- Home value index (Source: Cotality)
The Home Value Index in Australia reported a 0.5% increase in dwelling values in May, taking the national index 1.7% higher for the year. Every capital city posted a rise, with Melbourne and Canberra being the only exceptions. The annual pace of growth slowed to 3.3%, the slowest since August 2023, due to a convergence of capital city trends. The range between the highest and lowest annual change in dwelling values narrowed to 9.8 percentage points, reflecting a slowdown in value growth across mid-sized capitals and the resilience of previously softer markets. The rise in housing values is being led by lower price tiers and regional markets, with the strongest gains in Regional SA (5.8%). Over 2,962 auctions were held across the capital cities last week, the highest volume since before Easter.
- May home prices (Source: Dr. Andrew Wilson)
The Australian housing market experienced a rebound in May 2025, with both houses and units reporting monthly growth. The RBA’s interest rate cuts in February and May contributed to the increase in buyer confidence and affordability. National capital city median house prices rose by 0.6% and were 4.5% higher than the previous year. Unit prices also grew by 0.6% and were 3.9% higher year-on-year. Melbourne and Sydney reported the most significant growth, with Melbourne house prices now flat year-on-year and Sydney unit prices up 2.7%. The outlook for 2025 remains optimistic, especially for Melbourne and Sydney, which are expected to continue their growth trajectory.
- Energy-efficient homes (Source: Sebastian Holloman)
A new report by Domain reveals that energy-efficient homes are selling for a 14.5% premium nationwide compared to non-energy-efficient properties. This trend is driven by changing buyer behaviors, as more Australians prioritize homes with lower energy bills, year-round comfort, and a lighter environmental footprint. The price premiums vary from city to city, with Melbourne and Perth having the highest premiums at 23.8% and 16.1%, respectively. Energy efficiency is becoming increasingly essential for competitively positioning a property in the market.
- Housing supply (Source: NHSAC)
A study by Ubank and Cotality revealed that in some Australian suburbs, mortgage repayments are cheaper than weekly rent. This trend is particularly strong in Darwin, where 85.7% of suburbs have a more affordable median mortgage than rent. In larger cities like Sydney, Melbourne, Brisbane, and Perth, around 0.3-2.6% of suburbs have this advantage. Rentvesting, a strategy of renting a property while owning an investment property, can be an attractive option for those who can’t afford a mortgage in their desired area. However, it comes with unique challenges, such as less security in your primary residence and additional costs.
- Australian home values (Source: Proptrack)
Australian home values reached a new record high in May, increasing by 0.39% over the month and 4.12% year-on-year. Capital city markets led the growth, with Sydney, Brisbane, Adelaide, Perth, and Darwin all at price peaks. Melbourne saw the strongest monthly rise, but remains 2.85% below its peak. Perth’s median home value of $787,000 surpassed Melbourne’s for the first time in a decade due to affordability-driven demand and Perth’s persistent outperformance. Annual growth was led by Adelaide (11.04%), Perth (8.40%), and Brisbane (8.38%). Regional prices rose 0.25% with annual growth of 5.19%. Lower interest rates have boosted borrowing capacity and buyer demand, leading to further price increases and rate cuts, causing prospective buyers to accelerate their purchasing decisions.
- New home sales (Source: Emilie Lauer)
New home sales increased by 16.5% in April 2025, reaching a 12-month high, with Western Australia experiencing the largest growth at 23.7%. The surge was attributed to the February rate cut, low unemployment, recovering real wages, and population growth. However, sales in Victoria and South Australia declined by 1.2% and 13%, respectively. The economist expects inconsistent growth across the states, with Queensland and Western Australia leading the recovery.
- Total property listings (Source: SQM Research)
The May 2025 real estate market report by SQM Research reveals a 5.9% increase in total residential property listings nationally, with new listings rising by 4.2% and older listings up by 8.8%. Distressed listings decreased by 4.2% and are now 9.9% lower than the previous year. Brisbane, Perth, and Adelaide experienced significant growth, while Sydney and Melbourne showed stability with signs of cooling in the unit market. The national market exhibits 7.2% annual growth in houses and 5.3% in units. Louis Christopher, Managing Director of SQM Research, attributes the increase in listings to renewed confidence following the federal election and a still-benign environment despite elevated interest rates.
- Melbourne property market (Source: Property Buzz)
Melbourne is currently one of the most affordable capital cities for property investment in Australia, with its median house price increasing by 0.8% in May to $782,000. This comes as the city’s property market shows signs of recovery after a prolonged downturn due to COVID-19. Melbourne’s affordability and high rental yields are expected to attract interstate migration, leading to increased buyer demand and home price growth. The city is also identified as the Australian capital most likely to experience strong population growth in the next decade. Despite the moderate price growth, Melbourne’s housing supply issues may impact future price increases. Some experts suggest that further interest rate cuts could provide the stimulus the Melbourne market needs. Rental yields on Melbourne units are currently at 5.2%, above the capital city average. Investment opportunities range from a studio apartment in the CBD to a four-bedroom home in St Kilda.
- Property markets (Source: Property Buzz)
Interest rate cuts have led to renewed price growth in underperforming Australian property markets, with Darwin, Hobart, and Canberra experiencing significant increases. Melbourne’s market has also started recovering, driven by improved affordability and borrowing capacity. Sydney’s inner west, south west, Parramatta, and Sutherland regions have seen the fastest house price growth, while Newcastle has emerged as the hottest market. However, some previously booming regions, such as Perth’s north east, Mandurah, Bunbury, and Queensland’s Mackay-Isaac-Whitsunday region, have experienced price declines or slower growth.
- Brisbane house prices (Source: Blair Jackson)
The Brisbane Olympics are expected to significantly impact the city’s real estate market, with competition for prime properties already heating up. The new Olympic stadium, to be built at Victoria Park, is predicted to boost house prices, particularly in Brisbane’s inner and middle-ring suburbs. However, Propertytology managing director Simon Pressley cautions against overly optimistic price expectations, as property markets are complex and there’s no guarantee of a property boom. Despite community opposition, the Queensland government is pushing ahead with plans for a new Olympics precinct, which will bring construction projects and skilled labor challenges. Brisbane’s median dwelling value has already increased by 7.1% in the past year, making it the second-highest growth among capital cities.
- CoreLogic Auction Results (Week ending 8 June 2025)
(Total Auction / Clearance Rate)
– Sydney: 634 / 59.9%
– Melbourne: 487 / 71.5%
– Brisbane: 134 / 58.3%
– Perth: 7 / 83.3%
– Canberra: 51 / 54.6%
– Adelaide: 84 / 60.3%
– Tasmania: NA / 0%
– Combined Capitals: 1,397 / 63.8%
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