Key takeaways
National home prices rose 1% in June, confirming ongoing buyer confidence and the positive impact of RBA interest rate cuts in February and May.
Auction clearance rates remain strong, even with reduced listings due to school holidays. The clearance rate hit 74.4%, up from 68.7% the previous week.
Vacancy rates across all capitals remain below 2%, underscoring continued supply shortages and upward pressure on rents.
Despite the chill of mid-winter, Australia’s property markets continue to display resilience, with rising property values, tight rental conditions, easing inflation, and robust auction clearance rates providing plenty for investors and homeowners to watch.
Last week, we reported the latest housing market data from My Housing Market, which showed that nationally, home prices rose 1% in June, reflecting the significant impact of the RBA's interest rate cuts in February and May on affordability and market confidence.
And by the time you watch this report, the RBA will have made its July decision.
At the same time, the rental markets across the country remain under intense pressure, with vacancy rates still stubbornly low and competition fierce among tenants. So in this week’s Property Insider chat, I discuss My Housing Market’s latest rental report with their chief economist, Dr. Andrew Wilson.
And I also get his thoughts about the encouraging signs we’re seeing on the inflation front in the latest auction clearance results.
Rental markets remain tight
Watch this week’s Property Insider video chat as Dr. Andrew Wilson explains how capital city rental markets have continued to report tight results over June, following the sharp increase in tenant demand over May.
While rents are expected to rise in the second half of the year, house rents were mostly steady over the month, with Darwin the only capital city to record an increase, up by 10.1%.
Rents in Hobart fell 0.2% with Melbourne down 0.4% and Canberra lower by 1.1%
Sydney continued to report the highest house rents in capital cities over June, remaining steady at $800 per week. Hobart was still the most affordable, but slightly lower at $580 per week.
Most capitals have seen solid annual rises in house rents, with Darwin leading at 8.8%, Hobart increasing by 5.5%, Adelaide up 4.5%, Canberra rising 3.3%, Perth increasing by 2.2%, and Brisbane higher by 1.6%.
Sydney and Melbourne rents, however, have fallen by 2.4% and 2.9% respectively over the year.
All capitals reported steady house vacancy rates over June, with all remaining at low levels and well below 2% indicating shortages of available homes and likely to eventually place upward pressure on rents.
Capital city unit rental markets also remained relatively tight over June, although vacancy rates were slightly higher in Adelaide, Hobart, and Melbourne.
Canberra again led the month with unit rents up by 1.1%, followed by Hobart and Melbourne, each up by 0.8%, and Perth increasing by 0.4%.
Sydney and Brisbane unit rents were steady, with Darwin falling again, down by 2.3% and Adelaide lower by 3.6% over the month.
- Also read:This week’s Australian Property Market Update – Latest Data, State by State July 8th 2025
- Also read:Auction Report July 5th | More Strong Auction Results to Begin July
- Also read:Latest Property Asking Prices State by State | New Listings Drop 9.1% in June 2025
- Also read:Falling interest rates drive an acceleration of growth in housing values through Q2 | Latest Cotality Data
- Also read:Lower Interest Rates Drive Home Prices Higher and Higher Over June | Latest Housing Market Stats Dr. Andrew Wilson
Annual unit rents have increased in Canberra, Perth, Hobart, Adelaide and Brisbane up 8.9%, 7.6%, 7.0%, 6.0% and 3.2% respectively. Melbourne rents were steady over the year with Sydney down 0.7%
Sydney remains the clear leader with weekly unit rents steady at $750, while Hobart continues to be the most affordable, at $495 per week.
Similar to houses, capital city unit vacancy rates remain at low levels, all well below 2.0%.
Rental markets continued to report tight conditions through June, reflecting higher demand after the easing holiday distractions over April, which has helped keep vacancy rates generally low.
Rental markets remain generally challenging for tenants, with strong competition for available houses and units in most capital cities likely to result in higher rents.
Inflation moves back toward target
Watch this week’s Property Insider video chat as Dr. Andrew Wilson explains how inflation data for May revealed a welcome slowdown:
- Annual headline inflation fell to 2.1% (down from 2.4% in April).
- Underlying inflation eased to 2.4%, firmly within the RBA’s 2-3% target range.
- Notably, annual rent price growth slowed slightly to 4.5%, while government electricity subsidies helped keep headline inflation contained.
Oil prices stabilise
Dr. Wilson also explains how oil prices, a key input into inflation, have fluctuated significantly over the past two years.
The latest figures show prices hovering around USD $67.88 per barrel, a marked decline from highs of over $120 in mid-2022.
This easing trend is expected to reinforce lower fuel costs for households and businesses.
More strong auction results to begin July
Capital city home auction markets have continued to report generally strong results, although auction numbers declined, reflecting the start of school holidays.
the past week, which was again higher than the 68.7% reported the previous week and the 70.1% from the same week last year.
Buyer activity continues apace into the mid-winter auction market with the rising prospect of an upcoming RBA rate cut adding to market confidence.
