Market Trends
April 2025 Market Smart:
Values Edge Higher Amid Holiday Slowdown
Australia’s property market continued to move upward in April, though at a slightly gentler pace than the previous month. National dwelling values rose 0.3%, easing slightly from March’s 0.4% increase. While the growth trend remains intact, the tempo has clearly slowed, with many buyers and sellers taking a wait-and-see approach amid uncertainty surrounding the upcoming federal election and global trade concerns, particularly the US tariff announcements. The shortened working month, bookended by Easter and ANZAC Day, further contributed to a lull in market activity, with fewer transactions taking place despite underlying demand remaining relatively firm.
Key take aways
Third Month of Growth
National home values rose 0.3% in April, lifting the median dwelling value by $2,720. All capital cities recorded growth, though momentum eased slightly compared to March.
Darwin Leads, Melbourne Steadies
Darwin saw the largest monthly gain (+1.1%), while Sydney and Melbourne edged up by just 0.2% each. Melbourne remains 5.4% below its peak, but its recovery appears to be stabilising.
Regional Strength Returns
Combined regional markets outpaced the capitals, rising 0.6% vs 0.2%. Regional SA and WA were standouts, both rising over 1.3% for the month.
Listings and Auctions Hit Holiday Wall
A quiet April due to Easter and ANZAC Day resulted in the lowest number of new listings and auctions for this time of year since 2019 (outside of COVID).
Rental Yields Improve
National gross yields climbed to 3.73%, a two-year high. However, annual rent growth has slowed to 3.6%, down from 8.3% a year ago, with Sydney (1.9%) and Melbourne (2.0%) softening the most.
Affordability Still Tough
Buyers remain under pressure, with the average household needing 10.6 years to save a 20% deposit and dedicating over 50% of gross income to repayments.
Election and Rate Cuts on the Horizon
With the May 3 federal election and potential rate cuts to follow, further modest value gains are expected as uncertainty eases and stimulus measures emerge.
Modest Gains Across the Board
All capital cities recorded value gains in April, although results were modest in the larger markets. Sydney and Melbourne each posted a 0.2% rise, continuing their gradual recovery. Sydney is now just 1.1% below its September 2024 peak, while Melbourne remains 5.4% down from its 2022 high. Growth in these cities is being underpinned by improved affordability at the top end of the market and easing financial conditions following the February rate cut, but both markets are still grappling with subdued buyer sentiment and elevated serviceability pressures.
Change in dwelling values to end of April 2025
CoreLogic 2025
Tight Supply Fuels Regional Capital Growth
The smaller capitals continued to outperform, with Darwin leading the pack at 1.1% growth for the month, followed by Hobart at 0.9%. Perth and Brisbane also posted solid gains, each up 0.4%. These markets are benefiting from more affordable price points, tight stock levels, and stronger rental yields, which are continuing to attract both investors and owner-occupiers. Adelaide also remained strong, lifting 0.3% in April and 9.8% annually, supported by a low supply environment and continued population growth.
Rolling three month change in dwelling values – State Capitals
CoreLogic 2025
Regional Markets Lead the Way as Buyers Seek Value and Lifestyle Beyond the Capitals
Regional Australia once again outpaced the combined capitals, rising 0.6% in April compared to 0.2% across the metro markets. Regional South Australia and Western Australia delivered the strongest results, climbing 1.5% and 1.3% respectively. This reflects a broader shift in demand toward lifestyle regions and affordable growth corridors, a trend that re-emerged in late 2024 and has continued into 2025. With housing in capital cities still priced at a premium, many buyers are looking further afield for better value and lifestyle alignment, particularly as remote and hybrid work remain part of the norm for many Australians.
Rolling three-month change in dwelling values.
Combined capitals v combined regionals.
CoreLogic 2025
Rental Growth Slows, But Yields Hit Two-Year High as Regional Markets Lead the Way
Rental market dynamics continued to shift in April. While rents rose another 0.4% nationally on a seasonally adjusted basis, annual growth has now softened to 3.6%, down from 8.3% a year earlier. This deceleration has been most noticeable in Sydney and Melbourne, where annual rental increases have slowed to just 1.9% and 2.0% respectively, reflecting a rebalancing after the post-COVID surge in migration-driven demand. However, the easing in rental growth is being offset by an uptick in gross yields, which reached 3.73% nationally — the highest level in two years. Investors in Perth, Adelaide, and regional markets are seeing the strongest returns, supported by resilient tenant demand and more favourable purchase prices.
Annual change in rents – Houses
CoreLogic 2025
On the supply side, the impact of April’s public holidays was clearly felt. Auction volumes dipped to their lowest levels for this time of year since 2019, with just 644 auctions held across the capitals in the week ending April 20. New listings also dropped significantly, with only 19,650 properties advertised across the combined capitals in the four weeks to April 27. This is well below the seasonal average and reflects a pause in vendor activity, likely to resume after the May election. The ongoing undersupply of listings, paired with stable buyer demand, is continuing to place upward pressure on prices in many areas, even as broader market momentum cools slightly.
Things to Keep an Eye On
Worsening Rental Market
The share of gross annual income required to service median rent reached a record high of 32.9% at the end of 2024:
National housing affordability metrics
CoreLogic, ANU Centre for Social Research and Methods
Investor Demand
The share of mortgages taken out by investors is rising at an increasing rate, while first home buyer mortgages are in decline, and have been largely stagnant since 2021:
Mortgage Share (Ex-Refi)
Australian Bureau of Statistics
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