Key takeaways
The total value of Australian residential real estate is now $11.8 trillion - increasing by $678 billion over the past 12 months - demonstrating the market's resilience.
National housing values are gaining momentum, rising 2.2% over the September quarter alone—the largest quarterly increase since May 2024—and could reach $12 trillion by year-end if current growth holds.
Darwin markets are setting the pace for capital growth since the first interest rate cut in February, with suburbs like Wanguri and Durack (NT) soaring by 20.1%.
Conversely, Sydney and Melbourne accounted for the majority of areas experiencing a dip in value since the rate cuts began. The largest declines were concentrated in inner-city, lifestyle suburbs, primarily those with high-density unit stock. Milsons Point in Sydney saw the greatest fall at −7.1%, with Kirribilli close behind at −6.3%.
The strongest quarterly pace of growth has rippled from the lower quartile of the market (2.4%) to the broad middle (2.5%). Nationally, the ‘middle’ of the market is dwellings valued between $648K and $1.2m.
Outside of Darwin, where values rose 5.9% in the September quarter, the ‘mid-sized’ capitals continued to lead growth, with Perth home values up 4.0%, Brisbane up 3.5% and Adelaide up 2.5%.
Cotality estimates 44,436 sales occurred nationally in September, taking the rolling 12-month count to 540,775. Annual sales were roughly in line with the number of sales this time last year.
The amount of time it takes to sell a property by private treaty has increased year-on-year to 30 days nationally, but results vary depending on the market. For example, the recent strength in the Darwin market has driven down selling times from 51 days in the September quarter last year to just 39 days. In Melbourne, selling times have fallen from 35 to 32 days year-on-year.
The discounts offered by sellers are generally smaller than they were a year ago amid rising buyer activity and low stock levels. The vendor discounting rate shrank from 3.3% in the September quarter last year to 3.2% in the three months to September 2025.
Want to know what's happening to the housing markets around Australia?
Well... this monthly collection of charts from Cotality (formerly CoreLogic) paints an interesting picture.
Australia’s property market has reached a new milestone, with the total value of residential real estate climbing to $11.8 trillion for the first time, increasing by $678 billion over the past 12 months, according to Cotality’s October Monthly Housing Chart Pack.
The milestone comes as momentum in national housing values continues to build, with dwelling values up 2.2% over the three months to September. This is the largest quarterly increase since the three months to May 2024 (2.2%).
The annual growth trend also shifted higher for the fourth consecutive month, up from a low of 3.7% over the 2024-25 financial year, to 4.8% in the 12 months to September.
Cotality’s Head of Research for Australia, Eliza Owen, said: “This $11.8 trillion milestone is a clear testament to the resilience of Australia's property market, where national dwelling values are now up 4.8% over the past year.”
She further said:
"We're seeing a clear building of momentum, with a 2.2% rise over the September quarter alone, the largest quarterly increase since May 2024.
“At the moment, there’s some uncertainty around the timing of another cash rate reduction, and inflation impacting market momentum through to the end of the year.
However, if the property market were to continue at its current rate of growth, it’s possible the combined market value could hit $12 trillion by the end of the year.”
Which market values have changed the most (or least) amid rate cuts so far?
Drilling down into the performance of individual suburbs reveals where the market has thrived most decisively since the first interest rate cut in February.
This period, between the end of February and September 2025, highlights the markets responding strongest to lower borrowing costs and tight supply.
Cotality’s analysis of suburb-level dwelling values since February shows a clear trend: Darwin markets are setting the pace for capital growth.
Suburbs like Wanguri and Durack (NT) both led the nation with outstanding growth of 20.1% in that time.
This surge in Darwin suburbs reflects a powerful combination of relative affordability, extremely low levels of housing supply, and a notable lift in investment activity.
Conversely, Sydney and Melbourne accounted for the majority of areas experiencing a dip in value since the rate cuts began.
The largest declines were concentrated in inner-city, lifestyle suburbs, primarily those with high-density unit stock. Milsons Point in Sydney saw the greatest fall at −7.1%, with Kirribilli close behind at −6.3%.
Ms Owen said this reflected market dynamics more broadly.
She further explained:
“Even though we’ve gone hyper-local with the suburb analysis, the data highlights a broader trend of Darwin leading Australia’s capital growth trend. City home values are up 13.4% through the year to date. It’s a relatively affordable market, and investors may be taking note of high yields and rapid value increases.”
“Some of the top performing regional markets were also the most affordable, such as Boggabri in regional NSW and Rochester in regional Victoria, each dwelling market with a median below $400,000.”
“With other capital city and major regional markets soaring in value over the past few years, it seems like buyers are targeting what is left of the affordable land and housing across the country as interest rates fall and rents re-accelerate.”
Residential real estate underpins Australia's wealth
- The total value of Australian residential real estate was $11.8 trillion at the end of September 2025.
- Outstanding mortgages against all residential housing are only $2.5 trillion - a very comfortable 21% Loan to Value ratio.
- 55.5% of total Aussie household wealth is held in residential property - one of the many reasons neither the banks, the government nor the RBA wants a property crash.
Australian dwelling values
- Momentum in national housing values has continued to build, with dwelling values up 2.2% over the three months to September. This is the largest quarterly increase since the three months to May 2024 (2.2%).
- The annual growth trend also shifted higher for the fourth consecutive month, up from a low of 3.7% over the 2024-25 financial year, to 4.8% in the 12 months to September.
- The strongest quarterly pace of growth has rippled from the lower quartile of the market (2.4%) to the broad middle (2.5%). Nationally, the ‘middle’ of the market is dwellings valued between $648K and $1.2m.
