As of July 2025, all major capital city housing markets have recorded price gains in unison for the first time in four years. Fuelled by two Reserve Bank rate cuts in early 2025 and buyers seeking to “lock in” before further easing, market sentiment is now bullish with supply tight, competition fierce and prices climbing.
Sydney
- Median prices: houses ~ A$1,496,985; units ~ A$863,257
- Auction clearance rates have surged above 70%, notably with inner suburbs like Leichhardt and Pennant Hills seeing strong price growth following rate cuts in February and May
- Notable sale: a four‑bed, two‑bath brick home in Merrylands went under the hammer for A$1.98 million, well above its median suburb price of A$1.3 million
- Outlook: modest 3–3.5% annual growth forecast, underpinned by tight supply and rate cut momentum. Some pockets will grow much faster than this!
Melbourne
- Median prices: houses ~ A$947,611; units ~ A$617,395
- Auction clearance rates recently hit ~74% with around 3.1 bidders per auction, propelling listings to near A$1 million medians
- Buyers have responded to early rate cuts by snapping up property in middle‑ring suburbs such as Yarra and Brimbank
- Forecast: around 3.5% annual house price growth, slightly slower than smaller capitals however lower priced suburbs are seeing investor activity heat up with some crazy prices being paid by investors.
Brisbane
- Median prices: houses ~ A$1,010,566; units ~ A$718,196
- Units are outperforming houses – annual unit growth ~13.3% vs house growth ~7.5%
- Buyers are targeting suburbs like Redcliffe, Nundah & Ipswich Inner – some up over 10% annually
- Units around Woolloongabba now trade near A$690,650, significantly outperforming prior expectations
- Forecast: 5 – 6% annual growth, supported by Olympic infrastructure, inward migration and tight supply
Adelaide
- Median prices: houses ~ A$888,869; units ~ A$606,995
- Year‑on‑year metro median dwelling increased ~10.8%
- High‑growth suburbs such as Playford, Gawler‑Two Wells and Salisbury are seeing ~10 – 11% annual gains.
- Supply remains tight, and transactions often exceed guide prices in sought‑after enclaves like Brooklyn Park
- Forecast: solid ~5 – 8% growth in 2025, with buyers eager to purchase ahead of further incentive‑driven demand
Perth
- Median prices: houses ~ A$855,395; units ~ A$611,755
- Growth led by suburbs such as Mundaring (+11.6%), Swan (+10.5%) and Kwinana (+9.8%)
- Auction clearance rates are climbing, reflecting increased buyer activity since RBA rate cuts
- Forecast: Perth is set to grow ~5–8% in 2025, holding pace with Adelaide and Brisbane
Why Buyers Are Rushing Now
- Anticipated further RBA rate cuts (mid‑to‑late‑2025) are expected to increase borrowing power and confidence, prompting buyers to act early before affordability worsens
- Government incentives for first‑home buyers, stamp‑duty relief and shared equity schemes currently in play, or slated in near future, are increasing demand and tilting upward price expectations.
- With supply still well below federal dwelling approvals targets (only ~160k vs target ~240k), the imbalance between demand and housing stock is intensifying upward pressure.
Market examples of over‑reserve / above price-guide sales
- Sydney (Lane Cove): A three‑bedroom home with a reserve of A$2.75 million sold for A$3.215 million, some A$465k over reserve amid fierce early bidding after rate cuts
- Sydney (Merrylands): Auction frenzy saw a modest red‑brick 4‑bed home go for A$1.98 million, well above median suburb values, illustrating buyer urgency
Demand is fuelled by improving borrowing conditions and incentives. Many buyers anticipate further government stimulus, particularly for first-time buyers, which is expected to drive bidding competition higher. As a result, value gaps between reserve/guide prices and final sale amounts are widening, especially in sought‑after enclaves across Sydney and regional hubs.
The narrative for mid-2025: tight supply, rate-cut momentum, and policy tailwinds combine to amplify buyer urgency and nudge prices ever upward. Buyers hoping to catch a downward inflection in prices risk being too late to the party.
