By Michael Yardney March 17, 2025

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This week’s Australian Property Market Update – Latest Data, State by State March 18th 2025

Property Market News
This week’s Australian Property Market Update – Latest Data, State by State March 18th 2025

Key takeaways

The first interest rate cut in five years is 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 increased 0.1% over the last week, increased 0.5% over the last month and are 1.0% higher than they were 12 months ago.

*Melbourne property prices remained flat over the last week, increased 0.4% over the last month, and are -3.2% 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 9.1% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.4% over the last month and are now 3.1% higher than they were 12 months ago.

The number of auctions held bounced back to 2,550 last week, following a step down to 1,572 the week prior due to the long weekends and natural disasters in some states.

The combined capitals preliminary auction clearance rate continued its gradual fade, coming in at 69.1% last week, down from 69.6% the week prior (finalised at 62.3%) and 3.0 percentage points below the recent high of 72.1% recorded in the last week of February.

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.

Even though the RBA warned that further interest rate cuts are not guaranteed this first cut signals greater clarity after a long period of uncertainty on the direction of interest rates should have a positive impact on not only homebuyer and seller confidence but also business confidence and the RBA's decision will help them make longer-term decisions.

On average homebuyers will have an extra $100 a month in their budgets after lenders reduced home loan rates by 0.25%.

Not all borrowers will spend this extra money. Some will continue to pay down their loans or increase savings or put it in the offset accounts.

But in aggregate this will be good for the economy and for businesses.

And the fear of being caught in rising interest rates after purchasing a home or investment property is significantly reduced, which should encourage more Australians to buy.

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 Call logic show the interest rate cut has stabilised house prices in Melbourne and Sydney.

On the auction front... the number of auctions held bounced back to 2,550 last week, following a step down to 1,572 the week prior due to the long weekends and natural disasters in some states.

According to CoreLogic, preliminary clearance rate of 69.1% recorded across combined capitals .

See Corelogic's full auction report below.

This week, CoreLogic also reports that:

Sydney property prices increased 0.1% over the last week, increased 0.5% over the last month and are 1.0% higher than they were 12 months ago.
Melbourne property prices remained flat over the last week, increased 0.4% over the last month, and are -3.2% 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 9.1% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.4% over the last month and are now 3.1% higher than they were 12 months ago.

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

Source: CoreLogic March 17th 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	1,988,378	8.622	0.7%	5.0%
All Units	841,309	0.691	0.8%	5.9%
Combined	1,522,413	5.139	0.7%	4.9%

Source: SQM Research

Melbourne

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,260,655	3.111	0.7%	1.2%
All Units	617,936	1.064	0.4%	2.1%
Combined	1,058,043	2.339	0.7%	1.1%

Source: SQM Research

Brisbane

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,204,233	4.352	1.0%	13.8%
All Units	702,631	2.669	2.6%	20.6%
Combined	1,078,442	3.840	1.3%	14.7%

Source: SQM Research

Perth

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,106,952	2.948	0.1%	15.8%
All Units	619,413	0.990	2.4%	26.8%
Combined	979,352	2.376	0.4%	17.4%

Source: SQM Research

Adelaide

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,015,520	2.340	1.2%	16.4%
All Units	532,620	-0.720	2.0%	20.6%
Combined	928,726	1.774	1.3%	16.8%

Source: SQM Research

Canberra

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,190,883	-4.258	0.2%	-0.9%
All Units	595,162	-1.187	-0.4%	-0.6%
Combined	970,163	-3.532	0.0%	-1.4%

Source: SQM Research

Darwin

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	727,591	2.809	0.6%	10.5%
All Units	396,972	-6.972	-2.7%	5.0%
Combined	597,792	-1.054	-0.3%	9.0%

Source: SQM Research

Hobart

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	814,187	1.176	-0.5%	-1.1%
All Units	501,805	2.395	-0.5%	-1.1%
Combined	766,726	1.323	0.4%	1.3%

Source: SQM Research

National

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	971,352	5.414	0.8%	6.7%
All Units	577,168	1.855	1.0%	7.6%
Combined	886,299	4.585	0.9%	6.7%

Source: SQM Research

Cap City Average

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,440,237	7.7810	0.9%	6.2%
All Units	720,771	-1.613	1.4%	7.5%
Combined	1,226,542	4.814	1.0%	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.

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 of 69.1% recorded across combined capitals

From a volume perspective, the number of auctions held bounced back to 2,550 last week, following a step down to 1,572 the week prior due to the long weekends and natural disasters in some states.

Melbourne hosted the most auctions, with 1,227 homes taken under the hammer, up from just 486 auctions the week prior (Labour Day long weekend).

70.3% of auctions have returned a successful result so far, the fifth week running where the preliminary clearance rate has held above the 70% mark.

Sydney also saw the preliminary auction clearance rate hold above 70%, at 71.4%.

This was a step up from the prior week (70.7%) and the sixth week running where the early clearance rate has held above the 70% mark.

921 homes went under the hammer last week, marking the third-highest volume of auctions held in a week so far this year, up from 842 the week prior.

Across the smaller capitals, Brisbane held the most auctions, with 171 homes taken to market, up from just 71 the week prior when auctions were impacted by ex-Tropical Cyclone Alfred.

The preliminary clearance rate came in at 59.0% last week, the highest so far this year.

126 homes were auctioned in Adelaide, with 62.2% reporting a successful result so far.

87 homes went under the hammer in the ACT with a preliminary clearance rate of 57.4% (lowest since the start of February).

There were 16 homes taken to auction in Perth, with an early success rate of 81.8%, while just two auctions were held in Tasmania, neither of which were successful.

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%.