Key takeaways
Capital city house prices rose for the 7th consecutive month, up 1.1% over the September quarter.
The national median house price now sits at $1,232,063, 7.1% higher than last year.
National median unit prices climbed 0.7% to $694,076, marking 8 straight months of growth and sitting 5.5% higher than a year ago.
Lower interest rates (cuts in Feb, May, and Aug) boosted affordability, lifted buyer/seller confidence, and amplified demand in undersupplied markets.
Momentum set to continue: 2025 likely to mirror strong growth seen in 2023–24, underpinned by rate cuts, a solid economy, and low new housing supply.
Sydney will continue its steady growth, while Melbourne’s revival looks set to outperform its 2024 results.
Tight rentals & rising rents will keep pushing first home buyers and investors into the market.
Lower interest rates continue to fuel capital city housing markets, with price growth for both houses and units accelerating again over September.
The national capital city median house price increased by 1.1% over the September quarter to $1,232,063 compared to the August quarter, according to the latest data from My Housing Market.
The September result was the seventh consecutive monthly rise in national prices, with annual house prices continuing to rise and now higher by 7.1% over the past year.
Most capitals reported house price increases over September with resurgent Darwin yet again the top performer higher by 3.6% followed also again by Brisbane up 2.1%, Sydney higher by 1.4%, Canberra and Adelaide up 1.2%, Perth higher by 0.8%, Melbourne up 0.3% with Hobart down again - falling by 0.5%.
Darwin, Brisbane and Perth have reported the highest house price increases over the past year - higher by 16.5%, 11.8% and 9.9% respectively.
Quarterly Median House Prices September 2025
| Median | Month | This Year | 1 Year | 2 Year | |
| Sydney | $1,736,099 | 1.4% | 5.3% | 6.4% | 12.4% |
| Melbourne | $1,098,561 | 0.3% | 5.2% | 4.3% | 3.6% |
| Brisbane | $1,100,120 | 2.1% | 9.2% | 11.8% | 30.1% |
| Adelaide | $1,038,610 | 1.2% | 8.0% | 7.3% | 25.6% |
| Perth | $1,035,842 | 0.8% | 6.1% | 9.9% | 39.7% |
| Hobart | $700,232 | -0.5% | 4.3% | 4.1% | 4.2% |
| Darwin | $716,397 | 3.6% | 17.5% | 16.5% | 11.5% |
| Canberra | $1,000,040 | 1.2% | 5.6% | 6.6% | 3.0% |
| National | $1,232,063 | 1.1% | 6.2% | 7.1% | 15.4% |
Apartment / Unit Market Update
National unit prices were also higher again over the September quarter and for the eighth consecutive month, rising by 0.7% to $694,076 to remain 5.5% higher than the September quarter 2024 result.
Brisbane was again the top monthly performer with unit prices rising over September by 2.3% followed by Adelaide higher by 2.1%, a strengthening Melbourne up 1.1%, Perth higher by 1.0%, Canberra up 0.6%, Sydney up 0.2% with Darwin higher by 0.1%.
Hobart unit prices fell by 0.2% over the month.
Quarterly Median Unit Prices September 2025
| Median | Month | This Year | 1 Year | 2 Year | |
| Sydney | $801,482 | 0.2% | 4.1% | 3.6% | 8.3% |
| Melbourne | $583,339 | 1.1% | 6.2% | 3.5% | 4.1% |
| Brisbane | $646,131 | 2.3% | 10.3% | 15.8% | 44.5% |
| Adelaide | $585,518 | 2.1% | 10.4% | 12.3% | 36.1% |
| Perth | $571,044 | 1.0% | 12.4% | 13.9% | 44.5% |
| Hobart | $525,460 | -0.2% | -5.2% | 2.6% | -0.6% |
| Darwin | $379,253 | 0.1% | 7.3% | 7.7% | 4.2% |
| Canberra | $507,084 | 0.6% | 1.7% | 2.0% | -0.9% |
| National | $694,076 | 0.7% | 5.6% | 5.5% | 12.1% |
Brisbane, Perth and Adelaide have recorded clearly the highest annual unit price growth over the year ending the September quarter 2025 up by 15.8%, 13.9%, and 12.3% respectively.
Comment
Capital city home prices have continued to generally increase over September with rising housing market activity over the past six months driven by lower interest rates and growing confidence.
RBA reductions of official interest rates in February, May and August have significantly enhanced housing affordability and boosted buyer and seller confidence in chronically undersupplied housing markets.
House prices increased in most capitals over September with Brisbane again the top performer of the major cities recording the highest growth for both houses and units, and followed closely by Adelaide.
Prices for houses and units in a reviving Melbourne continue to accelerate and are now up by 5.2% and 6.1% respectively over the first 9 months of 2025.
Unit price growth also again remained positive over September with annual results in Brisbane, Perth and Adelaide continuing to clearly lead the capitals, and adding to extraordinary 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 still-strong and resilient labour market.
The national economy remains robust with jobless rates still 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 strong and will add to chronic housing undersupply supporting generally high rents and low vacancy rates generally in capital city rental markets.
Following a period of easing, the latest data is reporting still-low 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 September supported by the increased buyer and seller energy of the typically robust spring selling season now underway.
National home prices are set to record sturdy growth again over 2025 similar at least to the results of the previous two years and supported by lower interest rates, a continuing strong economy and chronic low levels of new home construction.
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