Spring is set for a bumper selling season!
Property values continued to gain momentum nationally for the seventh consecutive month with an increase of 0.7% according to figures from Cotality (previously Corelogic). This is the strongest gain since May 2024.
Eliza Owen, head of research at Cotality, stated that the drivers of the increase in home values are straightforward.
“You’ve got more demand in the housing market, with real wages growth up to its highest level in five years, lower interest rates and more consumer confidence aiding housing purchases,” Ms Owen said.
It appears to be a seller's market this spring as home prices are set to continue to rise and fewer properties are being listed for sale. Cotality Australia’s research director, Tim Lawless, said “Vendors are in a strong position as we head into spring.”
The interest rate cuts in February, May and August have spurred buyer demand as borrowers have increased borrowing capacity. “Once again, we are seeing a clear mismatch between available supply and demonstrated demand, placing upwards pressure on housing values”, said Tim Lawless.
“The annual trend in estimated home sales is up 2% on last year and tracking almost 4% above the previous five-year average. At the same time, advertised supply levels remain about -20% below average for this time of the year.”
The national median house price is now $848,858, up 4.1% over the year. Brisbane achieved the highest monthly growth rate, up 1.2% while Hobart was the only capital that lost ground, down by 0.2%.
While auction clearance rates rose to 70% in August, the highest since February 2024, there are low levels of properties being listed for sale.
Tim Lawless said, “We are starting to see the usual start of spring upswing in new listings coming to market, but from a low base. A pick up in the flow of stock coming to market through spring will be good news for buyers who generally have limited choice at the moment.”
Market confidence is set to remain as consumer sentiment reached a 3-and-a-half-year high in August, core inflation is around the mid-point of the RBA’s target, and well as further interest rate cuts, along with the expansion of the First Home Buyer Guarantee due on 1 October.
“Saving for a deposit is one of the biggest hurdles to accessing home ownership. Saving a 5% rather than a 20% deposit could shave around 10 years off the time it takes to accrue a deposit in an expensive market like Sydney,” Mr Lawless said.
Households are continuing to accrue savings, with accumulated savings nearing pre-pandemic levels in March.
Wage growth is another factor that is looking to bolster the market with real wage growth at 1.3% per annum, the highest levels since June 2020.
Affordability continues to constrain the market and will keep growth levels steady, along with the pressure on the growth in population, which is an ongoing issue with housing supply.
Melbourne
The Victorian capital posted a 1.0% quarterly move according to Cotality figures, taking the city’s median dwelling price to $803,104. Investors should take note that the gross rental yield figure for Melbourne is 3.7%.
Sydney
In the three months to August, Sydney experienced a dwelling value change of 1.7%, resulting in a median of $1.224 million. The gross rental yield for the Harbour City remains the lowest of the capitals at 3.0%.
Brisbane
The Queensland capital continues to record the second most expensive spot for dwelling values at $949,583 and a quarterly rise of 3.0%. Brisbane has recorded a gross rental yield of 3.6%.
Canberra
The national capital recorded a rise of 1.5% during the quarter, with the median now sitting at $872,957. For Canberra, the gross rental yield is 4.1%.
Perth
Perth prices increased 3.1% over the quarter, taking their median to $841,928. Perth recorded a 4.2% gross rental yield.
For more information about how you might be able to purchase a property in the current market, get in touch with us today.
Note: all figures in the city snapshots are sourced from: Cotality national Home Value Index (September 2025)
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