14/07/2025
Australia’s Housing Market Snapshot. Insights from Cotality's July 2025 Monthly Housing Chart Pack.
Australia’s Residential Market: Still the Nation’s Biggest AssetResidential real estate continues to underpin Australia’s wealth, now valued at $11.5 trillion, well above superannuation ($4.1 trillion) and listed stocks ($3.4 trillion). More than half (55.9%) of household wealth is tied up in housing.
National Values & Trends
National dwelling values rose 1.4% in the June quarter, accelerating from a 0.9% gain in Q1.
Over the 2024–25 financial year, home values rose 3.4%, showing the growth trend is gaining pace again after a period of softness.
Regional markets still slightly outperform capitals on a quarterly basis (1.6% vs 1.4%), but capitals are catching up, recording stronger monthly gains in May and June.
State-by-State Snapshot (June Quarter)
Sydney: Up 0.6% quarterly, up 1.1% annually with values at a record high.
Melbourne: Up 0.5% monthly in June but down 0.4% over the year, but still 3.9% below its 2022 peak.
Brisbane: Up 0.7% quarterly, up 7.0% annually, at a record high.
Adelaide: Up 1.1% quarterly, up 8.0% annually, record highs continue.
Perth: Up 0.8% quarterly, up 7.0% annually, record highs.
Hobart: Up 2.0% quarterly, but down 0.2% over the year, but still 10.2% below its 2022 high.
Darwin: Up 1.5% in June alone, up 6.0% over the year, a new peak after 11 years.
Canberra: Up 0.9% quarterly, up 0.3% annually, still 5.3% below its 2022 peak.
Listings, Sales & Auctions
Estimated 531,457 sales nationally in FY25, up 2.7% YoY. Darwin sales jumped 44%, while Sydney, Perth and Brisbane posted small declines.
Properties are taking longer to sell, with median days on market rising to 35 days (up from 29 a year ago).
Discounting is easing, with vendors negotiating less to secure a sale.
New listings remain tight with 33,159 new properties listed in June, -11.7% lower than last year and well below the 5-year average.
Auction clearance rates are healthy, averaging 64.8% across the capitals in June.
Rental Market & Yields
Rental growth is easing as the national rental index rose just 1.3% for the June quarter, its slowest Q2 since 2020.
Annual rents grew 3.4%, well down from last year’s 7.8%, but still above the pre-COVID decade average.
Gross rent yields have held steady at 3.7% nationally — stable for 31 months straight.
Construction & Lending Trends
Dwelling approvals rose 3.2% in May but remain 23.9% below the national targets needed to address supply gaps.
New housing finance fell in Q1. Loan volumes down -3.5%, value down -1.6% as both owner-occupiers and investors pulled back.
Investors made up 37.9% of lending by value, above the decade average, but slightly down from late 2024.
First home buyer finance dropped -3.4% in Q1.
The RBA held the cash rate steady at 3.85% in July, but markets expect cuts later this year. Variable rates have already started to drop, now 5.83% for owner-occupiers on average.
Australia’s housing market is regaining momentum in 2025 but remains patchy. Record-high values in Brisbane, Adelaide, Perth and Darwin highlight pockets of strength, while Melbourne and Canberra still lag their peaks. Tight supply and robust rental demand continue to support prices, but affordability and borrowing costs will keep shaping the story in the second half of the year.
Access full report at - https://www.cotality.com/au/resources/industry-insights/monthly-housing-chart-pack
