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.
Licensing statement: Rayne Finance ABN [70 605 100 838] is authorised under LMG Broker Services Pty Ltd Australian Credit Licence 517192. Disclaimer: (1) As with any financial scenario there are risks involved. This information provides an overview or summary only and it should not be considered a comprehensive analysis. You should, before acting in reliance upon this information, seek independent professional lending or taxation advice as appropriate and specific to your objectives, financial circumstances or needs. This publication is provided on the terms and understanding that: (2) LMG Broker Services Pty Ltd, Rayne Finance (Seed Lending Pty Ltd) and the authors, consultants and editors are not responsible for the results of any actions taken on the basis of information in this publication, nor for any error in or omission from this publication. (3) LMG Broker Services Pty Ltd, Rayne Finance (Seed Lending Pty Ltd) and the authors, consultants and editors, expressly disclaim all and any liability and responsibility to the maximum extent permitted by the law to any person, whether a purchaser or reader of this publication or not, in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication.
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