By Michael Yardney March 24, 2025

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This week’s Australian Property Market Update – Latest Data, State by State March 25th 2025

Property Market News
This week’s Australian Property Market Update – Latest Data, State by State March 25th 2025

Key takeaways

The first interest rate cut in five years was welcome news for our housing markets.

Though modest, this rate cut is not just about the potential savings for homeowners; it's primarily a psychological boost that should reignite confidence in our housing market, in the effects are already starting to show

This week, CoreLogic Research reports that:

*Sydney property prices remained flat over the last week, increased 0.4% over the last month and are 0.9% higher than they were 12 months ago.

*Melbourne property prices increased 0.2% over the last week, increased 0.5% over the last month, and are -3.1% lower compared to 12 months ago.

*Brisbane property prices increased 0.1% over the last week, increased 0.2% over the last month and are 8.8% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.4% over the last month and are now 3.0% higher than they were 12 months ago.

There were 2,435 capital city homes taken to auction last week, down slightly week-on-week (2,472).

The preliminary clearance rate came in at 68.7% across the combined capitals last week, down from 69.1% the previous week (finalised at 63.0%)

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.

The first interest rate cut in five years was welcome news for our housing markets.

Though modest, this rate cut is not just about the potential savings for homeowners; it's primarily a psychological boost that should reignite confidence in our housing market.

While much of the focus in the media is on the relief for homebuyers, more broadly, this move suggests interest rates have peaked and that we're now in a downward cycle on borrowing costs.

Historically, when interest rates fall, buyers who have been sitting on the sidelines are enticed back into the market and property values start to increase as buyer confidence increases before seller confidence, making these new home buyers compete for the limited stock of properties available.

Traditionally, the premium suburbs in Sydney and Melbourne have led the market in price rebounds after interest rate cuts.

Anecdotal evidence from those on the ground suggest more by interest and the latest figures from Corelogic show the interest rate cut has not only stabilised falling house prices in Melbourne and Sydney, but prices are rising as you'll see below.

On the auction front...There were 2,435 capital city homes taken to auction last week, down slightly week-on-week (2,472).

The preliminary clearance rate came in at 68.7% across the combined capitals last week, down from 69.1% the previous week (finalised at 63.0%)

According to CoreLogic, this is the lowest preliminary clearance rate since early-February

See Corelogic's full auction report below.

This week, CoreLogic also reports that:

Sydney property prices remained flat over the last week, increased 0.4% over the last month and are 0.9% higher than they were 12 months ago.
Melbourne property prices increased 0.2% over the last week, increased 0.5% over the last month, and are -3.1% lower compared to 12 months ago.

Brisbane property prices increased 0.1% over the last week, increased 0.2% over the last month and are 8.8% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.4% over the last month and are now 3.0% higher than they were 12 months ago.

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

Source: CoreLogic March 24th 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 17th March 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	1,990,414	1.086	0.8%	5.3%
All Units	840,355	-1.555	0.7%	5.6%
Combined	1,523,234	0.014	0.8%	5.1%

Source: SQM Research

Melbourne

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,258,819	-2.086	0.5%	0.3%
All Units	621,193	2.307	1.0%	2.4%
Combined	1,057,813	-0.701	0.6%	0.5%

Source: SQM Research

Brisbane

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,208,366	3.083	1.3%	13.6%
All Units	708,466	4.634	2.0%	21.2%
Combined	1,083,001	3.472	1.4%	14.7%

Source: SQM Research

Perth

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,113,076	6.123	0.8%	16.6%
All Units	616,381	-0.681	1.3%	24.8%
Combined	983,079	4.342	0.8%	17.8%

Source: SQM Research

Adelaide

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,009,098	-7.523	0.5%	15.1%
All Units	529,085	-2.785	0.5%	19.2%
Combined	922,822	-6.671	0.5%	15.4%

Source: SQM Research

Canberra

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,182,498	-8.386	-0.7%	-1.8%
All Units	592,143	-3.018	-1.3%	-1.1%
Combined	963,766	-6.397	-0.9%	-2.1%

Source: SQM Research

Darwin

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	734,196	6.604	1.7%	11.4%
All Units	397,861	0.889	-1.6%	5.2%
Combined	602,153	4.360	0.8%	9.7%

Source: SQM Research

Hobart

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	813,911	-0.275	0.3%	1.8%
All Units	502,252	0.448	-0.1%	-1.0%
Combined	766,726	1.323	0.4%	1.3%

Source: SQM Research

National

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	975,291	3.776	1.3%	7.3%
All Units	575,446	-1.743	0.3%	7.6%
Combined	889,017	2.585	1.2%	7.3%

Source: SQM Research

Cap City Average

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,436,685	-4.735	0.8%	6.1%
All Units	720,424	-1.098	0.6%	7.3%
Combined	1,223,942	-3.655	0.7%	6.1%

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

Lowest preliminary clearance rate since early February

The preliminary clearance rate came in at 68.7% across the combined capitals last week, down from 69.1% the previous week (finalised at 63.0%), to be the lowest preliminary clearance rate since the week ending 9th February 2025 (67.4%).

There were 2,435 capital city homes taken to auction last week, down slightly week-on-week (2,472).

This time last year was the week leading up to Easter, so auction activity was much higher across the combined capitals (3,519).

Across Melbourne, 1,249 homes were taken to auction last week, up from 1,192 the previous week.

Melbourne’s preliminary clearance rate came in at 70.6%, up 30 basis points from the 70.3% rate recorded the week prior (revising down to 63.8% on final numbers).

837 homes went under the hammer in Sydney, down from 893 the previous week.

The preliminary clearance rate slipped to 69.1% last week, after holding above the 70% mark for the past six weeks.

The previous week’s preliminary clearance rate came in at 71.4% before revising down to 64.3% at final numbers.

Brisbane hosted the most auctions across the smaller capitals, with 148 homes taken to auction.

A preliminary clearance rate of 61.5% has been reported — the highest preliminary clearance rate the city has seen so far this year and up from 59.0% the week prior (which was revised down to 52.2% on final numbers).

There were 113 auctions in Adelaide last week, returning an early clearance rate of 60.8%, the lowest preliminary clearance rate recorded so far this year.

76 auctions were held in the ACT last week, down from 87 the previous week.

Of the results reported so far, 60.8% were successful, up from 57.4% one week earlier (revising down to 50.6% on final numbers).

There were just 10 auctions held in Perth last week, five of which have so far reported a successful result, while neither of the two auctions held in Tasmania have returned a successful result.

Our rental markets

According to CoreLogic, national rents rose by 0.6% in February, the strongest monthly gain since May last year, but well below the 0.9% rise recorded in February last year or the 1.2% gain seen in February 2021 at the height of the rental boom.

Nationally, rents rose by 4.1% over the 12 months to February, the slowest annual gain since the 12 months ending March 2021.

Despite the slowdown, the annual change in rents is tracking about double the pre-pandemic decade average of 2.0%.