By Michael Yardney May 12, 2025

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This week’s Australian Property Market Update – Latest Data, State by State May 13th 2025

Property Market News
This week’s Australian Property Market Update – Latest Data, State by State May 13th 2025

Key takeaways

Things got interesting on the housing front over the weekend.

We’ve been hearing a lot of talk about housing affordability lately, but now it’s heating up with some bold new ideas being floated by the major political parties.

There’s talk by the Coalition of making owner-occupier loans tax-deductible for first home buyers of new properties (which would be a game-changer), and Labor allowing first time buyers to purchase homes with just a 5% deposit on properties worth up to $1.5 million.

Add to that shared equity schemes, and you’ve got a bit of a government-led property buying buffet.

This week, CoreLogic Research reports that:

*Sydney property prices increased 0.1% over the last week, also increased 0.1% over the last month and are 0.8% higher than they were 12 months ago.

*Melbourne property prices increased 0.1% over the last week, increased 0.2% over the last month, and are -2.0% lower compared to 12 months ago.

*Brisbane property prices increased 0.1% over the last week, increased 0.5% over the last month and are 7.5% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.2% over the last month and are now 2.5% higher than they were 12 months ago.

There were 1,784 capital city auctions were held last week.

The preliminary auction clearance rate held above the 70% mark for the second week running.

This current property cycle has been driven by an undersupply of good properties relative to current demand pushing up property values and rents there was nothing to suggest there will be any significant change in the near future.

Unfortunately, the undersupply properties is going to persist for some time with all commentators agreeing that there is no way we're going to hit the housing construction targets required to meet our demand.

Australia’s property markets continue to surprise many commentators as we move through May 2025.

Despite higher interest rates, cost-of-living pressures and languishing consumer confidence, property values are still edging higher in many parts of the country.

Demand continues to outstrip supply, vacancy rates remain at record lows, and buyer sentiment is slowly improving as evidence by the strong auction results over the weekend.

Now that the federal election is behind us and the Labor Party has retained government, we can expect property values to increase strongly in the sub $1 million price bracket.

Labor’s housing agenda allowing first time buyers to purchase homes with just a 5% deposit on properties worth up to $1.5 million and their shared equity schemes, means we'll have a bit of a government-led property buying buffet.

Meanwhile, the RBA meet next week and all economist are suggesting interest rates will fall, their only disagreement is by how many times over the next year.

NAB executive chief economist Sally Auld now expects easing interest rates to support property growth and the economy to have a “soft landing” with inflation settling around the middle of the RBA’s target band by the second half of this year and unemployment staying below 4.5pc.

“That said, there are building headwinds in the global economy and shifts in US trade policy are likely to be net disinflationary for Australia.

Consequently, the RBA will need to normalise rates quickly to ensure policy is appropriately calibrated. We now see the RBA cutting to 3.1pc by August and then taking the cash rate to 2.6pc by early-2026.”

The cash rate target was last at 2.6pc in October 2022 – which was at the tail end of pandemic lockdowns.

Of course lower interest rates make borrowing more affordable and in general stimulate our property markets.

There is still a window of opportunity for property buyers to get into the market before further falls in interest rates cause a new flurry of activity later in the year.

On the auction front...there were 1,784 capital city auctions were held last week.

The preliminary auction clearance rate held above the 70% mark for the second week running.

According to CoreLogic, this is highest volume of auctions since the week prior to Easter

See Corelogic's full auction report below.

This week, CoreLogic also reports that:

Sydney property prices increased 0.1% over the last week, also increased 0.1% over the last month and are 0.8% higher than they were 12 months ago.
Melbourne property prices increased 0.1% over the last week, increased 0.2% over the last month, and are -2.0% lower compared to 12 months ago.

Brisbane property prices increased 0.1% over the last week, increased 0.5% over the last month and are 7.5% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.2% over the last month and are now 2.5% higher than they were 12 months ago.

Clearly, the property cycle is moving on but our markets are very fragmented.

Source: CoreLogic May 12th 2025

Of course, these are "overall" figures - there is not one Sydney or Melbourne or Brisbane property market.

And various segments of each market are performing differently.

At the beginning of this cycle the upper quartile of the market lead the upswing but last year the lower quartile across every capital city recorded a stronger outcome for housing values relative to its upper quartile counterpart.

The following chart shows how various segments of each capital city market are performing differently with median-priced properties performing well.

To help keep you up-to-date with all that's happening in property, here is my updated weekly analysis of data and charts as of 12th May 2025 provided by SQM Research, CoreLogic, and realestate.com.au.

Current property asking prices

Property asking prices are a useful leading indicator for housing markets - giving a good indication of what's ahead.

