Key takeaways
Cotality estimates the combined value of residential real estate rose to $11.6 trillion at the end of July.
National housing values rose 1.8% over the three months to July, the highest quarterly increase seen since this time last year.
After easing for 16 consecutive months, the annual rate of growth in national home values ticked higher in July, with values up 3.7% over the year to July, up from the 3.5% lift seen over the 12 months to June.
The gap between the median capital city house and unit value reached a new record high in July, with houses demanding a 48.0% premium, equivalent to approximately $338,965. Sydney shows a remarkable 75.7% difference between the median house and unit value.
Across the capital cities, Darwin continued to lead the pace of quarterly growth, with dwelling values up 5.6% over the three months to July, followed by Perth and Brisbane, with values increasing 2.6% and 2.3% respectively.
Cotality estimates 42,801 sales occurred nationally in July, taking the rolling 12-month count to 526,747, roughly in line with the levels seen this time last year (0.4%) and 1.9% above the previous five-year average.
The national median time on market rose to 35 days over the three months to July after briefly dipping to 30 days over the three months to April.
Across the capitals, Darwin has seen the steepest pullback in median vendor discounting, from 4.1% in Q4 24 to 3.3% over the three months to July. Vendors in Melbourne (3.2%), Sydney (3.2%), and Perth (2.9%) are also offering smaller discounts compared to the three months to December 2024, while Hobart (4.7%), Canberra (3.6%), and Adelaide (3.6%) have seen discounting rates expand.
Over the four weeks to 3 August 2025, 68.3% of capital city auctions on average were successful. Sydney had the highest four-week average clearance rate at 69.6%, followed by Melbourne (67.9%), while Canberra had the lowest at 65.1%.
Gross rental yields have seen a mild decline over the quarter, with national yields falling three basis points, from 3.71% in April to 3.68% in July.
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.
The pace of annual rental growth across Australia’s capital cities has picked up for the first time in more than two years, sparking concerns over renewed pressure on housing inflation, according to Cotality’s August Monthly Housing Chart Pack.
Cotality’s capital city rental value index rose 3.0% in the year to July, up from 2.7% in June, marking the end of a 16-month run of moderating or stable rental growth.
Cotality Economist Kaytlin Ezzy said the trend bears watching, given the significant weighting rents have in the consumer price index (CPI) basket.
She further said:
“The housing component makes up more than one-fifth of the CPI basket, with rents alone accounting for 6.6%.
The latest quarterly CPI data from the ABS showed that rents-paid rose 4.5% over the year to June, down from the 7.8% rise seen over the year to March 2024.
While this easing of growth reflects an overall moderation in rental demand amid normalising net overseas migration and an uptick in average household size, the ABS noted that the annual growth in rents-paid would have been higher had it not been for changes in Commonwealth Rent Assistance reducing the amount payable for eligible tenants.”
Annual change in rents - Cotality capital city rental index v CPI rents-paid
She further explained:
“Given the strong, albeit lagged, correlation between the CPI’s rents-paid and changes in the Cotality rental value index, the recent uplift is a trend to watch.
Adding to the concern for housing inflation is the mild uptick in construction costs, with the annual change in the Cordell Construction Cost Index rising 2.9% over the year to June, up from 2.6% over the 12 months to June 2024.
While still well below the pre-covid decade average of 4.0%, this re-acceleration mirrors the recent quarterly increases in the ‘new dwellings’ component of the CPI basket, the only subcomponent with a larger weighting than rents (7.6%).”
With both rents and construction costs indicators trending higher, we could see housing inflation rise in the coming months, which, if it feeds back into the inflation outlook, could lower the chance of future rate cuts."
Residential real estate underpins Australia's wealth
- The total value of Australian residential real estate was $11.6 trillion at the end of July2025
- 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.
Australian dwelling values
- The rolling quarterly trend for national dwelling values came in at 1.8% over the three months to July, the highest quarterly increase seen since this time last year.
- After easing for 16 consecutive months, the annual rate of growth in national home values ticked higher, with values up 3.7% over the year to July, up from the 3.5% lift seen over the 12 months to June.
- The gap between the median capital city house and unit value reached a new record high in July, with houses demanding a 48.0% premium, equivalent to an approximately $338,965.
- 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 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 7.3% over the last year and are currently at a record high.
- Perth property values are also up 6.5% over the year and are currently at a new record high.
- Melbourne property values are up 0.4% in July, also rose 0.5% over the year, but are still -3.4% below its record high seen in March 2022.
- In the previous darling of the housing markets, Hobart, house prices are -10.4 % below their record highs recorded in March 2022.
Sydney property values increased 1.6% over the past year and is currently at a new record high.
Here's how the Adelaide property market performed.
The Canberra housing market increased 0.5% over the last year.
Similarly, the Darwin housing market increased 8.5% last year and is currently at a new record high.
Here's how many properties are for sale at the moment
- The flow of newly advertised listings has continued to track well below average (-8.8%) through July, with just 32,481 newly listed properties nationally over the four weeks to August 3rd.
