Key takeaways
One of the best indicators of future property prices is auction market clearance rates, and over the weekend we had the highest preliminary clearance rate in a year.
Capital city auction markets have surged into boomtime territory as July comes to a close, showing buyer depth.
The two interest rate drops we enjoy in February and May have already lifted confidence in the housing market, with auction clearance rates strengthening and national dwelling values rising month after month.
With interest rates forecast to fall another two or three times by early 2026 and housing supply still critically low, there is little doubt that house prices will continue to rise.
This week, Cotality also reports that:
*Sydney property prices increased 0.2% over the last week, increased 0.5% over the last month and are 1.5% 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 increased 0.3% compared to 12 months ago.
*Brisbane property prices increased 0.2% over the last week, increased 0.8% over the last month and are 7.1% higher than they were 12 months ago.
Overall, Australian capital dwelling prices increased 0.6% over the last month and are now 2.9% higher than they were 12 months ago.
There were 1,774 capital city homes taken under the hammer last week
The capital’s preliminary auction clearance rate moved higher, reaching 74.7% last week.
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.
Auction clearance rates are surging, buyer activity is heating up even in the middle of winter – all signs that our markets are gathering momentum.
One of the best indicators of future property prices is auction market clearance rates, and over the weekend, we had the highest preliminary clearance rate in a year, showing the depth of buyer demand.
Clearly, the market is expecting further interest rate falls, considering Australia’s economic growth has slowed and unemployment ticked up to 4.3% from 4.1%.
Melbourne was the busiest auction market last week, with 837 homes taken to auction, a 25% jump in activity compared with the week prior (671). The preliminary clearance rate held reasonably firm from the previous week’s two-year high, slipping slightly from 76.7% to 76.3%.
This was the fifth time in six weeks the preliminary clearance rate for Melbourne has held above 75% and the 13th straight week of 70%+ early clearance rates, a sign that the Melbourne market is on the move which will be verified in a couple of days' time when the end of month results come out.
The two interest rate drops we experienced in February and May have already boosted confidence in the housing market.
With interest rates forecast to fall another two or three times by early 2026, and housing supply still critically low, there is little doubt that house prices will continue to rise.
On the auction front this week...there were 1,774 capital city homes taken under the hammer.
The capital’s preliminary auction clearance rate moved higher, reaching 74.7% last week.
This week, Cotality also reports that:
- Sydney property prices increased 0.2% over the last week, increased 0.5% over the last month and are 1.5% 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 increased 0.3% compared to 12 months ago.
- Brisbane property prices increased 0.2% over the last week, increased 0.8% over the last month and are 7.1% higher than they were 12 months ago.
Overall, Australian capital dwelling prices increased 0.6% 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: Cotality July 28th 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 28th 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 ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 2,062,261 | 10.604 | 0.3% | 7.3% |
| All Units | 862,784 | 7.316 | 2.4% | 5.1% |
| Combined | 1,573,952 | 9.265 | 0.7% | 6.5% |
Source: SQM Research
Melbourne
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,298,683 | -1.853 | -0.2% | 4.6% |
| All Units | 629,366 | 0.134 | -0.3% | 3.3% |
| Combined | 1,087,218 | -1.225 | -0.2% | 4.2% |
Source: SQM Research
Brisbane
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,252,699 | 2.239 | 0.2% | 12.3% |
| All Units | 736,956 | 2.077 | 0.6% | 17.2% |
| Combined | 1,123,023 | 2.198 | 0.2% | 12.9% |
Source: SQM Research
Perth
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,151,602 | -1.730 | 0.1% | 12.6% |
| All Units | 649,046 | 1.731 | 2.0% | 19.4% |
| Combined | 1,019,942 | -0.823 | 0.4% | 13.6% |
Source: SQM Research
Adelaide
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,045,613 | -11.046 | -1.4% | 14.6% |
| All Units | 558,823 | -3.328 | -0.5% | 23.3% |
| Combined | 958,052 | -9.658 | -1.3% | 15.4% |
Source: SQM Research
Canberra
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,220,543 | -3.556 | 3.1% | 0.8% |
| All Units | 595,767 | -1.030 | -0.5% | 0.9% |
| Combined | 987,300 | -2.613 | 2.2% | 0.3% |
Source: SQM Research
Darwin
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 796,084 | 8.916 | 2.9% | 21.5% |
| All Units | 420,611 | 1.389 | 2.7% | 11.5% |
| Combined | 648,520 | 5.958 | 2.9% | 18.8% |
Source: SQM Research
Hobart
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 842,272 | 0.909 | -0.2% | 6.8% |
| All Units | 499,919 | 1.881 | 1.8% | -1.7% |
| Combined | 790,120 | 1.057 | 0.0% | 5.9% |
Source: SQM Research
National
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,004,626 | -3.063 | 0.1% | 9.3% |
| All Units | 589,571 | 2.115 | 1.0% | 6.5% |
| Combined | 914,826 | -1.943 | 0.2% | 8.8% |
Source: SQM Research
Cap City Average
| Property type | Price ($) | Weekly Change | Monthly Change % | Annual % change |
|---|---|---|---|---|
| All Houses | 1,488,663 | 0.019 | -0.2% | 8.5% |
| All Units | 743,793 | 3.563 | 2.0% | 7.5% |
| Combined | 1,266,750 | 1.075 | 0.2% | 8.1% |
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.
READ MORE: The latest median property prices in Australia’s major cities
Last weekend's auction report
Highest preliminary clearance rate since July last year
Auction markets saw a near 14% rise in activity last week relative to the week prior, with 1,774 capital city homes taken under the hammer, up from 1,561 the previous week.
