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Australian property values gained significant momentum through the September quarter, with the pace of growth accelerating during the spring selling season.
Persistently low stock levels and renewed buyer demand seem to be fuelling a competitive market, pushing national dwelling values to their largest quarterly increase since early 2024.
The Market at a Glance: October 2025
The median home value nationally has now increased to $857,280.
Cotality’s Head of Research, Eliza Owen told ABC News that a “couple of other factors” are contributing to the continued house price pressure generally across the country.
From interest rate cuts throughout 2025, leading to boosted borrowing capacity, the introduction of expanded first home buyer initiatives and relatively low listing volumes, competition for property continues to be fuelled.
“After averaging half a per cent growth for the first seven months of the year, what we’re seeing is not just an increase in value, but that increase really ramping up as we head into the spring selling season,” Ms Owen said.
“There are a couple of other factors playing in at the moment, which is this increase in confidence we’ve seen for consumers throughout the year and maybe a little bit of anticipated increase in activity from the expanded First Home Guarantee.”
“Anecdotally, we’ve heard that some people are trying to get in before that boosts demand at the lower segment of the market.”
The Market at a Glance: October 2025
Source: Cotality, Monthly Housing Chart Pack October 2025
Here are the key trends from the latest national housing data that are shaping the property landscape.
- National Dwelling Values: Prices rose by approximately 2.2% over the September quarter and are now up around 4.8% over the past 12 months.
- Capital Cities vs. Regions: The combined capitals are leading the growth, with values up about 2.3% for the quarter, while regional values increased by a solid 1.8%.
- New Listings: While the flow of new properties entering the market has seasonally increased, it remains below last year’s levels and the five-year average.
- Total Listings: The total number of homes for sale across Australia remains exceptionally tight, sitting almost 20% below the 5-year average for this time of year. Total listings are down 14.8% compared to the same time last year according to Cotality’s Monthly HVI.
- Median Days on Market: Properties are selling quickly, with the national median time on market sitting at around 30 days.
- Rental Growth: Rents continue to climb, with a national increase of approximately 4.3% over the past year, adding pressure on tenants.
- Gross Rental Yields: The national gross rental yield is holding at around 3.7%, offering a steady return for investors.
- Investor Activity: Property investors remain a major force, accounting for nearly 38% of the value of all new housing loan commitments.
- First Home Buyers: Lending to first home buyers has edged higher, indicating they are actively navigating the competitive conditions to secure a property.
What About Regional Australia?
Australia’s regional markets are also performing well, with combined dwelling values rising by approximately 1.8% over the quarter and 4.3% over the past year.
Momentum is particularly firm in the regional areas of Queensland, South Australia, and Western Australia. In contrast, some markets that saw huge growth during the pandemic are now experiencing more modest conditions.
Why Is This Happening?
The current market heat is being driven by a perfect storm of factors. An easing in interest rates earlier in the year has boosted borrowing capacity and buyer confidence.
This renewed demand is clashing with a historically low number of properties available for sale. This supply-demand imbalance is creating intense competition and putting upward pressure on prices.
Cotality’s Research Director Tim Lawless said:
“The number of homes for sale at the end of September was about 53% lower than average in Darwin, 45% below average in Perth and down 31% in Brisbane. At the same time, estimates for quarterly home sales are tracking above average, demonstrating a clear disconnect between demand and supply.”
On top of this, a significant number of property investors are active in the market, attracted by the prospect of capital gains and strong rental returns.
What This Means for First Home Buyers
For anyone trying to buy their first home, the current environment is challenging. Rising prices mean saving for a deposit is harder, and competition for available properties is stiff.
However, government support schemes remain in place to assist eligible buyers. To succeed in these conditions, getting pre-approved for a home loan is a critical first step.
This clarifies your budget and allows you to act quickly when you find the right home. It’s also wise to broaden your search to include a wider range of suburbs and property types.
What to Watch Next
As we continue through the spring and head towards the end of the year, several factors will shape the market’s direction:
- The RBA’s Next Move: Future decisions on the cash rate will be the most significant factor influencing buyer sentiment and affordability.
- Spring Listings: All eyes are on whether the seasonal uplift in new listings will be enough to satisfy buyer demand and ease price pressures.
- Auction Clearance Rates: This indicator provides a real-time signal of market strength and will show if the current high levels of buyer confidence are sustained.
- Rental Market Pressure: With vacancy rates low and rents rising, more tenants may be pushed towards home ownership, while investors may be encouraged to expand their portfolios.
- Dwelling Approvals: The ongoing low rate of new building approvals suggests that supply shortages will likely persist, underpinning property values in the medium term.
Navigating a fast-moving property market requires expert guidance. A local mortgage broker can help you understand your borrowing power, compare loans from a wide range of lenders, and find a solution tailored to your financial situation.
We’ll get you sorted.
Disclaimer:
The information is provided by Yellow Brick Road Finance Pty. Limited ACN 128 708 109 Australian Credit Licence 393195 and does not take your personal objectives, financial situation or needs into account. Consider its appropriateness to these factors before deciding whether to act on it.
