Key takeaways
The national median house price fell 0.8% in the February quarter, reaching $1,151,730.
This marks the first consecutive monthly decline since January 2023.
The rate of decline is the sharpest since September 2022, when rapid interest rate hikes constrained the market.
National house prices surged over March following the February RBA interest rate cut with housing market activity rising sharply.
According to the latest data from My Housing Market, the national capital city median house price increased by 1.0% to $1,170,731 in the March quarter compared to the February quarter.
The March increase was the highest recorded since March 2024 and followed consecutive monthly falls influenced by the usual moderating seasonal factors of the holiday and back-to-work period of December through to February.
National house prices surged over March following the February RBA interest rate cut with housing market activity rising sharply as 2025 unfolds.
According to the latest data from My Housing Market, the national capital city median house price increased by 1.0% to $1,170,731 in the March quarter compared to the February quarter.
The March increase was the highest recorded since March 2024 and followed consecutive monthly falls influenced by the usual moderating seasonal factors of the holiday and back-to-work period of December through to February.
All capitals with the surprise exception of Perth reported increases in house prices over March with volatile Darwin the top performer up strongly by 5.8% followed by Canberra higher by 3.2%, Sydney up 1.8%, Adelaide increased 1.7%, Hobart up 1.2%, Melbourne higher by 0.8% and Brisbane up 0.3%.
Perth house prices however fell by 1.2% over the March quarter compared to the previous February quarter which was its first decline recorded since September 2022.
House prices have increased over the past year in Perth, Adelaide, Brisbane, Darwin, Sydney and Canberra, higher by 15.8%, 10.2%, 9.5%, 5.0%, 3.4% and 0.4% respectively. Hobart house prices however fell by 1.6% over the year with Melbourne down 1.8%.
Apartment / unit prices
National unit prices were higher again over the March quarter compared to the previous February quarter, rising sharply by 1.3% to $667,241 and remained 4.3% higher than the March quarter 2024 result.
Darwin was the top performer over March with unit prices rising by 4.7% followed by Brisbane increasing 2.2%, Melbourne up 1.4%, Sydney up 1.2%, Canberra and Perth each higher by 0.9% with Adelaide up by 0.1%. Hobart unit prices however fell 0.4% over the month.
Comment
Capital city housing markets bounced back strongly over March reflecting the end of the moderating seasonal effects of the typically quieter market conditions of December through to February.
The February decision to cut official interest rates – the first reduction in over 4 years, has also supported rising housing market activity by increasing confidence and improving housing affordability.
House price growth over March was particularly strong in Sydney and to a lesser degree Melbourne, with each recording their highest monthly results since early 2024.
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The Perth market however is showing early signs of moderating following more than two years of remarkable growth, with house prices falling over March for the first monthly decline since 2022.
Unit price growth has remained generally positive over recent months with Brisbane continuing to produce strong results and remaining a standout leader for annual growth.
Melbourne and Sydney reported robust results over the month, with Melbourne unit prices rising over consecutive quarters for the first time since May 2024
2025 will likely continue to produce positive results, particularly in the major capitals, fuelled by improved affordability and rising confidence generated by lower interest rates.
Prices growth in the recent boom-time markets of Brisbane, Adelaide and Perth however is likely to be lower than the heady results recorded through 2024.
Sydney is set to continue to report solid results with the Melbourne market now providing early signs of a better year for prices growth, particularly for units.
Underlying drivers will continue to support housing market activity generally, with the possibility of further RBA rate cuts that will support housing market activity and generate higher home prices through improved affordability and confidence.
Despite recent mixed labour market results, the national economy remains strong with continuing low jobless rates and solid annual jobs growth driving wage increases that will also be enhanced by interest rate cuts.
Although high post-COVID migration levels have eased recently, numbers remain strong and continue to add to chronic housing undersupply supporting high rents and low vacancy rates generally in capital city rental markets.
Following a period of easing over recent months, the latest data is reporting a general tightening of vacancy rates and rising tenant demand, with higher rents again likely to follow.
High rents and higher prices continue to provide clear incentives for first home buyers and investors chasing solid investment returns.
Capital city housing markets generally recorded higher house and unit prices over 2003 and 2024, and have rebounded over March following a typically quieter start to 2025 reflecting early year seasonal influences.
National home prices are set to record positive growth again over 2025 supported by lower interest rates, a continuing strong economy and chronic low levels of new home construction.