The capital’s preliminary auction clearance rate also moved higher, reaching 74.7% last week, the highest early clearance rate since the first week of July last year.
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Melbourne was the busiest auction market last week, with 837 homes taken to auction, a 25% jump in activity compared with the week prior (671).
The preliminary clearance rate held reasonably firm from the previous week’s two year high, slipping slightly from 76.7% to 76.3%.
This was the fifth time in six weeks the preliminary clearance rate for Melbourne has held above 75% and the 13th straight week of 70%+ early clearance rates.
The volume of auctions held relatively steady in Sydney, with 601 homes taken to auction last week, up 2.7% on the previous week when 585 auctions were held.
Sydney’s clearance rate trend hasn’t been as strong as Melbourne’s.
Although down one percentage point from the week prior (74.8%), at 73.8%, last week was the 7th consecutive week of
70%+ preliminary clearance rates across Sydney.
There were 190 auctions held in Brisbane last week, up from 154 the week prior and the highest volume seen since the last week of May (205).
The preliminary clearance rate, at 74.5%, was Brisbane’s second highest so far this year after the last week of June at 76.1%.
Adelaide hosted 86 auctions last week, in-line with the week prior (also 86).
The preliminary clearance rate edged below the 70% mark for the first time in two weeks, coming in at 69.1% last week.
In Canberra, 49 homes were auctioned last week, the lowest volume of auctions since the last week of April (30).
73.7% of homes have sold based on results collected so far, the highest preliminary clearance rate for the ACT since the week ending March 9th earlier this year.
The volume of auctions is set to reduce this week with approximately 1,600 homes currently scheduled for auction across the combined capitals.
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%.
Sydney
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $1,072.63 | 1.37 | 0.2% | 3.9% |
| All Units | $707.93 | 3.07 | 0.6% | 1.6% |
| Combined | $855.84 | 2.38 | 0.4% | 2.7% |
Source: SQM Research
Melbourne
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $766.87 | -1.87 | 0.4% | 3.8% |
| All Units | $573.56 | -2.56 | -0.4% | 2.4% |
| Combined | $654.03 | -2.27 | 0.0% | 3.2% |
Source: SQM Research
Brisbane
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $766.18 | 1.82 | 0.7% | 4.2% |
| All Units | $607.83 | 2.17 | 1.1% | 5.9% |
| Combined | $694.89 | 1.98 | 0.8% | 4.9% |
Source: SQM Research
Perth
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $838.27 | 3.73 | 1.5% | 7.0% |
| All Units | $655.56 | -0.56 | -0.2% | 5.3% |
| Combined | $762.54 | 1.95 | 0.9% | 6.4% |
Source: SQM Research
Adelaide
| Property Type | Rent $) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $669.26 | -0.26 | 0.0% | 2.8% |
| All Units | $521.00 | -3.00 | -0.6% | 5.9% |
| Combined | $618.93 | -1.19 | -0.2% | 3.8% |
Source: SQM Research
Canberra
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $774.50 | 3.50 | -3.1% | 0.2% |
| All Units | $588.04 | -0.04 | 1.1% | 4.8% |
| Combined | $672.59 | 1.57 | -1.1% | 2.2% |
Source: SQM Research
Darwin
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $780.12 | -33.12 | 0.0% | 16.2% |
| All Units | $553.50 | 11.50 | 0.3% | 5.2% |
| Combined | $645.97 | -6.70 | 0.2% | 10.4% |
Source: SQM Research
Hobart
| Property Type | Rent 9$) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $572.24 | 1.76 | -0.1% | 6.7% |
| All Units | $500.30 | 8.70 | -0.5% | 5.5% |
| Combined | $543.50 | 4.54 | -0.2% | 6.2% |
Source: SQM Research
National
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $717.00 | -2.00 | -1.5% | 2.9% |
| All Units | $565.00 | -1.00 | 0.4% | 3.5% |
| Combined | $646.51 | -1.54 | -0.8% | 3.1% |
Source: SQM Research
Cap City Average
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $865.00 | -1.00 | 0.2% | 4.6% |
| All Units | $643.00 | 0.00 | 0.3% | 2.9% |
| Combined | $746.94 | -0.47 | 0.3% | 3.8% |
Source: SQM Research
Sellers of good properties are on strike
After rebounding somewhat in May, the flow of new listings eased through June, with just 33,159 new properties advertised for sale nationally over the four weeks to June 29th.
Down -11.7% compared to this time last year and -9.2% below the fiveyear average, the current flow of freshly listed stock is the lowest observed for this time of year since 2020.
The shortfall in new listings, coupled with a strong absorption rate has seen total listings drift lower.
At the national level, Cotality observed 127,020 for sale listings over the four weeks to June 29th, down -11.8% from the recent March high (144,025), and -16.7% below this time of year’s five-year historic average.
Source: Cotality, July 2025
Vendor metrics
As the following chart shows, it's taking longer to sell a home.
Nationally, properties are taking longer to sell with the median time on market rising to 35 days in the June quarter, up from 34 days over the March quarter and 29 days in Q2 2024.
Over the year, Brisbane (25 days) recorded the largest increase in selling times across the capitals, up 9 days, followed by Hobart (49 days), which saw an 8-day increase.
Darwin (43 days) and Canberra (53 days) were the only capitals to see the median time on market decline over the year, with selling times falling by 12 and 3 days, respectively.
