By Michael Yardney April 7, 2025

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

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

Key takeaways

Today ANZ Bank announced that it now expects the RBA to ease in May, July and August – 25bp at each meeting.

This would see the cash rate at 3.35% in August and ANZ do not rule out a 50bp cut in May if sentiment sours and the global growth outlook deteriorates sufficiently.

This week, CoreLogic Research reports that:

*Sydney property prices remained flat over the last week, increased 0.3% over the last month and are 0.8% higher than they were 12 months ago.

*Melbourne property prices remained flat over the last week, increased 0.5% over the last month, and are -2.5% lower compared to 12 months ago.

*Brisbane property prices remained flat over the last week, increased 0.4% over the last month and are 8.3% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.4% over the last month and are now 2.9% higher than they were 12 months ago.

There were 2,532 auctions held across the combined capitals last week.

The preliminary auction clearance rate strengthened last week, rising to 70.7%.

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

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

The RBA kept rates on hold last week, but if they were uncertain what to do with interest rates only a week ago, I can imagine that their heads would be spinning now after Liberation Day.

After the Reserve Bank Board kept interest rates on hold in April, financial market pricing suggested there was a 70 per cent chance that the RBA would cut rates in May.

But after Trump's tariff plan was announced last week, that jumped to a 90 per cent chance. Financial markets also think there will be another rate cut by August, and a third by November.

Today ANZ Bank announced that it now expects the RBA to ease in May, July and August – 25bp at each meeting.

This would see the cash rate at 3.35% in August and ANZ do not rule out a 50bp cut in May if sentiment sours and the global growth outlook deteriorates sufficiently.

On the auction front...There were 2,532 auctions held across the combined capitals last week.

The preliminary auction clearance rate strengthened last week, rising to 70.7%.

According to CoreLogic, Preliminary clearance rate improves across most capitals week-on-week.

See Corelogic's full auction report below.

This week, CoreLogic also reports that:

Sydney property prices remained flat over the last week, increased 0.3% over the last month and are 0.8% higher than they were 12 months ago.
Melbourne property prices remained flat over the last week, increased 0.5% over the last month, and are -2.5% lower compared to 12 months ago.

Brisbane property prices remained flat over the last week, increased 0.4% over the last month and are 8.3% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.4% over the last month and are now 2.9% higher than they were 12 months ago.

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

Source: CoreLogic April 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.

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 April 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	1,998,243	-12.153	0.9%	4.9%
All Units	844,012	0.388	0.4%	5.5%
Combined	1,529,369	-7.059	0.8%	4.7%

Source: SQM Research

Melbourne

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,264,398	1.990	0.5%	0.7%
All Units	623,398	2.002	1.1%	2.9%
Combined	1,062,328	1.994	0.6%	0.9%

Source: SQM Research

Brisbane

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,216,703	-0.968	1.4%	13.8%
All Units	713,366	3.134	1.9%	20.3%
Combined	1,090,477	0.060	1.5%	14.7%

Source: SQM Research

Perth

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,119,890	4.002	1.4%	16.0%
All Units	651,971	5.673	5.4%	29.1%
Combined	997,425	4.439	2.1%	18.0%

Source: SQM Research

Adelaide

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,016,488	2.312	0.3%	15.2%
All Units	536,834	-1.634	0.7%	21.3%
Combined	930,277	1.603	0.4%	15.7%

Source: SQM Research

Canberra

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,164,833	-7.471	-2.5%	-1.4%
All Units	598,623	3.364	0.4%	0.8%
Combined	955,048	-3.457	-1.9%	-1.4%

Source: SQM Research

Darwin

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	735,099	-1.499	1.4%	10.7%
All Units	400,715	1.785	-0.8%	7.0%
Combined	603,822	-0.210	0.8%	9.7%

Source: SQM Research

Hobart

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	822,802	1.925	1.2%	2.4%
All Units	504,538	4.062	1.0%	0.1%
Combined	774,447	2.250	1.2%	2.1%

Source: SQM Research

National

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	974,093	-2.588	0.8%	7.1%
All Units	579,558	0.725	0.7%	8.1%
Combined	888,965	-1.873	0.8%	7.1%

Source: SQM Research

Cap City Average

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,439,915	-11.757	0.5%	5.6%
All Units	728,564	0.541	0.9%	8.0%
Combined	1,228,631	-8.104	0.6%	5.8%

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

Preliminary clearance rate improves across most capitals week-on-week

2,532 auctions were held across the combined capitals last week, down from 2,873 the week prior and just 1,985 over the same week a year ago (the week after Easter).

Auction numbers are set to bounce higher this week, rising to around 2,860, before dropping to around 550 next week due to the Easter long weekend.

The preliminary auction clearance rate strengthened last week, rising to 70.7%, which was the highest result in six weeks. It was the first time the combined capital city preliminary clearance rate had risen above the 70% mark since the week ending February 23rd earlier this year.

Most cities recorded a rise in the preliminary clearance rate, demonstrating a broad-based improvement in auction trends despite the uncertainty of US tariff announcements and the subsequent volatility in global share markets last week.

Melbourne hosted the most auctions last week, with 1,192 homes going under the hammer. 72.9% of results have reported a successful result so far, the highest early clearance rate since July last year.

943 homes were auctioned in Sydney, returning a preliminary clearance rate of 69.1%, up from 65.5% a week prior but still well below the mid-February high point when the early clearance rate reached 76.6%.

Brisbane recorded the highest volume of auctions across the mid-sized capitals, with 170 homes going under the hammer last week.

So far, 58.3% of auction results have been reported as successful, the only capital to record a preliminary clearance rate slip relative to the prior week.

123 homes were auctioned across Adelaide, with the clearance rate bouncing higher to 87.8% - the highest for Adelaide since the week ending August 11th last year (88.9%).

90 auctions were held across the ACT last week, with a 63.3% clearance rate so far which was the highest in four weeks.

Seven auction results have been collected in Perth so far, three of which were successful, while the two auctions in Tasmania last week were both passed in.

Our rental markets

According to CoreLogic, rental values are also at record highs, with the national rental index up a further 0.6% in March, in line with the February increase, but well below the 1.0% increase seen this time last year.

Dwelling rents rose across every capital city in March, led by a 1.2% lift in Hobart, while Melbourne recorded the smallest monthly rent rise, up just 0.3%.

In annual terms, rental growth is clearly slowing, easing from a cyclical peak of 9.7% over the 12 months ending November 2021 to 3.8% over the past 12 months- the slowest annual change in rents since March 2021.