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Michael Yardney
By Michael Yardney
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This week’s Australian Property Market Update – Latest Data, State by State May 20th 2025

key takeaways

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 remained flat over the last week, increased 0.1% over the last month and are 0.6% 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 -1.9% lower compared to 12 months ago.

*Brisbane property prices increased 0.3% over the last week, increased 0.6% over the last month and are 7.4% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.3% over the last month and are now 2.4% higher than they were 12 months ago.

There were 1,835 auctions were held across the combined capitals last week.

The preliminary auction clearance rate is at 68.8%.

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 1,835 auctions were held across the combined capitals last week

The preliminary auction clearance rate is at 68.8%

According to CoreLogic, there's a slip in preliminary clearance rate across combined capitals. 

See Corelogic's full auction report below.

This week, CoreLogic also reports that:

  • Sydney property prices remained flat over the last week,  increased 0.1% over the last month and are 0.6% 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 -1.9% lower compared to 12 months ago.
  • Brisbane property prices increased 0.3% over the last week, increased 0.6% over the last month and are 7.4% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.3% over the last month and are now 2.4% higher than they were 12 months ago.

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

Weekly Change 19 May

Monthly Change 19 May

12 Month Change 19 May

Source: CoreLogic May 19th  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.

Quarterly Change In Stratified Hdi

Monthly Change In Hvi

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 19th 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 2,038,727 -3.069 1.3% 5.9%
All Units 854,431 0.564 1.3% 6.8%
Combined 1,557,155 -1.591 1.3% 5.8%

Source: SQM Research

Melbourne

Property type Price ($) Weekly Change Monthly Change % Annual % change
All Houses 1,278,290 0.790 0.4% 1.8%
All Units 628,365 1.035 0.2% 3.5%
Combined 1,073,175 0.867 0.3% 1.9%

Source: SQM Research

Brisbane

Property type Price ($) Weekly Change Monthly Change % Annual % change
All Houses 1,232,304 3.266 1.1% 12.5%
All Units 714,923 -0.723 -0.7% 17.8%
Combined 1,102,374 2.264 0.8% 13.2%

Source: SQM Research

Perth

Property type Price ($) Weekly Change Monthly Change % Annual % change
All Houses 1,125,006 -2.111 0.2% 14.2%
All Units 649,670 2.626 0.2% 26.5%
Combined 1,000,524 -0.870 0.2% 16.0%

Source: SQM Research

Adelaide

Property type Price ($) Weekly Change Monthly Change % Annual % change
All Houses 1,010,891 -1.367 -0.4% 11.6%
All Units 538,904 -5.204 -0.1% 16.5%
Combined 926,024 -2.057 -0.4% 12.1%

Source: SQM Research

Canberra

Property type Price ($) Weekly Change Monthly Change % Annual % change
All Houses 1,151,259 0.741 -0.4% -3.8%
All Units 596,082 -0.107 -0.6% 0.0%
Combined 944,794 0.425 -0.5% -3.5%

Source: SQM Research

Darwin

Property type Price ($) Weekly Change Monthly Change % Annual % change
All Houses 762,205 -2.405 -0.3% 14.9%
All Units 406,867 1.633 1.3% 10.4%
Combined 622,637 -0.819 0.1% 13.7%

Source: SQM Research

Hobart

Property type Price ($) Weekly Change Monthly Change % Annual % change
All Houses 842,100 -3.919 0.4% 7.2%
All Units 505,537 0.863 0.5% 3.9%
Combined 790,890 -3.191 0.4% 6.0%

Source: SQM Research

National

Property type Price ($) Weekly Change Monthly Change % Annual % change
All Houses 979,937 -1.661 0.4% 6.6%
All Units 583,223 0.552 0.3% 7.2%
Combined 894,223 -1.183 0.4% 6.0%

Source: SQM Research

Cap City Average

Property type Price ($) Weekly Change Monthly Change % Annual % change
All Houses 1,461,433 -3.542 0.4% 6.0%
All Units 733,633 -0.591 1.0% 8.7%
Combined 1,244,928 -2.664 0.5% 6.2%

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

READ MORE: The latest median property prices in Australia’s major cities

Last weekend's auction report

Slip in preliminary clearance rate across combined capitals

After holding above the 70% mark for the past two weeks, the combined capital city preliminary auction clearance rate slipped back to 68.8% last week.

Despite the slip, last week’s early clearance rate remains slightly above the year-to-date average of 68.0%.

1,835 auctions were held across the combined capitals last week, the highest volume since the week prior to Easter, when 3,066 homes went under the hammer.

Capital City Auction Statistics 19 May

Melbourne was the only capital city to post a preliminary clearance rate above the 70% mark last week.

At 73.8%, last week’s result was the city’s second-highest early clearance rate so far this year.

935 auctions were held across Melbourne last week, up from 799 the week prior, but -7.3% below the levels recorded a year ago.

Sydney was home to 558 auctions last week, down from 656 the week prior and -23.0% fewer auctions than this time last year.

The preliminary clearance rate also slipped lower, coming in at 65.3%.

Excluding the more volatile results from January, last week was the lowest preliminary clearance rate for Sydney since the week ending December 15th, 2024 (63.0%).

Brisbane hosted the most auctions across the smaller capitals last week, with 134 homes taken under the hammer, the highest volume since the week prior to Easter (135).

After bouncing higher the previous week to 69.7% (revised down to 59.8%), Brisbane’s preliminary clearance rate weakened last week, dropping back to 59.6%.

132 homes went to auction in Adelaide last week, up from 109 the previous week.

