Australia’s Residential Property Market 2025: What You Need to Know
- Entre Shield
- Jun 14
- 2 min read
Source: CoreLogic
The Australian housing market is showing signs of synchronisation not seen in over four years. According to the latest data from Cotality’s June Housing Chart Pack, property values are rising nationwide—but at a more moderated and unified pace.
This blog breaks down the key numbers, trends, and insights driving Australia’s housing market in mid-2025.
National Market Snapshot
Australian dwelling values rose 0.5% in May 2025, taking total growth for the year to +1.7%.
This marks a solid rebound from a modest 0.4% decline earlier in the year.
Annual growth is now at 3.3%, the lowest yearly increase since August 2023—reflecting a stabilising market rather than a surging one.
Total residential property value reached $11.4 trillion by the end of May.

Growth Rates Are Converging
Australia’s capital cities are now moving in lockstep. The difference between the fastest- and slowest-growing cities has tightened to just 9.8 percentage points—the narrowest range since March 2021. This is a significant change from August 2024, when the gap between top- and bottom-performing capitals peaked at 26.1 percentage points.
What’s Driving This Convergence?
Perth, Adelaide, and Brisbane are slowing down after affordability pressures and reduced migration demand.
Melbourne, Canberra, and Hobart, previously soft, are showing signs of recovery.
Falling interest rates and improved affordability are encouraging renewed buyer activity.
The continued strength of regional areas reflects lifestyle preferences, work-from-home flexibility, and relative affordability.

Key Market Indicators
Monthly sales (May): 43,903
12-month rolling sales: 526,530
Median time on market: 34 days (up from 30)
Median vendor discount: 3.4% (down from 3.7% in Jan)
New listings (May): 35,069 nationally
Rental growth: +0.4% in May
Luxury Markets Closing the Gap
While lower price tiers still lead in most cities, premium market segments are catching up, especially in Sydney and Canberra, where the upper quartile now outpaces the lower quartile in growth. This suggests that rate cuts are reinvigorating high-end buyers, potentially unlocking more balanced growth across all price brackets.
What to Expect for the Rest of 2025
More rate cuts could stimulate stronger value growth across the board.
Affordability concerns in cities like Perth and Adelaide may continue to temper growth.
Melbourne and Hobart are well-positioned for a rebound, particularly as investor sentiment shifts.
Regional hotspots will likely remain attractive due to ongoing demand and value-for-money.
Final Takeaways
Australia’s property market is showing greater alignment and stability, not the dramatic boom-bust cycles of the past.
Capital cities are growing in sync, giving buyers and investors more predictability.
Now may be the ideal time to explore opportunities in recovering markets and value-driven regional locations.

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