By Michael Yardney July 7, 2025

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This week’s Australian Property Market Update – Latest Data, State by State July 8th 2025

Property Market News
This week’s Australian Property Market Update – Latest Data, State by State July 8th 2025

Key takeaways

The RBA is widely tipped to cut interest rates this week.

With inflation falling faster than expected and now tracking within the RBA's target band, the case for an interest rate cut in July is strong.

Key cost pressures like fuel, goods, and even rents are easing, while consumer sentiment and spending remains weak.

Given these signs of a slowing economy, the RBA has room to ease monetary policy without risking another inflation spike.

A July rate cut would help support growth and signal a shift toward a more balanced approach.

This week, Cotality also reports that:

Sydney property prices increased 0.1% over the last week, increased 0.6% over the last month and are 1.3% higher than they were 12 months ago.

Melbourne property prices increased 0.1% over the last week, increased 0.4% over the last month, and are -0.4% lower compared to 12 months ago.

Brisbane property prices increased 0.2% over the last week, increased 0.7% over the last month and are 7.0% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.6% over the last month and are now 2.7% higher than they were 12 months ago.

The number of properties taken to auction fell to 1,786 last week.

The preliminary auction clearance rate has held above the 70% mark for the past four weeks and across eight of the past ten weeks.

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.

In fact, the market is tipping to more interest rate cuts are likely before the end of the year, and this is fueling buyer confidence, which is clearly showing up in very strong auction clearance rates.

Bank Governor Michele Bullock repeatedly emphasised that controlling inflation was their primary objective, and once that is achieved, Australians will reap the benefits later on.

Inflation is running at 2.1 per cent and underlying inflation is at 2.4 per cent – both under the mid-point of the RBA ’s target band.

At the same time, we are experiencing weak retail sales and slowing building approvals data, and our economy is running at a sluggish one-and-a-half per cent pace, so now seems the right time to lower rates.

The question is not so much whether we will get cuts, but how many will we get.

On the auction front this week...the number of properties taken to auction fell to 1,786 because of the school holidays.

The preliminary auction clearance rate has held above the 70% mark for the past four weeks and across eight of the past ten weeks.

See Cotality's full auction report below.

This week, Cotality also reports that:

Sydney property prices increased 0.1% over the last week, increased 0.6% over the last month and are 1.3% higher than they were 12 months ago.
Melbourne property prices increased 0.1% over the last week, increased 0.4% over the last month, and are -0.4% lower compared to 12 months ago.

Brisbane property prices increased 0.2% over the last week, increased 0.7% over the last month and are 7.0% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.6% over the last month and are now 2.7% higher than they were 12 months ago.

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

Weekly Change 07 July

Monthly Change 07 July

12 Month Change

Source: Cotality July 7th 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

28 Day Rolling 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 7th July 2025 provided by SQM Research, Cotality, 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	2,057,737	0.696	0.4%	6.2%
All Units	846,410	3.490	0.1%	4.1%
Combined	1,564,899	1.833	0.3%	5.5%

Source: SQM Research

Melbourne

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,303,243	2.000	1.1%	3.4%
All Units	629,729	-1.834	-0.6%	4.2%
Combined	1,090,575	0.790	0.7%	3.3%

Source: SQM Research

Brisbane

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,252,658	2.042	1.2%	12.0%
All Units	731,112	-1.712	1.8%	15.8%
Combined	1,121,595	1.098	1.3%	12.5%

Source: SQM Research

Perth

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,151,769	1.728	1.2%	12.6%
All Units	635,810	-0.369	-1.3%	20.6%
Combined	1,016,627	1.179	0.8%	13.7%

Source: SQM Research

Adelaide

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,063,501	2.599	2.1%	17.3%
All Units	557,604	-4.209	0.2%	18.7%
Combined	972,524	1.375	1.9%	17.4%

Source: SQM Research

Canberra

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,198,299	14.076	3.7%	-1.0%
All Units	597,937	-0.712	0.2%	-0.4%
Combined	974,596	8.566	2.9%	-1.4%

Source: SQM Research

Darwin

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	766,277	-7.277	-1.2%	16.4%
All Units	411,640	2.110	1.1%	9.8%
Combined	626,937	-3.589	-0.6%	14.6%

Source: SQM Research

Hobart

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	844,272	0.182	-0.4%	7.2%
All Units	496,250	5.050	-1.6%	-1.6%
Combined	791,286	0.923	-0.5%	6.2%

Source: SQM Research

National

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,004,449	1.028	0.5%	9.7%
All Units	582,812	-0.911	0.4%	5.3%
Combined	913,288	0.609	0.5%	9.0%

Source: SQM Research

Cap City Average

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,488,862	-2.522	0.3%	7.3%
All Units	731,701	2.532	0.2%	6.6%
Combined	1,263,455	-1.017	0.3%	6.9%

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

Auction volumes fall across the combined capitals

The number of properties taken to auction fell to 1,786 last week, the lowest since the King’s Birthday long weekend four weeks prior, but slightly higher than at the same time last year (1,776).

73.1% of homes have reported a successful result so far, down from 74.5% the week prior (revised down to 67.9% which was the highest final clearance rate since March 2024).

The preliminary auction clearance rate has held above the 70% mark for the past four weeks and across eight of the past ten weeks.

Capotal City Auction Statistics

Melbourne hosted the most auctions last week, with 756 homes going under the hammer, a sharp fall from the week prior when 962 homes were taken to auction.

75.5% of Melbourne auctions have reported a positive result so far, up from 75.2% a week earlier which revised back to 68.2% once finalised.

Melbourne’s preliminary clearance rate has held above the 70% mark consistently for the past ten weeks and above 75% over the past three weeks.

691 homes went under the hammer in Sydney, down from 771 auctions held a week earlier.

The preliminary auction clearance rate came in at 72.5%, one percentage point down from the week prior (73.5%) which revised back to 67.2% on final numbers.

Sydney’s preliminary auction clearance rate has held above 70% for the past four weeks but has consistently tracked below Melbourne’s.

Brisbane led the volume of auctions across the smaller capitals, with 155 homes taken to market last week.

70.8% of properties have sold based on results reported so far, down from 76.1% the previous week and the second week running where the preliminary clearance rate has been above 70%.

There were 102 homes auctioned in Adelaide last week, with 65.7% of results reported as successful so far.

Across the ACT, 69 auctions were held last week, with a preliminary clearance rate of 73.1%, the highest since the second week of March 2025.

Three of the five auction results reported in Perth last week were successful, while the one auction result reported in Tasmania was not.

The volume of auctions is set to fall further this week, with approximately 1,445 capital city homes currently scheduled for auction, rising to around 1,500 next week.

Our rental markets

According to Cotality, rental growth has continued to ease across most of Gross rental yields, dwellings Australia, with the national rental index rising 1.3% through the June quarter, the lowest Q2 change since 2020 (-1.7%).

Across the capital cities, the ACT recorded the smallest quarterly rise across the capital cities, with rents up 0.3% over the quarter, followed by Melbourne and Adelaide with a three-month increase of 0.7%.

Darwin stood out with the strongest quarterly lift in rents, up 2.9%, followed by Brisbane with a 2.0% increase and Sydney up 1.5%.

Annual Change In Rents Houses

Annual Change In Rents Units

Gross Rental Yields Dwellings