If you’ve been keeping an eye on the property market lately, you’ll know things are looking a little brighter than they did at the start of the year.
According to the latest data from Cotality (formerly CoreLogic), prices are creeping up again and it’s not just in the usual hotspots, growth is happening right across the country.
Let’s take a look through what’s happening nationally, then dive into the states and regions to see where the opportunities (and the challenges) lie.
The Big Picture
Nationally, home values rose by 1.8% over the 3 months to August. On an annual basis, prices are now 4.1% higher than this time last year.
What’s particularly interesting is how broad the growth is. Nearly 45% of suburbs across Australia are now sitting at or near record highs, and it’s not just Sydney or Brisbane leading the way. Regional Queensland, Western Australia, and South Australia are right up there too.
In short, the market has shifted from a patchy recovery into one that feels more balanced and widespread.
How the Capitals Are Tracking
Let’s break it down by city, because the story isn’t the same everywhere.
- Perth is still one of the strongest markets in the country. Driven by affordability, strong demand and tight supply prices were up 1.1% through August, 3.1% over the quarter and up 6.6% for the year.
- Adelaide has faired much like Perth with yearly gains of 6.5%, 2.1% over the quarter and 0.9% through August.
- Brisbane is still a real standout, rising 1.2% in August, 3.0% through the quarter and 7.9% for 2025.
- Melbourne continues its recovery story, up 0.3% through August, 1.0% over the quarter and 1.4% higher for the year.
- Sydney has shown modest growth with rate cuts paving the way for an 0.8% rise in August, 1.7% over the quarter and 2.1% over the year.
- Darwin is showing some impressive upside rising 1.0% in August, 5.0% through the quarter and 10.2% over the year.
- Hobart is still finding its feet after some strong results in recent years. Dwelling values were down 0.2% in August, 0.6% for the quarter but are positively up 2.6% for the year.
- Canberra has been quietly positive recording an August rise of 0.4%, 1.5% over the quarter and 1.6% over 2025.
National Sales
Cotality estimates 43,436 sales occurred nationally in August, taking the rolling 12-month count to 538,329, which is 2.0% higher than this time last year and 3.8% above the previous five-year average.
Darwin remains the standout performer with annual sales estimates almost 70% above the average, followed by regional WA (14.0%), Melbourne (13.5%) and regional Victoria (11.5%).
Median Days on Market
It’s never been more important to get the right agent in charge of your home sale with properties now taking longer to sell. The median time on market rising from 29 days over the three months to April, to 33 days in the August quarter.
Perth continues to see the shortest selling times with a median time on market of 14 days, while properties in Canberra (54 days) have seen the longest selling times across the capitals, after overtaking Darwin (44 days) back in April.
New Listings
The flow of new listings gained momentum in the final month of winter, with 34,737 newly advertised properties observed nationally over the four weeks to August 31st.
While down -10.3% from the level seen this time last year, and -1.3% shy of the previous five-year average, listing activity rose 9.4% in August, with easing interest rates, rising sentiment and stronger capital gain conditions setting the stage for a cracking spring selling season.
While new listing levels are down universally across the individual capitals relative to last year, a number, including Melbourne (27.2%), Canberra (18.4%), Sydney (17.5%), Hobart (3.5%), and Perth saw the flow of fresh listing increase over the month of August.
Clearance Rates
The last month of winter saw capital city auction activity ramp up, with weekly activity exceeding 2,000 in the final two weeks of August.
Success rates have also trended higher over the month, with the four-week rolling average clearance rate reaching its highest point in more than two years at 69.5%.
The week ending August 24th was particularly strong, with 70% of the 2,066 homes auctioned across the combined capitals reporting a positive result.
Rental Rates
The annual rate of growth in national rents continued to tick higher for the second consecutive month, with rents up 4.1% over the year to August. Both the combined capitals and regions have seen momentum build in rental trends.
Since bottoming out in June, the 12 month change in capital city rents has lifted 70 basis points to 3.4%, while the change in regional rents shifted from 5.3% over the 24/25 Financial year, to 5.8% over the year to August.
What’s Driving the Market Right Now
Three big forces are doing the heavy lifting:
- Interest rate cuts earlier this year gave buyers more borrowing power and confidence.
- Tight supply of both homes and rentals means competition is fierce in many suburbs.
- Government incentives for first-home buyers are helping demand.
Of course, there’s the flipside: affordability constraints. Prices have risen quickly in Perth, Adelaide, and Brisbane, and households are starting to feel the stretch. That’s one reason why units are seeing renewed attention in pricier markets.
Looking Ahead: What to Expect
So where’s the market heading as we move through the rest of 2025?
- Growth is expected to continue, but at a more moderate pace. Don’t expect another boom like 2021, but steady gains are likely.
- Sydney and Melbourne could lead the way over the next year. They’ve got more ground to recover, and lower interest rates are giving these bigger markets a chance to rebound.
- Markets like Perth and Adelaide may see growth slow a little, not because they’re weak, but because affordability is starting to cap how far buyers can stretch.
- Investors and renters will want to keep an eye on yields. Strong rental demand and limited supply are keeping rental markets tight, which could draw more investors back in.
The Bottom Line
The Australian property market is in a healthier, more consistent place than it’s been for some time.
- Nearly half the suburbs across the country are at record highs.
- Growth is now spread more evenly across states and regions.
- The gap between the strongest and weakest capitals has narrowed, making this feel more like a national upswing than a few hot-spot surges.
For buyers, that means more confidence to step in. For sellers, it means spring could be a golden opportunity. And for investors, the mix of rising rents, steady price growth, and clearer market trends is about as good a setting as you could ask for.
Want to know more about what’s happening in your particular market? Contact an Elders Expert here.