By Michael Yardney October 13, 2025

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This week’s Australian Property Market Update – Latest Data, State by State October 14th 2025

Property Market News
This week’s Australian Property Market Update – Latest Data, State by State October 14th 2025

Key takeaways

Most property investors are wondering when the next rate cut is coming.

Since the latest CPI figures came in slightly higher than most economists expected, our 4 major banks revised their cash rate forecasts.

Three banks expect just one more cut in the cycle.

Westpac is now the outlier, still forecasting three further cash rate cuts in November, February and May. However, its economics team said a November cut was “far from assured”.

This week, Cotality also reports that:

*Sydney property prices increased 0.2% over the last week, increased 0.8% over the last month and are 3.3% higher than they were 12 months ago.

*Melbourne property prices increased 0.2% over the last week, increased 0.5% over the last month, and increased 2.2% compared to 12 months ago.

*Brisbane property prices increased 0.3% over the last week, increased 1.3% over the last month and are 9.2% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.9% over the last month and are now 4.6% higher than they were 12 months ago.

Clearly, the property cycle is mov

There were 2,613 homes taken to auction across the combined capitals last week, up 33.5% on the previous week when auction activity was impacted by a long weekend in four of the eight states and territories (1,958).

The combined capital city preliminary clearance rate rose to 73.0% last week – the highest in three weeks.

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.

Most property investors are wondering when the next rate cut is coming.

Since the latest CPI figures came in slightly higher than most economists expected, our 4 major banks to revise their cash rate forecasts.

Three banks expect just one more cut in the cycle.

Westpac is now the outlier, still forecasting three further cash rate cuts in November, February and May. However, its economics team said a November cut was “far from assured”.

Lucy Ellis, Westpac chief economist, explained…

“ It’s almost certain that RBA has not yet decided whether or not to cut the cash rate at its November meeting.

If the meeting were held today, they would keep rates on hold, awaiting further data.

Several potentially decisive data releases are due before the actual meeting, though, including the September labour data and the full quarterly CPI. Until then, we need to hold two possible futures in mind: hold or cut.

If the RBA does hold the cash rate steady at the November meeting, the chance increases that it cuts in February and ends up at a trough of 2.85% rather than something higher.”

On the auction front this week... preliminary auction clearance rate rises across combined capitals

The combined capital city preliminary clearance rate rose to 73.0% last week – the highest in three weeks.

See Cotality's full auction report below.

This week, Cotality also reports that:

Sydney property prices increased 0.2% over the last week, increased 0.8% over the last month and are 3.3% higher than they were 12 months ago.
Melbourne property prices increased 0.2% over the last week, increased 0.5% over the last month, and increased 2.2% compared to 12 months ago.

Brisbane property prices increased 0.3% over the last week, increased 1.3% over the last month and are 9.2% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.9% over the last month and are now 4.6% higher than they were 12 months ago.

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

Weekly Change 13 October

Monthly Change 13 October

12 Month Change 13 October

Source: Cotality October 13th 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.

Quarterly Change In Stratified Hdi

28 Day Rolling Change Hvi

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 22nd September 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	2,108,164	8.836	1.6%	9.6%
All Units	876,686	-2.186	0.7%	4.6%
Combined	1,605,902	4.049	1.3%	8.2%

Source: SQM Research

Melbourne

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,298,951	-2.951	-0.1%	4.3%
All Units	651,758	4.242	1.7%	6.4%
Combined	1,094,194	-0.759	0.2%	4.6%

Source: SQM Research

Brisbane

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,298,898	-4.398	1.4%	10.0%
All Units	781,356	-0.556	2.5%	17.9%
Combined	1,168,547	-3.501	1.6%	11.2%

Source: SQM Research

Perth

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,162,487	3.013	-1.2%	8.6%
All Units	678,738	-0.933	1.8%	19.9%
Combined	1,035,618	1.933	-0.7%	10.3%

Source: SQM Research

Adelaide

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,065,238	-2.988	0.9%	11.6%
All Units	581,384	-0.284	1.2%	25.1%
Combined	978.137	-2.515	0.9%	12.8%

Source: SQM Research

Canberra

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,262,687	18.550	3.1%	8.2%
All Units	585,523	1.727	0.2%	-1.9%
Combined	1,008,403	11.756	2.4%	5.3%

Source: SQM Research

Darwin

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	780,426	-1.826	-0.8%	16.5%
All Units	441,609	3.556	0.0%	14.7%
Combined	646,994	0.272	-0.6%	15.9%

Source: SQM Research

Hobart

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	855,218	6.036	0.8%	7.3%
All Units	489,482	2.018	0.1%	0.9%
Combined	799,409	5.395	0.7%	6.6%

Source: SQM Research

National

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,031,380	1.834	0.5%	9.2%
All Units	614,352	5.000	1.9%	8.7%
Combined	940,960	2.457	0.7%	9.1%

Source: SQM Research

Cap City Average

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,513,440	1.370	0.5%	8.5%
All Units	760,483	-1.449	0.6%	7.0%
Combined	1,288,603	0.362	0.5%	8.0%

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 auction clearance rate rises across combined capitals

The combined capital city preliminary clearance rate rose to 73.0% last week – the highest in three weeks. The previous week’s preliminary clearance rate came in at 71.9%, revising down to 67.4% on final numbers.

Capital City Auction Statistics

Melbourne was the busiest auction market with 1,254 homes taken to auction last week, up from 1,164 the previous week.

The preliminary clearance rate, at 73.5%, was the highest in three weeks.

There were 1,003 auctions held in Sydney last week, up from 511 the week prior (Labour Day long weekend).

73.9% of auctions have returned a positive result so far, up from 72.4% the previous week (revised lower to 68.3% once finalised).

Across the smaller capitals, Brisbane hosted the most auctions, with 133 homes going under the hammer last week, compared to 148 a week earlier.

A preliminary clearance rate of 68.5% was recorded, down from 69.3% the previous week (revised to 65.5% on final numbers).

There were 106 auctions held across the ACT last, up from 57 the previous week.

So far, 61.5% of auctions have reported a successful result, down from 70.6% the week prior (68.4% once finalised).

In Adelaide, 96 homes went to auction last week, up from 65 the previous week.

An early clearance rate of 80.6% was recorded, up from 78.8% a week earlier.

There were 18 auctions in Perth last week, up from 13 the previous week, while just three auctions were held in Tasmania, after two weeks of inactivity.

Our rental markets

The national vacancy rate slipped to a new record low of 1.4% in September, with only 1.1% of Australian units and 1.7% of houses estimated to be vacant and available for lease in September.

The renewed downtrend in rental vacancies has been accompanied by a re-acceleration in rental growth. The national Rental Index rose half a per cent in seasonally adjusted terms through September, taking the quarterly change to 1.4%, the highest since June last year.

Annual Change In Rents Houses

Among the capitals, Darwin recorded the strongest quarterly increase in rents, up 2.9% in seasonally adjusted terms, followed by Hobart with a 1.9% rise and Perth, up 1.7%.

Adelaide (+0.4%) and Melbourne (+0.8%) recorded the mildest rental increases over the past three months.

Annual Change In Rents Units

Although rental growth has rebounded, we are once again seeing home values rising at a faster pace than rents, which has seen gross rental yields reduce a little in recent months.

Nationally, gross rental yields came in at 3.65% in September, the lowest since November last year.

Gross Rental Yields Dwellings