Key takeaways
The national median house price fell 0.8% in the February quarter, reaching $1,151,730.
This marks the first consecutive monthly decline since January 2023.
The rate of decline is the sharpest since September 2022, when rapid interest rate hikes constrained the market.
National median unit price rose by 0.2% over the February quarter, reaching $658,528.
Despite early declines, home prices are expected to grow in 2025, although at a slower pace than in 2024.
Lower interest rates and a strong economy will continue to support demand and price stability.
National house prices have continued to fall into 2025, with February reporting monthly declines for most capitals.
The national capital city median house price declined by 0.8% to $1,151,730 over the February quarter compared to the January quarter results, according to the latest data from My Housing Market.
The national quarterly house price has now declined over consecutive months for the first time since January 2023 with the rate of decline the highest since September 2022 when sharp increases in interest rates were constraining housing markets.
Darwin, Adelaide and Perth were the only capitals to report higher house prices over the February quarter compared to the previous January quarter, higher by 0.6%, 0.2% and 0.2% respectively.
All other capitals reported falling prices, with Melbourne lower by 0.6%, Hobart down 0.8%, Sydney lower by 1.1%, Brisbane down 1.2% and Canberra falling 3.1% over the month.
House prices have increased over the past year in Perth, Brisbane, Adelaide and Sydney, higher by 19.4%, 9.9%, 8.6% and 3.1% respectively.
Darwin annual house prices however have fallen by 0.8% with Melbourne down 1.0%, Hobart falling 1.9% and Canberra lower by 3.2%.
| Quarterly Median House Prices February 2025 | ||||
| Median | Month | 1 Year | 2 Year | |
| Sydney | $1,629,414 | -1.1% | 3.1% | 13.7% |
| Melbourne | $1,038,289 | -0.6% | -1.0% | 1.4% |
| Brisbane | $995,678 | -1.2% | 9.9% | 27.0% |
| Adelaide | $963,829 | 0.2% | 8.6% | 24.7% |
| Perth | $977,813 | 0.2% | 19.4% | 42.6% |
| Hobart | $666,341 | -0.8% | -1.9% | -4.6% |
| Darwin | $614,192 | 0.6% | -0.8% | -1.7% |
| Canberra | $917,737 | -3.1% | -3.2% | -2.4% |
| National | $1,151,730 | -0.8% | 4.8% | 14.5% |
Apartment / unit prices
By contrast to houses, national unit prices were higher over the February quarter compared to the previous January quarter, rising marginally by 0.2% to $658,528 and remained 4.7% higher than the February quarter 2024 result.
Perth was the top performer over February with unit prices rising by 1.9% followed by Adelaide up 0.8%, Hobart, Canberra and Brisbane each up 0.4%, Sydney higher by 0.1% with Melbourne prices steady.
Volatile Darwin unit prices however fell 4.7% over the month.
| Quarterly Median Unit Prices February 2025 | ||||
| Median | Month | 1 Year | 2 Year | |
| Sydney | $770,535 | 0.1% | 2.8% | 8.1% |
| Melbourne | $549,654 | 0.0% | -1.2% | 2.7% |
| Brisbane | $588,341 | 0.4% | 23.0% | 41.0% |
| Adelaide | $534,779 | 0.8% | 16.2% | 37.6% |
| Perth | $520,646 | 1.9% | 20.8% | 42.9% |
| Hobart | $556,143 | 0.4% | 16.3% | -0.6% |
| Darwin | $340,120 | -4.7% | -5.5% | -6.2% |
| Canberra | $500,688 | 0.4% | -0.3% | -1.3% |
| National | $658,528 | 0.2% | 4.7% | 11.2% |
Brisbane, Perth, Adelaide and Hobart have recorded clearly the highest annual unit price growth over the year ending the February quarter of 2025, up by 23.0%, 20.8% and 16.3% respectively.
Sydney annual unit prices are now higher by 2.8%, however, the Canberra annual unit price is down 0.3%, Melbourne 1.1% lower with Darwin falling 5.5% over the year.
- Also read:Melbourne property market forecast for 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:Sydney property market forecast for 2025
- Also read:How much of your income should you spend on a mortgage?
- Also read:Capital Gains Tax Exemptions in Australia
Comment
Capital city housing markets have continued to report generally weaker results over 2025 to date, with house prices falling again over February however with modest unit price growth over the month.
Although Brisbane and Perth have remained top performers over the past two years, February growth rates for those capitals were the lowest since September 2022.
Similarly, Sydney's monthly house price growth was its lowest since late 2022.
A weakening housing market over early 2025 reflects the usual seasonal effects of December and January holiday distractions resulting in significantly reduced buyer and seller activity, particularly in higher-priced market segments.
Robust home price rises through 2023 and 2024 generally however have predictably increased affordability barriers that are now impacting price outcomes and flattening market cycles.
2025 will likely continue to produce solid results in the recent boom-time markets of Brisbane, Adelaide and Perth although prices growth is set to be markedly lower than the heady results of 2024.
Sydney is set to continue to report steady results with the Melbourne market likely to remain in the doldrums and awaiting a lift in confidence - particularly in the inner-suburban prestige markets that remain clear local regional underperformers.
Underlying drivers however will continue to support housing market activity generally, with the recent RBA rate cut set to refuel housing market activity and generate higher home prices through improved affordability.
The national economy remains unquestionably strong with continuing low jobless rates and surging jobs growth driving robust wage increases that will also be enhanced by recent interest rate cuts.
The return of higher levels of migration has added to chronic housing undersupply supporting high rents and low vacancy rates generally in capital city rental markets - although rising rental supply through reduced tenant demand is now consolidating with rental growth easing.
High rents and higher prices generally however continue to provide clear incentives for first-home buyers and investors chasing solid investment returns.
Capital city housing markets generally recorded higher house and unit prices over 2003 and 2024 but have predictably commenced 2025 with more subdued results consistent with holiday period markets and waning affordability.
National home prices are however still likely to record positive growth again over 2025 although lower than 2024 results but certainly supported by lower interest rates within a continuing strong economy.