- However, as a property investor you can always outperform the average.
Our capital city markets are fragmented
Our housing markets are fragmented with each state performing differently depending on local economic and market factors.
For quite some time the lower quartile across every capital city recorded a stronger outcome for housing values, now the middle 50% of the market is performing strongly.
The following chart shows how various price segments of each capital city market are performing differently.
Each State is running its own race
One star performer was Brisbane where property values increased 8.8% over the last year and are currently at a record high.
- Perth property values are up 7.5% over the year and are currently at a new record high.
- Sydney property values increased 3.0% over the past year and are currently at a new record high.
- Melbourne property values are up 0.5% in September, \ rose 1.9% over the year, but are still -2.7% below the record high seen in March 2022.
- In the previous darling of the housing markets, Hobart, house prices are -9.5 % below their record highs recorded in March 2022.
Here's how the Adelaide property market performed.
- Dwelling values in Canberra increased 2.5% over the last year.
- The Darwin housing market has performed strongly increasing 12.9% last year and is currently at a new record high.
Here's how many properties are for sale at the moment
- The flow of new listings continued to rise in the four weeks to October 5, up 8.1% from four weeks prior.
- Selling activity has increased as a result of the seasonal uplift during spring, but likely also better selling conditions as lower interest rates support higher sales values.
- Despite the flow of new listings activity rising, they are still -7.6% lower than the same time last year, and -2.1% lower than the historic five-year average.
- The problem is that very few are A Grade homes or investment grade properties. Owners of quality properties are still holding onto them.
- Total stock levels have moved subtly higher in the past four weeks, with just 122,173 properties observed for sale
nationally over the four weeks to October 5. - Since the start of spring, total listing levels have risen 2.7%.
- However, stock levels generally remain tight, sitting -19.3% below the historic five-year average for this time of year.
Transaction volumes
- Cotality estimates 44,436 sales occurred nationally in September, taking the rolling 12-month count to 540,775.
- Annual sales activity across the combined capitals is roughly in line with this time last year (0.8%), with sales up across Darwin (60.1%), Canberra (12.0%), Melbourne (8.0%) and Hobart (5.5%), but down across Adelaide (-0.8%), Brisbane (-2.3%), Perth (-3.1%) and Sydney (-4.0%).
It's taking longer to sell a home
- The amount of time it takes to sell a property by private treaty has increased year-on-year to 30 days nationally, but results vary depending on the market.
- For example, the recent strength in the Darwin market has driven down selling times from 51 days in the September quarter last year to just 39 days.
- In Melbourne, selling times have fallen from 35 to 32 days year-on-year. Sales volumes have also increased in these markets, which could be skewing the national figure.
Vendor Discounting
- The discounts offered by sellers are generally smaller than they were a year ago amid rising buyer activity and low stock levels.
- The vendor discounting rate shrank from 3.3% in the September quarter last year to 3.2% in the three months to September 2025.
- The combined capital city and regional vendor discounting rates have both eased about 20 basis points year-on-year.
Auction clearance rates
- The auction market also reflects stronger selling conditions so far this spring.
- The combined capital cities auction clearance rate has inched steadily higher, averaging 69.8% in the four weeks to September 28, up from 69.5% in the previous four-week period, and 61.8% in the equivalent period of last year.
- We update the weekly auction clearance results here each week.
We're still experiencing a rental market crisis in Australia
- The annual rate of growth in rents continued to lift for a third consecutive month, with rents up 4.3% over the year to September nationally.
- Both the combined capitals and regions have seen momentum build in rent growth.
- Between the June and September quarters, annual rent growth in the capital cities increased most rapidly in the Brisbane dwelling market, from 3.9% to 5.6%.
- National gross rent yields have dipped marginally to 3.65% in September.
- This this has eased gradually from a high of 3.73% in February 2023.
- In the short term, further easing in gross rent yields may be expected at the national level, with average monthly increases in home values generally outpacing growth in rents through the year-to-date.
Dwelling approvals and housing credit
- Monthly dwelling approvals were down 6.0% in August, led by a drop in unit approvals of almost 10.6% in the month.
- The less volatile house segment also saw a drop in approvals of around 2.9%.
- There is a clear trend of new dwelling approvals running below the decade average (the decade average is about 16,700 per month), for seven out of eight months so far this year.
Finance and Lending
- The volume and value of new home loan commitments rose in the June quarter, up 1.9% and 2.0%, respectively.
- Investors drove the increase in volume, with loan commitments rising 3.5% over the quarter compared to the 0.9% lift for owner occupiers.
- For loan value, however, owner occupiers accounted for most of the rise, with the total value of commitments up 2.4%, versus a 1.4% increase in total investor loan value.
- First home buyer financing edged higher over the June quarter, helping to unwind some of the declines seen through the March quarter.
- FHB loan volumes rose 1.7% over the quarter, led by strong gains in TAS and the NT, up 15.4% and 13.6% respectively.
- At $16.3 billion, the total value of FHB loan commitments (5.7%) also climbed higher, with TAS (10.6%) and ACT (8.3%) posting the largest increases across the states and territories.
Source of charts:Cotality Monthly Housing Chart Pack, October 2025
- Also read:This week’s Australian Property Market Update – Latest Data, State by State October 14th 2025
- Also read:Melbourne property market forecast for 2026 | Is it a good time to invest in Melbourne?
- Also read:Latest Property Price Forecasts Revealed. Australian Property Market Outlook 2026: Where To For Prices With Rate Cuts Delayed.
- Also read:Sydney property market forecast for 2026. Is it a good time to invest in Sydney?
- Also read:Brisbane Property Market Forecast [2026] – What’s Ahead & Where to Invest
