Market Trends
November 2025 Market Smart:
Spring Push Continues as Momentum Builds Across Australia
National dwelling values continued their upward run in November, supported by tighter supply, improved confidence, and rising demand in the more affordable markets. While growth remains uneven across states, the overall trend shows a market that is firming rather than cooling, with investors returning and owner-occupiers stepping in ahead of summer.
Pricing pressure remains strongest in the mid-tier capitals and lifestyle-driven regional markets. With listings still well below average and population flows remaining elevated, the conditions for further growth into early 2026 are now clearly in place.
Key Take Aways
Growth Strengthens
National dwelling values rose 1.0%, keeping the spring rebound on track.
Mid-Tier Capitals Lead
Perth, Brisbane, Adelaide, and Darwin continue to dominate monthly growth.
Regionals Remain Strong
Combined regionals outperformed capitals with a 1.1% monthly rise.
Rents Rising Again
Low vacancy continues to push rents higher, especially in WA and QLD.
Listings Still Tight
Supply remains below average, sustaining upward pressure on prices.
Investors Returning
Improved borrowing conditions and stronger yields are lifting investor activity.
Dwelling Values
Another Month of Broad-Based Gains
National home values rose 1.0% in November, matching the momentum established through spring. All capital cities recorded growth, led by the affordability markets of Perth (+2.4%), Brisbane (+1.9%), Adelaide (+1.9%), and Darwin (+1.9%). Sydney and Melbourne continued their softer but steady climb with 0.5% and 0.3% growth respectively.
These results reinforce a clear trend: buyers are shifting toward value-heavy locations where rental conditions are tight and borrowing power stretches further.
Market Movement
Momentum Driven by Mid-Tier Capitals
The rolling three-month change shows the strongest contributors to national growth remain the affordable capitals. Perth, Brisbane, and Adelaide are all pushing well above the national average, creating a sharp contrast with Sydney and Melbourne’s more modest movement.
With listing volumes still low and demand improving post-rate cuts, this momentum is likely to carry into early summer.
Cotality – National Dwelling Values
Capital Vs Regionals
Regionals Reclaim Their Lead
Regional markets once again outperformed the capitals in November, rising 1.1% compared to 1.0% across the combined capitals.
Regional WA and Regional Queensland continue to be standout performers, supported by strong population inflows and competitive affordability.
Capital city markets remain solid but uneven, with Perth commanding the cycle and Sydney/Melbourne tracking below the national average.
Cotality – National Dwelling Values
Rental Growth
Rental Pressures Continue to Build
National rents continued upward through November, driven by vacancy rates that remain among the lowest in two decades. The rental market remains tightest in Perth, Adelaide, and Brisbane, where demand from new residents continues to outpace available supply.
Yields remain stable despite rising prices, with the average national gross yield holding around historically normal levels. Investors remain well-positioned as both prices and rents drift higher.
Cotality – National Dwelling Values
Regional Strength and Returns
Regional markets are also showing firm rental growth, particularly in mining-aligned and lifestyle markets across WA and QLD. With supply pipelines constrained and population growth outside the capitals still elevated, rental conditions are expected to remain competitive through 2026.
While rents have eased slightly from 2023 highs, the long-term trend remains upward, providing investors with steady cash flow and defensive returns.
Things To Keep An Eye On
Population flows remain a key driver of demand, and early indicators point toward continued momentum into 2026.
Investor activity is rising, though still below peak levels — creating a window before competition intensifies.
Construction approvals remain weak, suggesting the supply shortage will continue to push both prices and rents upward.
