Market Trends
October 2025 Market Smart:
Momentum Hits a Two-Year High
Australia’s property market is finishing 2025 on a strong note. National dwelling values jumped 1.1% in October, marking the sharpest monthly gain in over two years. With supply still 18% below average and buyer confidence improving after rate cuts earlier this year, the housing upswing continues to build across almost every capital city and regional market.
Despite cost-of-living pressures and stretched affordability, low listings and renewed demand are keeping the market resilient heading into summer.
Key Take Aways
Growth Accelerates Again
October’s 1.1% rise marks the strongest national growth in over two years.
Perth, Brisbane, and Darwin Lead
Perth (+1.9%) and Brisbane (+1.8%) remain the top-performing capitals.
Regional Strength Endures
Regional WA and QLD post above-average growth amid tight supply.
Rents Rebound
Rental growth is reaccelerating, especially in smaller capitals.
Supply Still Tight
Listings remain 18% below average, keeping conditions in sellers’ favour.
Rate Cuts Losing Steam
The boost from earlier rate cuts is waning as affordability caps gains.
Market Trends
National home values rose 1.1% in October, the fastest growth since mid-2023. Every capital city posted a rise, led by Perth (+1.9%), Brisbane (+1.8%), and Darwin (+1.6%). Median national values now sit at $872,538, up 6.1% year-on-year and almost $54,000 higher since February’s first rate cut.
Quarterly growth reached 2.8% nationally, with combined capitals up 2.9% and regionals up 2.4%. Perth remains the standout performer, notching 5.4% growth for the quarter, while Brisbane follows closely at 4.9%.
This broad-based momentum suggests buyers are re-entering markets that were flat through 2024.
Cotality, 2025
Cotality, 2025
Regional Markets Hold Their Own
Capital cities are setting the pace, but regionals are far from quiet.
Regional WA (+5.3%), Regional QLD (+3.1%), and Regional SA (+2.2%) all recorded robust quarterly growth, showing that affordability and lifestyle markets remain in high demand.
Rental Growth Reaccelerates
Rents are on the rise again, with vacancy rates holding near record lows of 1.4%. Nationally, rents are growing at 0.5% per month, the strongest pace since mid-2024.
Smaller capitals lead the charge; Darwin rents up 8.5% annually, Hobart +6.9%, Perth +5.7%.
Unit rents are outpacing houses (+4.4% vs +3.9%) as affordability pushes more tenants into apartments.
Despite the rental rebound, housing values are rising faster, softening yields to 3.4% across capitals and 4.3% across regionals, the lowest levels since 2022. However, total returns remain strong, particularly in Darwin (23.1%) and Perth (14%), where rental income and growth combine powerfully.
Things To Keep An Eye On
- Inflation and rate outlook: renewed inflation may slow the rate-cutting cycle, tempering sentiment.
- Supply constraints: new housing starts are still 15% below the decade average, limiting future stock.
- Investor credit tightening: with investor loans surging 38% of all new mortgages, regulators may step in to slow activity.