The preliminary clearance rate reduced to 64.1%, down from 66.7% the week prior, and tracking below the year-to-date average of 67.4%.

The ACT saw 68 auctions held last week, up from 50 the week prior.

56.6% of auctions have recorded a successful result so far, the lowest preliminary clearance rate in three weeks.

Four of the six auctions held in Perth last week have been collected so far, three of which were successful, while the one auction result reported so far in Tasmania was unsuccessful.

It seems that many vendors are holding out for the RBA’s interest rate decision this week.

With the cash rate widely expected to reduce today, the volume of scheduled auctions across the combined capitals is set to rise to around 2,360 this week – a 29% jump on last week, before rising further next week, to around 2,700 auctions.

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.

Annual Change In Rents Houses

Annual Change In Rents Units

Gross Rental Yields Dwellings

 

Sydney

Property Type Rent ($) Weekly change Monthly change  12 Months change
All Houses $1,065.68 2.32 0.6% 0.4%
All Units $707.89 -3.89 -0.6% -0.2%
Combined $852.99 -1.37 0.0% 0.1%

Source: SQM Research

Melbourne

Property Type Rent ($) Weekly change Monthly change  12 Months change
All Houses $764.46 2.54 0.9% 2.7%
All Units $566.31 -0.31 -0.6% 1.7%
Combined $648.65 0.88 0.1% 2.3%

Source: SQM Research

Brisbane

Property Type Rent ($) Weekly change Monthly change 12 Months change
All Houses $758.33 1.67 0.1% 5.7%
All Units $595.31 -0.31 -0.3% 2.8%
Combined $684.93 0.78 0.0% 4.5%

Source: SQM Research

Perth

Property Type Rent ($) Weekly change Monthly change 12 Months  change
All Houses $830.83 -1.83 0.0% 5.1%
All Units $649.04 -1.04 0.7% 6.9%
Combined $755.41 -1.50 0.2% 5.8%

Source: SQM Research

Adelaide

Property Type Rent $) Weekly change Monthly change 12 Months change
All Houses $664.33 -2.33 -0.6% 3.6%
All Units $513.32 -2.32 -2.1% 7.1%
Combined $613.00 -2.33 -1.0% 4.7%

Source: SQM Research

Canberra

Property Type Rent ($) Weekly change Monthly change 12 Months change
All Houses $817.99 5.01 1.0% 7.1%
All Units $588.32 1.68 1.1% 3.8%
Combined $692.61 3.19 1.0% 5.4%

Source: SQM Research

Darwin

Property Type Rent ($) Weekly change Monthly change 12 Months change
All Houses $749.41 7.59 2.0% 8.6%
All Units $525.57 -8.57 -3.6% -4.5%
Combined $616.76 -1.99 -0.9% 1.6%

Source: SQM Research

Hobart

Property Type Rent 9$) Weekly change Monthly change 12 Months change
All Houses $555.61 6.39 -1.8% 5.0%
All Units $478.51 -14.51 -2.4% 3.2%
Combined $524.77 -1.97 -2.0% 4.3%

Source: SQM Research

National

Property Type Rent ($) Weekly change Monthly change 12 Months change
All Houses $721.00 -2.00 -1.1% 3.4%
All Units $567.00 0.00 0.00% 4.6%
Combined $649.55 -1.07 -0.7% 3.9%

Source: SQM Research

Cap City Average

Property Type Rent ($) Weekly change Monthly change 12 Months change
All Houses $862.00 3.00 0.7% 2.7%
All Units $635.00 -4.00 -0.9% 1.1%
Combined $741.23 -0.72 0.0% 2.0%

Source: SQM Research

Sellers of good properties are on strike

The flow of new listings has been mostly tracking below the previous five-year average since late last year, a trend that became more evident through April due to seasonal factors including the Easter and ANZAC day long weekends.

A dent to consumer sentiment could be another factor influencing the softer trend in new listings through the month.

As the market moves into winter, the flow of new listings is likely to remain low relative to March levels.

The number of listings reduced further through April to be more than 12% below five-year average levels but roughly in line with a year ago (-0.5%).

The shortage of listings is more evident across regional Australia, where stock levels are 16.7% below average, while listings across the combined capitals are 9.4% below the previous five-year average.

Number Of New Listings National Dwellings

Source: CoreLogic May 2025

Vendor metrics


As the following chart shows, it's taking longer to sell a home.

Median Days On Market 3 Months To April 2025

Despite the slowdown in sales activity, selling times are once again falling, with the national median time on market
dropping from a recent high of 36 days over the three months to February to 33 days over the three months to April.

Across the capitals, Darwin, Melbourne, Sydney and Canberra recorded the steepest declines compared to the three
months to February, down -13, -11, -10 and -8 days, respectively

Median Vendor Discount 3 Months To April 2025

ALSO READ: Latest property price forecasts revealed. What’s ahead in our housing markets in the next year or two?

Michael Yardney
About Michael Yardney Michael is the founder of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.
87 comments

Dominating the current narrative about Property prices is the relationship to wages growth. However an analysis of property price growth in relation to household borrowing capacity is very insightful. When you do that you can see there is still an en ...Read full version

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Blaming foreign entity is the easiest scapegoat tactic. Aussie govt loves using it over and over again. In the end, new rules are always introduced and hurt the locals. It's vicious cycle!

1 reply

If anyone out there is in another state and thinking of investing in Perth (and you are not coming to visit), I would suggest north of the River (Swan River). Many good homes available so do your homework and don't rush.

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