Home prices hit record high in March | Latest Proptrack Report

Key takeaways

National home prices rose 0.27% in March, pushing values to a record high. Prices are now 3.91% higher than a year ago and up 48% over the past five years.

Capital city markets led the monthly gains, with prices rising 0.31%, while regional markets saw a 0.18% increase. Both markets hit new peaks in March.

Canberra (+0.54%) and Sydney (+0.47%) led price growth this month, while Brisbane (+0.07%), Adelaide (+0.18%), and Perth (+0.15%) saw more modest increases. Despite this, these three markets remain the top performers over the past year, with values up 9.39%, 11.32%, and 11.53%, respectively.

The strongest turnaround in quarterly price growth was recorded in Melbourne, Canberra and Sydney. These markets saw a notable uplift in momentum in early 2025, following slower conditions at the end of 2024.

In contrast, growth has decelerated in Adelaide, Brisbane and Perth over the same period.

While capital cities are now leading the price rebound, annual growth in regional areas (+4.59%) continues to slightly outpace capital city growth (+3.64%). Poor affordability and a surge in choice throughout spring tempered price growth in the capitals in 2024, but February’s rate cut reignited buyer demand and price growth.

Home prices across the country climbed in March, following a clear shift in market momentum triggered by the Reserve Bank’s February rate cut according to the latest PropTrack Home Price Index.

February’s rate cut boosted borrowing capacities and buyer confidence, helping to reignite demand and reverse the small price declines seen in the months prior.

Ms Eleanor Creagh, Senior Economist at PropTrack commented:

“Home prices across the country climbed in March, following a clear shift in market momentum triggered by the Reserve Bank’s February rate cut.

February’s rate cut boosted borrowing capacities and buyer confidence, helping to reignite demand and reverse the small price declines seen in the months prior.

National home prices continued their upward trend in March, building on February’s rebound.

Market sentiment has improved and buyers who had delayed purchasing decisions due to the sustained higher interest rate environment are likely re-entering the market."

Source: PropTrack Home Price Index. March 2025

Ms Eleanor Creagh, further explained:

"Beyond interest rates, structural factors are continuing to support price growth.

Population growth remains strong – though it is beginning to moderate – and Australia continues to face a significant shortage in new home completions.

However, stretched affordability remains a major challenge and will only improve gradually, given the modest and measured rate reductions expected ahead.

We expect prices to keep lifting over the coming months, but the rate of growth is likely to be more modest compared to recent years.

With affordability still a major constraint, the impact of further rate cuts will be somewhat tempered.”

About Brett Warren Brett Warren is National Director of Metropole Properties and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their wealth through strategic property advice.