Here is the latest data available:

Sydney

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	2,040,796	1.542	1.8%	6.5%
All Units	853,666	4.234	0.9%	6.2%
Combined	1,558,071	2.398	1.6%	6.2%

Source: SQM Research

Melbourne

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,277,500	-1.385	0.7%	1.8%
All Units	627,079	-0.279	0.2%	3.6%
Combined	1,072,228	-1.148	0.6%	1.9%

Source: SQM Research

Brisbane

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,228,688	4.297	0.8%	12.3%
All Units	715,146	-2.346	-0.1%	17.7%
Combined	1,099,722	2.543	0.6%	13.0%

Source: SQM Research

Perth

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,127,117	3.826	0.4%	14.8%
All Units	647,957	-0.683	-1.2%	27.6%
Combined	1,001,634	2.609	0.1%	16.7%

Source: SQM Research

Adelaide

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,009,728	4.511	-0.8%	11.9%
All Units	543,857	-3.357	1.4%	18.6%
Combined	925,960	3.077	-0.6%	12.6%

Source: SQM Research

Canberra

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,150,519	-2.894	-0.8%	-2.8%
All Units	597,632	0.118	-0.7%	0.6%
Combined	944,906	-2.151	-0.8%	-2.5%

Source: SQM Research

Darwin

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	764,609	3.091	1.4%	15.3%
All Units	405,233	-0.483	0.4%	10.2%
Combined	623,456	1.648	1.2%	13.9%

Source: SQM Research

Hobart

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	845,974	-4.429	1.3%	7.2%
All Units	504,673	1.227	1.0%	-4.4%
Combined	794,043	-3.608	1.3%	5.9%

Source: SQM Research

National

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	981,639	5.433	0.3%	6.9%
All Units	582,652	-0.874	0.2%	8.0%
Combined	895,434	4.016	0.3%	6.9%

Source: SQM Research

Cap City Average

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,463,874	-0.913	0.8%	6.4%
All Units	734,027	0.880	0.3%	8.7%
Combined	1,246,760	-0.542	0.7%	6.6%

Source: SQM Research

The value of property asking prices as a leading indicator for housing markets is quite significant.

In fact it's more valuable than median prices which can be quite misleading.

Let's delve into why this is the case and how it impacts the real estate market.

Early Market Sentiment Indicator: Asking prices often reflect the current sentiment of sellers in the real estate market.

If sellers are confident, they might set higher asking prices, anticipating strong demand.
Conversely, if sellers are uncertain or perceive a market downturn, they might lower their asking prices to attract buyers.
This makes asking prices a real-time indicator of market sentiment, often preceding changes in actual sales prices.
Predictive of Future Price Trends: Trends in asking prices can be predictive of where the actual property prices are headed.
For example, a consistent rise in asking prices over a period can signal an upcoming rise in transaction prices.
Impact of Economic Factors: Economic factors such as interest rates, employment rates, and broader economic health influence asking prices.
For instance, changes in the Reserve Bank of Australia's policies or shifts in the job market can quickly reflect in the asking prices, providing insights into how these factors are influencing the housing market.
Regional Variations: In a diverse market like Australia's, asking prices can also provide insights into regional disparities.
For instance, the property markets in Melbourne and Sydney might behave differently from those in Brisbane or Perth. Asking prices can give early indications of these regional trends.
Influence of Supply and Demand: Asking prices are also a response to the balance of supply and demand in the market.
In areas with limited supply and high demand, asking prices tend to be higher and vice versa.

However, it's important to note that while asking prices are a valuable indicator, they should not be used in isolation.

Other factors like actual sales prices, time on the market, auction clearance rates, and economic conditions also play crucial roles in understanding the property market dynamics.

Last weekend's auction report

Highest volume of auctions since the week prior to Easter

1,784 capital city auctions were held last week, the highest volume of auction events since the week prior to Easter, when 3,066 homes went under the hammer.

The number of auctions was up 11.8% on the week prior, but continued to hold well below the levels seen a year ago (-20.3%) when housing conditions were much stronger.

The preliminary auction clearance rate held above the 70% mark for the second week running.

At 70.2%, last week’s result was roughly in line with the prior week, when a preliminary clearance rate of 70.1% (revised down to 63.1% once finalised) was recorded.

830 auctions were held in Melbourne, up from 776 the week prior.

While the early clearance rate slipped a little, from 74.4% the previous week to 73.2%, last week’s result was still the city’s second-highest preliminary clearance rate so far this year.

Sydney hosted 665 auctions, up from 562 the week prior.

The preliminary clearance rate has held below the 70% mark for the eighth consecutive week, with 67.7% of the results collected so far returning a positive result, down from 69.4% the week prior.

Adelaide held the highest volume of auctions across the smaller capitals, with 116 homes taken under the hammer.

Based on results reported so far, 66.7% of homes auctioned have sold, up from 60.0% the week prior and the city’s highest result in three weeks.

109 homes were auctioned in Brisbane, up from 104 the previous week, returning a preliminary clearance rate of 69.7%, the highest since August last year.

Only 50 homes went to auction across the ACT last week, down from 54 the week prior and returning a preliminary clearance rate of 62.9%, down from 69.4% the week prior.

In Perth, six of the seven auction results reported so far were successful, while the two auction results collected in Tasmania were both unsuccessful.

This week is likely to see around 1,600 auctions go to market, before rising to around 2,200 next week.

Our rental markets

According to CoreLogic, rental growth has firmed, with the national rental index rising by 0.6% consistently over the past three months.

Adjusting for seasonality, the pace of growth is milder, with rents rising 0.4% nationally in April.

Despite the strong seasonal performance through the start of the year, a slowdown in rental growth is more evident in the annual change, where the pace of growth has more than halved, from 8.3% over the 12 months to April 2024 to 3.6% over the most recent 12-month period.

Most capitals have recorded a material reduction in the pace of annual rental appreciation.