- Although we typically see fewer new listings thought winter, current numbers are -11.5% below the levels seen this time last year and are roughly in line (-0.4%) with those seen in 2020 amid covid lockdowns and viewing restrictions.
- The problem is that very few are A Grade homes or investment grade properties. Owners of quality properties are holding onto them.
- With the flow of newly advertised listings holding well below average, total stock levels have continued to decline, with properties being absorbed faster than they are added to the market.
- Over the four weeks to August 3rd, Cotality observed 121,113 total listings nationally, -9.5% below the counts seen this time last year and -19.4% lower than the average levels usually seen this time of year.
Transaction volumes
- Cotality estimates 42,801 sales occurred nationally in July, taking the rolling 12-month count to 526,747, roughly in line with the levels seen this time last year (0.4%) and 1.9% above the previous five-year average.
- Across the combined capitals, annual sales activity was down -0.9% year-on-year but was 3.7% above the historic average.
- In contrast, regional sales counts came in 3.0% higher than last year but -1.2% below the average.
It's taking longer to sell a home
- The national median time on market rose to 35 days over the three months to July after briefly dipping to 30 days over the three months to April.
- Relative to this time last year, selling times have increased across all capitals except Darwin (43 days, down 12 days).
- Hobart (49 days) saw the largest increase in median days on market, followed by Sydney (39 days) and Brisbane (23 days), up twelve, eight and seven days, respectively.
Vendor Discounting
- The median vendor discounting rate has steadily reduced since the start of 2025, with sellers offering smaller discounts in order to secure a sale.
- Across the capitals, Darwin has seen the steepest pullback in median discounting, from 4.1% in Q4 24 to 3.3% over the three months to July.
- Vendors in Melbourne (3.2%), Sydney (3.2%), and Perth (2.9%) are also offering smaller discounts compared to the three months to December 2024, while Hobart (4.7%), Canberra (3.6%), and Adelaide (3.6%) have seen discounting rates expand.
Auction clearance rates
- Auction clearance rates continued to trend higher in July, with the combined capitals reaching a 17-month high over the week ending 20 July 2025 (69.4%).
- Over the four weeks to 3 August 2025, 68.3% of capital city auctions on average were successful.
- Sydney had the highest four-week average clearance rate at 69.6%, followed by Melbourne (67.9%), while Canberra had the lowest at 65.1%.
- We update the weekly auction clearance results here each week.
We're still experiencing a rental market crisis in Australia
- The Cotality Rental Value Index ticked higher last month with national rents up 3.7% over the year to July, up from the 3.4% increase seen over the 12 months to June.
- This re-acceleration comes following 16 consecutive months of a falling or stable pace of rental growth, with Darwin (7.3%), Brisbane (4.6%) and Sydney (2.4%) leading the uptick across the capitals, up 90, 70 and 50 basis points respectively relative to the year to June.
- Gross rental yields have seen a mild decline over the quarter, with national yields falling three basis points, from 3.71% in April to 3.68% in July.
- Over the quarter, Darwin recorded the strongest tightening in capital city yields, falling -15 basis points to 6.4%, followed by Perth (4.2%) and Adelaide (3.7%), down nine and five basis points respectively.
- Hobart (4.4%) and Canberra (4.1%) were the only capitals to see yields expand over the quarter, up five and one basis points, respectively.
Dwelling approvals and housing credit
- In June, dwelling approvals saw the strongest monthly gain in over two years, surging 11.9% month-on-month.
- The monthly rise came despite a -1.5% dip in house approvals, with the low-density segment falling for the second consecutive month and was instead driven by a 33.9% bump in medium-to-high density sector.
- The monthly uplift in unit approvals was not universal however with the uplift in approvals concentrated in the ACT (+613), QLD (+500) and SA (+103).
Finance and Lending
- The volume and value of new home loan commitments fell in the March quarter, down -3.5% and -1.6%, respectively.
- Both owner-occupiers (-3.4%) and investors (-3.4%) drove the decline in quarterly loan volumes, while a more substantial fall in the value of loan commitments was seen in owner-occupiers lending (-2.5%), compared with investors (-0.3%).
- The value of first home buyer financing fell -3.4% over the March quarter, driven by declines in SA (-6.1%), QLD (-2.1%) and WA (-0.9%).
- As a portion of new owner-occupier lending, first home buyers lending trended lower, comprising 29.0% in Q1 – the lowest portion since the three months to December 2022 (27.6%).
- Despite this, most states are still seeing first-home buyers as a portion of owner-occupier lending above historic decade averages.
Source of charts: CoreLogic Chart Pack, August 2025.
- Also read:Latest Property Price Forecasts Revealed. Australian Property Market Outlook 2025–26: Where Prices Are Headed After Three Rate Cuts.
- Also read:This week’s Australian Property Market Update – Latest Data, State by State August 26th 2025
- Also read:Everything you need to know about the state of Australia’s property markets in 20 charts – August 2025
- Also read:Melbourne property market forecast for 2026 | Is it a good time to invest in Melbourne?
- Also read:Sydney property market forecast for 2026. Is it a good time to invest in Sydney?
