Everything you need to know about the state of Australia’s property markets in 20 charts – February 2025

Want to know what's happening to the housing markets around Australia?

Well... this monthly collection of charts from CoreLogic paints an interesting picture.

Regional property values continue to outpace their capital city counterparts, demonstrating "remarkable resilience" in a challenging market, according to CoreLogic's Housing Chart Pack for February.

The latest data shows capital city values have dipped into negative territory, down -0.7%, compared to the 1.0% growth seen in the regions over the rolling quarter.

Drilling down further, almost three-quarters of regional suburbs analysed (72.6%) saw an increase in dwelling values over the three months to January, up from just 66.2% in the September quarter.

Over the same time, the portion of capital city suburbs recording declines has increased, from around 30% (31.3%) in September to almost half (48.6%) in January.

CoreLogic Economist Kaytlin Ezzy said these mixed results could be attributed to improved relative affordability across the regions, an increase in listing levels across the capitals, and a second wind in regional internal migration.

She further said:

“After underperforming the capitals through much of 2023, the regions have regained much of the affordability advantage, with the capital city premium widening by around $50,000 over the past two years to around $240,000 in January.

With demand skewing towards the more affordable end of the market, it’s not surprising to see value growth shift away from the capitals, towards the regions, as cash-strapped buyers look further afield for more affordable markets.

The regions have also benefited from both an elevated flow of capital city residents moving to the regions, along with a reduction in the number of people leaving the regions for the capitals.

We’re almost five years on from the onset of COVID and it appears that remote and hybrid working arrangements are here to stay. With more people able to prioritise lifestyle over job location, the flow of internal migrants to regional markets has settled higher than the levels seen pre-covid, helping to support housing demand.”

• The total value of Australian residential real estate was $ 11.1 trillion at the end of January 2025
• Outstanding mortgages against all residential housing are only $2.4 trillion - a very comfortable 21% Loan to Value ratio.
• 55.9% 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.

Home values fell

• Despite values being relatively steady in the month of January, downwardly revised performance through November and December saw national home values down -0.3% over the rolling quarter.
• Annual growth in home values has slowed consistently. The annual value change over the year to January 2025 is less than half the pace of growth seen over the year to January 2024 (9.3%)
• The affordable end of the market dominated growth over the past year. Nationally, lower quartile values were up 9.4% over the year compared to a 1.5% rise seen in the more expensive upper quartile.
• However, our property markets are fragmented meaning while many segments are growing, some are languishing.
• And, of course, 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.

At the beginning of this property cycle the upper quartile of the market lead the upswing in 2023, but more recently the lower quartile across every capital city has 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.

Each State is running its own race

• On the one hand, Perth property values are up 17.1% over the year and are now at a record high.
• On the other hand, Melbourne property values, declined -0.6% over the last month, fell -3.3% over the last year,  and are now -6.9% below the record high, which was in March 2022.

• And in the previous darling of the housing markets, Hobart, house prices are -12.5 % below their record highs recorded in March 2022.

Another star performer was Brisbane where property values increased 10.4% over the last year and are currently at a record high.

Sydney property values underperformed over the past year (+1.7%) and are now -1.7% below the record high which was September 2024.

Here's how the Adelaide property market performed.

The Canberra housing market languished last year

Similarly, the Darwin housing market underperformed in the last year.

Here's how many properties are for sale at the moment

• In the four weeks to 2nd February, CoreLogic observed 34,926 new listings nationally.
• While below both the five-year average (-3.6%) and the levels seen this time last year (-3.7%), new listings have more than doubled from the seasonal lows recorded over the four weeks to 5th January (15,169).
• The problem is that very few are A Grade homes or investment grade properties. Owners of quality properties are holding onto them.
• At the national level, CoreLogic observed 130,648 for sale listings over the four weeks to February 2nd.
• Total listings levels have remained fairly subdued through the start of the year, with the count of national listings roughly in line with this time last year, and -12.8% below the previous five-year average.

Transaction volumes

• In the 12 months to January, CoreLogic estimates there were 526,410 sales.
• This is down from a recent high of 534,782 sales in the 12 months to October last year.
• The rolling six-month moving average has also dipped below historic average volumes, suggesting a slowdown in sales volumes alongside weaker value growth.

It's taking longer to sell a home

• The national median time on the market rose to 36 days over the three months to January, up from 27 days over the three months to September.
• Properties are taking longer to sell across both capital city and regional markets, with the combined capitals’ median time on the market rising from 24 days in September to 33 days in January, while the combined regions selling times rose from 36 days to 44 days over the same period.

Vendor Discounting

• Vendor discounting rates have expanded, with sellers needing to negotiate a little more in order to secure a sale.
• Across the capitals, vendors offered a median discount of -3.5% over the three months to January, up from a recent low of -2.9% in the second quarter of 2024, while the regions’ three-month median vendor discounting rate expanded from -3.6% in May to -3.8% in January.

The capital city auction market is off to a low start

• 429 homes were auctioned in the last week of January and 1,390 auctions were held over the week ending 2nd February.
• Clearance rates similarly started the year a little lower, with success rates averaging 55.8% over four weeks ending 2nd February, compared with the 57.4% average seen in the four weeks to 15th December.
• We update the weekly auction clearance results here each week.

We're still experiencing a rental market crisis in Australia

• On an annual basis, Australian rents were up 4.4%, which is still more than double the pre-COVID decade average of 2.0% annual growth.
• However, with rental growth slowing more visibly through the second half of last year, the annual change in rents is likely to fall to below average levels in the first half of 2025.

• National gross rent yields continued to hold steady at 3.7% in January, with rental yields across the combined capitals and combined regionals holding firm at 3.5% and 4.4%, respectively.
• We'll likely see renewed downward pressure on yields in 2025 as values stabilise and rental growth eases further.

Dwelling approvals and housing credit

• Dwelling approvals rose 0.7% in December, with unit approvals up 6.0% over the month and house approvals down -2.8%.
• Over the 2024 calendar year, just over 170,000 new dwellings were approved.
• Although up 3.9% compared to 2023, 2024s approval levels were -16.7% below the decade average and -40.6% below the 240,000 a year needed to meet the government’s five-year target.

Finance and Lending

• After rising for seven consecutive months, the value of new home lending fell -0.3% in September to $30.2 billion.
• Both investor (-1.0%) and first home buyer (-3.3%) financing declined over the month, while owner-occupier lending rose by just 0.1%.

• The value of first home buyer finance fell -3.3% in September to $5.2 billion.
• First-home buyers comprised 28.0% of the value of owner-occupied lending, down from a recent peak of 30.0% in April but well above the historic decade average of 24.9%.

Source of charts: CoreLogic Chart Pack, January 2025.

• Also read:Latest property price forecasts for 2025 revealed. What’s ahead in our housing markets in the next year or two?
• Also read:Property Predictions: The Dangerous Game You Shouldn’t Play!
• Also read:This week’s Australian Property Market Update – Latest Data, State by State February 25th 2025
• Also read:Brisbane’s property market forecast for 2025
• Also read:Melbourne property market forecast for 2025