By Michael Yardney May 26, 2025

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This week’s Australian Property Market Update – Latest Data, State by State May 27th 2025

Property Market News
This week’s Australian Property Market Update – Latest Data, State by State May 27th 2025

Key takeaways

If there’s one clear lesson to take from the market chaos of the last few months, it’s the enduring value of long-term thinking.

For the last 90 days or longer, we’ve been handed a masterclass in why reacting to short-term noise rarely pays off, especially in property.

Headlines have swung from doom to boom and back again, but smart investors understand that real wealth is built over the medium to long term, not in trying to pick market bottoms or getting spooked by interest rate chatter.

In fact, right now, the fundamentals underpinning the Australian property market couldn’t look more solid.

We’ve got falling interest rates on the horizon, surging population growth fuelling demand, and a chronic shortage of housing supply

However, global economic uncertainties and ongoing local challenges are keeping business and consumer confidence patchy.

This week, Cotality reports that:

*Sydney property prices increased 0.1% over the last week, increased 0.2% 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 0.3% over the last month, and are -1.8% lower compared to 12 months ago.

*Brisbane property prices remained flat over the last week, increased 0.6% over the last month and are 7.1% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.3% over the last month and are now 2.3% higher than they were 12 months ago.

There were 2,512 auctions held across the combined capitals last week.

The preliminary auction clearance rate rose to 71.3%, the second-highest early result so far this year.

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.

If there’s one clear lesson to take from the market chaos of the last few months, it’s the enduring value of long-term thinking.

For the last 90 days or longer, we’ve been handed a masterclass in why reacting to short-term noise rarely pays off, especially in property.

In fact, right now, the fundamentals underpinning the Australian property market couldn’t look more solid.

We’ve got the “holy trinity” in play: falling interest rates on the horizon, surging population growth fuelling demand, and a chronic shortage of housing supply.

Layer in rising construction costs, wage growth, and delayed development pipelines, and you’ve got a strong case for this being a very good time in the cycle to be investing in quality residential real estate.

On the auction front...there were 2,512 auctions held across the combined capitals last week

The preliminary auction clearance rate rose to 71.3%, the second-highest early result so far this year.

According to Cotality, auction markets respond positively to rate cut

See Cotality's full auction report below.

This week, Cotality also reports that:

Sydney property prices increased 0.1% over the last week, increased 0.2% 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 0.3% over the last month, and are -1.8% lower compared to 12 months ago.

Brisbane property prices remained flat over the last week, increased 0.6% over the last month and are 7.1% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.3% over the last month and are now 2.3% higher than they were 12 months ago.

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

Source: Cotality May 26th 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 26th May 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	2,039,597	-6.055	0.6%	5.9%
All Units	853,153	-1.453	1.0%	5.9%
Combined	1,557,151	-4.184	0.6%	5.6%

Source: SQM Research

Melbourne

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,279,233	1.567	0.2%	1.6%
All Units	629,410	0.390	0.3%	4.1%
Combined	1,074,150	1.195	0.2%	1.8%

Source: SQM Research

Brisbane

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,231,687	-0.617	0.7%	12.2%
All Units	715,524	1.376	-0.5%	17.6%
Combined	1,102,063	-0.116	0.5%	12.9%

Source: SQM Research

Perth

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,128,753	3.747	0.4%	14.1%
All Units	648,449	-0.478	-0.1%	25.7%
Combined	1,002,970	2.641	0.3%	15.8%

Source: SQM Research

Adelaide

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,024,587	9.005	1.2%	13.5%
All Units	548,414	2.886	0.9%	17.3%
Combined	938,967	7.904	1.2%	13.8%

Source: SQM Research

Canberra

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,151,436	0.176	-0.2%	-4.4%
All Units	595,347	-0.735	-0.1%	-0.2%
Combined	944,632	-0.163	-0.2%	-4.0%

Source: SQM Research

Darwin

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	780,102	17.898	2.7%	17.6%
All Units	405,683	-1.183	0.3%	9.4%
Combined	633,040	10.403	2.1%	15.4%

Source: SQM Research

Hobart

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	839,595	-2.505	-0.9%	7.1%
All Units	521,918	16.382	3.5%	-1.6%
Combined	791,259	0.369	-0.4%	6.1%

Source: SQM Research

National

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	985,417	5.311	1.0%	7.1%
All Units	583,470	0.247	0.2%	7.0%
Combined	898,573	4.217	0.9%	7.0%

Source: SQM Research

Cap City Average

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,464,071	0.935	0.0%	6.3%
All Units	733,117	-1.230	0.4%	7.5%
Combined	1,246,628	0.291	0.1%	6.3%

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 markets respond positively to rate cut

Auction markets have responded positively to the May rate cut, with the volume of capital city auctions held jumping 40.8% to 2,512 last week, from 1,784 the week prior, and the preliminary auction clearance rate rising to 71.3%, the second highest early result so far this year.

Auction results saw a similar pattern after the February rate cut, with the preliminary clearance rate bouncing to 72.1% a week after the announcement (the highest so far this year), before gradually drifting lower as some exuberance left the market.

The preliminary clearance rate found a floor at 64.2% in the last week of April.

Melbourne held the most auctions last week, with 1,263 homes going under the hammer.

This was the highest auction volume since the week prior to the Easter long weekend, when 1,382 homes were auctioned.

73.7% of Melbourne auctions have recorded a successful result so far, roughly in line with the week prior (73.8% which revised down to 68.0% once finalised) and the fourth week in a row where the preliminary auction clearance rate has held above the 70% mark.

814 residential properties went to auction in Sydney last week, the highest volume since the week prior to Easter (1,282).

The preliminary clearance rate rose to 72.2%, the first 70 %+ preliminary clearance rate in ten weeks.

Over the previous week, a preliminary clearance rate of 65.3% was recorded.

Brisbane hosted the most auctions across the smaller capitals, with 201 homes taken to market last week, the second highest weekly volume of auctions so far this year.

However, the preliminary clearance rate remained relatively subdued at 58.5%, down slightly from 59.6% the week prior and a recent high of 69.7% two weeks ago.

120 homes were taken to auction in Adelaide last week, down from 130 the week prior.

The preliminary clearance rate leapt to 74.6%, up from 64.1% over the previous week.

96 auctions were held in the ACT last week, the third highest volume so far this year.

The preliminary clearance rate reached 61.1%, up from 56.6% the week prior.

Auction activity is set to rise further this week, with around 2,750 homes scheduled to go under the hammer.

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.