How property markets are performing throughout Australia
Dwelling prices continue to trend upward across the nation, with the latest Home Value Index from Cotality (formerly CoreLogic) showing steady momentum in nearly all capital cities. The national median price rose 0.5% in May, contributing to a 1.7% increase over the first five months of 2025.
This growth has been broad-based, with every capital city recording at least a small rise since January. However, some cities are clearly outperforming the rest.
Perth leads the way
Perth recorded the strongest annual growth in property prices, with the city’s median price rising 8.6% in the year to May. This surge was due to robust demand, strong migration and tight housing supply. Perth’s median dwelling value is now $814,000.
Other strong performers during the year to May included:
Adelaide, which grew 7.3% to $793,000.
Brisbane, which grew 6.5% to $918,000.
Darwin, which grew 4.3% to $526,000 – a significant turnaround given that Darwin’s median price is still below its 2014 peak, despite recent growth.
By contrast, Sydney and Melbourne had weaker years:
Sydney’s annual growth rate was 1.1%, bringing the city’s median price to $1.2 million.
Melbourne experienced a 1.2% decline, to $791,000, making it the third-most affordable capital city (behind only Darwin and Hobart).
Why are prices rising?
The short answer is that supply is failing to keep up with demand, according to Cotality.
On the supply side, there continues to be an undersupply of new housing stock.
On the demand side, buyer confidence has lifted due to interest rate cuts in February and May, and the prospect of more rate cuts later in the year. Furthermore, increased migration is pushing up the number of buyers in the market.
Interestingly, Cotality noted that the gap in growth rates between capital cities has narrowed to just 9 percentage points – the smallest spread since early 2021. This suggests the market is moving in a more synchronised fashion across the country.
Contact me if you’d like help understanding what these trends mean for your property plans – whether you’re looking to buy, sell or invest.
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