in home values. This shift marks a turnaround from the minor downturn of previous months, largely driven by higher-end properties regaining value. Improved buyer sentiment—influenced by expectations of interest rate cuts—has played a key role in boosting market conditions.
• Key Insight: Sydney’s property market is on a recovery path, with higher-end properties benefitting the most. Price growth is expected to remain moderate, driven by improving sentiment, interest rate adjustments, and constrained new listings. However, affordability challenges and higher inventory levels suggest that the market will not return to rapid appreciation in the short term.

Read More: Latest Property Market Update for Sydney

Melbourne

• Market Performance: The Melbourne property market showed signs of recovery in February 2025, marking a 0.4% increase in home values, ending a 10-month decline. This rise was primarily driven by higher-end properties, aligning with historical trends where premium markets respond more significantly to shifts in interest rates.
• Key Insight: Melbourne’s property market is transitioning, with early signs of recovery led by high-value homes. While challenges persist, including weak annual growth and rental softening, lower interest rates and reduced supply may drive gradual market improvement throughout 2025.

Read More: Latest Property Market Update for Melbourne

Brisbane

• Market Performance: Brisbane’s property market continues to show moderate growth, with home values rising 0.2% in February and 0.9% over the past quarter. However, its growth rate has slowed, with Melbourne and Hobart surpassing its monthly increase. Despite this, Brisbane remains one of the stronger-performing markets over the past year, reflecting a resilient demand amid shifting economic conditions.
• Key Insight: While Brisbane remains one of Australia’s strongest-performing capital cities, its rate of growth is tapering compared to previous highs. Limited supply, cooling rental demand, and affordability constraints will shape its trajectory in 2025. However, its long-term fundamentals remain robust, positioning it for sustained, if slower, growth.

Read More: Latest Property Market Update for Brisbane

Adelaide

• Market Performance: The Adelaide housing market continues to show strong price growth, maintaining its position among the best-performing capital cities in Australia. Although monthly growth was moderate (0.3% in February), the rolling quarterly gain of 1.2% keeps Adelaide ahead of most other cities. The market remains resilient, supported by low housing supply and steady demand.
• Key Insight: Adelaide remains a standout market, demonstrating resilience, affordability, and strong investment appeal. With limited housing supply and stable demand, prices are likely to continue rising at a controlled pace, offering consistent returns for both homeowners and investors.

Read More: Latest Property Market Update for Adelaide

Perth

• Market Performance: Perth’s housing market remains resilient, with home values increasing 0.3% in February. While growth has slowed compared to other mid-sized capitals like Adelaide and Brisbane, annual value growth stands at 14.3%, making Perth one of the strongest performers over the past year.
• Key Insight: Despite recent slower growth, Perth remains one of Australia’s strongest housing markets. Tight supply, high rental yields, and long-term value appreciation provide strong fundamentals, though affordability and population trends will influence future movements.

Read More: Latest Property Market Update for Perth

Canberra

• Market Performance: The Canberra property market experienced a modest recovery, with dwelling values rising by 0.2% in February. However, over the past three months, values declined by 0.8%, and annual performance remained negative at -0.9%. Despite the downturn, buyer sentiment appears to be improving, partially due to expectations of lower interest rates.
• Key Insight: Canberra remains in a weak but stabilizing phase, with mild price rebounds but lingering annual declines. The oversupply of listings gives buyers an advantage, while low rental yields signal continued investor caution. The market’s future trajectory will largely depend on interest rate movements and demand shifts.

Read More: Latest Property Market Update for Canberra

Hobart

• Market Performance: Hobart saw modest recovery in February 2025, with dwelling values rising 0.4% after previous declines. However, over the last three months, the market remains slightly down at -0.1%, reflecting ongoing volatility. Despite this, sentiment is improving, potentially signaling a shift in market conditions.
• Key Insight: Hobart’s market is transitioning from decline to stabilization, with improved buyer confidence but continued price softness. Investors may find rental yields appealing, while buyers can take advantage of the higher stock levels to secure better deals. Further recovery will depend on economic conditions and interest rate movements.

Read More: Latest Property Market Update for Hobart

Darwin

• Market Performance: Darwin’s housing market showed slight weakness, with a -0.1% monthly decline in dwelling values, in contrast to most capital cities that recorded growth. However, on a quarterly basis, Darwin experienced a 0.7% rise, and annual growth stood at 1.5%.
• Key Insight: Darwin’s market is relatively steady but underperforming compared to other capital cities. While high rental yields make it attractive for investors, sluggish price growth and weakening demand pose challenges. Future performance will depend on interest rate movements and population trends.

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	-1.60%	Sep 24	28.20%	67.20%
Melbourne	-6.40%	Mar 22	8.20%	46.90%
Brisbane	<at peak>	–	69.70%	90.70%
Adelaide	<at peak>	–	73.80%	93.30%
Perth	<at peak>	–	75.90%	54.70%
Hobart	-11.90%	Mar 22	29.20%	87.10%
Darwin	-5.90%	May 14	28.40%	-2.00%
Canberra	-7.10%	May 22	31.00%	60.20%
Regional NSW	-1.90%	May 22	51.70%	97.70%
Regional Vic	-8.00%	May 22	32.30%	73.30%
Regional Qld	<at peak>	–	70.90%	88.90%
Regional SA	<at peak>	–	72.10%	66.80%
Regional WA	<at peak>	–	79.10%	51.30%
Regional Tas	-2.40%	May 22	49.70%	92.40%
Regional NT	-10.50%	Apr 16	-1.90%	-7.60%
Combined capitals	-0.60%	Sep 24	34.00%	64.80%
Combined regionals	<at peak>	–	57.20%	86.20%
National	-0.10%	Oct 24	38.90%	69.50%

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, the CoreLogic Home Value Index for March 2025 highlights a subtle but broad-based re-acceleration in housing values across Australia, reversing the short-lived downturn experienced over the previous months. Improved market sentiment, driven by expectations of lower interest rates, has played a key role in supporting this shift.

While Melbourne and Hobart led the monthly gains, mid-sized capitals such as Brisbane, Adelaide, and Perth have started to experience a slowdown in growth. The return to price increases in Sydney and Melbourne is largely concentrated in premium market segments, which tend to be more sensitive to interest rate changes. Regional markets have continued to show resilience, with values rising at a slightly stronger pace than in capital cities.

Despite these positive trends, challenges remain. Borrowing capacity has not significantly improved, and the current rate-cutting cycle is expected to be gradual. Additionally, factors such as declining overseas migration and a slowdown in new housing supply may shape market dynamics in the months ahead.

Looking forward, markets that have undergone deeper corrections, such as Melbourne, Hobart, and the ACT, may be well-positioned for stronger rebounds due to their improved affordability. However, inventory levels remain a critical factor, with buyers in some cities benefiting from higher listing counts, while those in tight markets like Perth, Adelaide, and Brisbane face continued supply shortages.

Ultimately, while the housing market has entered a recovery phase, the pace and sustainability of growth will depend on further interest rate movements, consumer sentiment, and broader economic conditions.

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