National Home Prices Hit Record High as Interest Rates Ease
Australian home values continued their upward trajectory in June, rising 0.4% nationally and reaching a new record high. This marks a 4.6% increase year-on-year—equivalent to a $40,900 gain—driven by falling interest rates and renewed buyer confidence.
Capital Cities Lead the Way
Price growth was broad-based across the country, with all capital cities recording gains in June:
- Adelaide led the charge with a 0.6% monthly increase and remains the top-performing capital over the past year, with values up 9.8%.
- Sydney and Hobart both saw solid 0.5% increases.
- Melbourne posted a 0.3% rise, continuing its steady recovery, though values remain 1.1% below their peak.
- Brisbane and Perth maintained strong annual growth, up 8.3% and 7.8% respectively. Brisbane’s median house price has now surpassed $1 million, rising $68,300 over the past year.
Monthly price growth across the capitals ranged narrowly from 0.2% to 0.6%, highlighting a new phase of synchronised recovery after 2024’s uneven performance.
Regional Markets Remain Resilient
Regional markets rose 0.3% in June and have outpaced capital cities annually, with values up 6.0% compared to 4.1% for the capitals. Over the past five years, regional prices have jumped by more than 65%, buoyed by relative affordability and lifestyle appeal.
Houses and Units Both on the Rise
Both house and unit values lifted 0.4% in June. Over the past year:
- National house prices are up 4.6%—an average increase of nearly $50,000.
- Unit values have also performed well, rising 4.4% annually or $30,400.
Queensland and South Australia Continue to Outperform
Markets in Queensland and South Australia remain the standout performers. While interest rates have remained elevated for much of the past year, these more affordable states have attracted strong demand as buyers adjust to borrowing limits and shift towards better value opportunities.
Looking Ahead
With further rate cuts expected later in 2025, borrowing costs are likely to fall further, supporting continued price momentum—especially in more affordable markets. However, stretched affordability and constrained household income growth will likely keep the upswing measured.
Population growth, limited new housing supply, and improving sentiment are expected to sustain upward pressure on prices through the second half of 2025. Still, growth will likely remain concentrated in areas where buyers can still find relative value.
Let us help!
If you’re considering buying or selling a property and seeking to understand the current market conditions, why not chat with one of our friendly agents to understand how we can help?
Or feel free to click here to get your instant property estimate.