Key takeaways
After the RBA’s three rate cuts in 2025 (February, May, and August), lower borrowing costs have reinvigorated buyer confidence and improved affordability.
This has driven broad-based gains across all capital cities, with national house prices up 1.6% in October and 8.3% over the year, the strongest monthly rise in nearly four years.
National unit prices rose for the ninth straight month, up 1.0% in October and 6.3% over the year.
Brisbane’s unit market was the clear leader, up 3.2% monthly and 19.7% annually, followed by Adelaide (+13.9%) and Perth (+12.4%).
The spring selling season, rising consumer confidence, and improved affordability are expected to sustain momentum through the rest of 2025.
Brisbane, Adelaide, and Perth are forecast to deliver double-digit growth in both houses and units, while Sydney and Melbourne continue to strengthen — Melbourne in particular showing a solid revival after lagging in 2024.
Lower interest rates continue to activate capital city housing markets generally with monthly prices growth for both houses and units accelerating over October.
The national capital city median house price surged by 1.6% over the October quarter to
$1,253,522 compared to the September quarter, according to the latest data from My Housing Market.
The October result was the highest monthly growth rate for nearly 4 years and the eighth consecutive monthly rise in national prices that have now increased by 8.3% over the past year.
All capitals reported house price increases over October with booming Darwin yet again the top performer higher by 3.3% followed by Adelaide up 2.2%, Brisbane up 2.1%, Perth higher by 1.6%, Melbourne and Hobart each up 1.5% and Sydney and Canberra each higher by 1.2%.
Darwin, Brisbane and Perth have reported the highest house price increases over the past year - higher by 18.7%, 13.0% and 11.3% respectively.
Quarterly Median House Prices October 2025
| Median | Month | This Year | 1 Year | 2 Year | |
| Sydney | $1,763,774 | 1.2% | 7.4% | 7.4% | 13.2% |
| Melbourne | $1,114,604 | 1.5% | 6.9% | 6.0% | 4.9% |
| Brisbane | $1,124,113 | 2.1% | 11.5% | 13.0% | 31.4% |
| Adelaide | $1,063,334 | 2.2% | 9.4% | 9.0% | 26.0% |
| Perth | $1,055,554 | 1.6% | 8.3% | 11.3% | 38.8% |
| Hobart | $712,940 | 1.5% | 7.0% | 3.6% | 5.4% |
| Darwin | $744,679 | 3.3% | 20.9% | 18.7% | 16.3% |
| Canberra | $1,010,580 | 1.2% | 9.2% | 6.4% | 4.8% |
| National | $1,253,522 | 1.6% | 8.2% | 8.3% | 16.3% |
Apartment / Unit Market Update
National unit prices were also higher again over the October quarter and for the ninth consecutive month, rising by 1.0% to $703,409 to remain 6.3% higher than the October quarter 2024 result.
Brisbane was yet again the top monthly performer with unit prices rising over October by 3.2% followed by a reinvigorated Melbourne up 2.0%, Adelaide up 1.6%, Sydney higher 0.3%, Perth up 0.2% and Darwin 0.1% higher.
Hobart and Canberra unit prices were lower by 1.0% and 1.3% respectively over the month.
Quarterly Median Unit Prices October 2025
| Median | Month | This Year | 1 Year | 2 Year | |
| Sydney | $806,595 | 0.3% | 4.7% | 3.8% | 7.8% |
| Melbourne | $596,330 | 2.0% | 8.4% | 5.1% | 5.0% |
| Brisbane | $671,203 | 3.2% | 14.5% | 19.7% | 50.4% |
| Adelaide | $596,248 | 1.6% | 11.5% | 13.9% | 36.3% |
| Perth | $576,519 | 0.2% | 10.7% | 12.4% | 42.9% |
| Hobart | $536,590 | -1.0% | -4.5% | 9.0% | 0.9% |
| Darwin | $383,087 | 0.1% | 8.6% | 7.4% | 9.7% |
| Canberra | $500,132 | -1.3% | -0.5% | 0.6% | -2.3% |
| National | $703,409 | 1.0% | 6.8% | 6.3% | 12.5% |
Brisbane, Adelaide and Perth have recorded clearly the highest annual unit price growth over the year ending the October quarter 2025 up by 19.7%, 13.9%, and 12.4% respectively.
Comment
Capital city home prices have continued to rise over October with housing market activity typically boosted by the spring selling season and supported by lower interest rates and heady confidence.
RBA reductions of official interest rates in February, May and August have significantly improved housing affordability and enhanced buyer and seller confidence in chronically undersupplied housing markets.
House prices increased in all capitals over October with Adelaide and Brisbane yet again the top performers of the major cities with prices in a revitalised Melbourne continuing to rise solidly.
Unit price growth also again remained positive over October with annual results in Brisbane, Adelaide and Perth continuing to clearly lead the capitals, and adding to extraordinary price increases in those cities over the past 2 years.
The remainder of 2025 is set to continue to produce prices growth for most capital city housing markets, fuelled by improved affordability and rising confidence generated by lower interest rates.
Prices growth in Brisbane, Adelaide and Perth is set to again lead capital city outcomes and likely exceed 10% annually for both houses and units.
Sydney will to continue to report solid to strong results, with the Melbourne market clearly reviving with 2025 prices growth likely to clearly exceed 2024 results for both houses and units.
Underlying drivers continue to support housing market activity generally, although the August RBA rate cut is now less likely to be followed by another in 2025 reflecting rising inflation and a resilient labour market.
The national economy remains robust with jobless rates still relatively low and participation rates high – and enhanced by recent interest rate cuts.
The continued strong performance of retail sales also indicates positive consumer activity and confidence.
Although high post-COVID migration levels have eased recently, numbers remain robust and will add to chronic housing undersupply supporting high rents and low vacancy rates generally in capital city rental markets.
Following a period of easing rental growth, the latest data is reporting still-low home rental vacancy rates overall with higher rents again likely to follow.
High rents and higher prices continue to provide clear incentives for first home buyers and investors chasing solid investment returns.
New government initiatives to support first home buyers will increase demand and act to place more upward pressure on prices.
Capital city housing markets generally recorded higher house and unit prices over 2003 and 2024, and have continued to mostly rise over October supported by the increased buyer and seller energy of the typically robust spring selling season now underway.
National home prices are set to record strong growth over 2025 likely exceeding the results of the previous two years and bolstered by lower interest rates, a continuing strong economy and chronic low levels of new home construction.
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