Key takeaways
Australian housing market growth is moderating due to economic uncertainties and affordability pressures
Mid-sized capitals (Brisbane, Adelaide, Perth) continue to outperform larger cities in terms of property price growth
Rents continue to rise faster than property values, improving yields
The Australian housing market demonstrated moderate growth through April 2025.
While February's rate cut initially boosted market sentiment, recent uncertainties—including the federal election and Trump's tariff announcements—have tempered confidence and slowed momentum.
Housing values rose 0.3% in April, slightly lower than March’s 0.4%, suggesting some loss in the momentum initially gained from the February rate cut.
Annual growth has slowed significantly to 3.2%, highlighting the market’s gradual transition to a steadier pace.
The rental market remains robust, with rents rising steadily, though annual rental growth has moderated considerably.
Australian Property Markets in April 2025
The performance across Australian capital cities remains mixed.
Brisbane, Adelaide, and Perth continue to hit record highs, indicating resilience in mid-sized markets, while Sydney, Melbourne, and Hobart remain below their peak values, suggesting these markets are still in recovery.
Change in house prices across the capital cities:
- Also read:Sydney property market forecast for 2025. Is it a good time to invest in Sydney?
- Also read:Everything you need to know about the state of Australia’s property markets in 20 charts – May 2025
- Also read:Brisbane Property Market Forecast [2025] – What’s Ahead & Where to Invest
- Also read:Melbourne property market forecast for 2025 | Is it a good time to invest in Melbourne?
- Also read:Latest property price forecasts for 2025 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Sydney property market forecast for 2025. Is it a good time to invest in Sydney?
- Also read:Everything you need to know about the state of Australia’s property markets in 20 charts – May 2025
- Also read:Brisbane Property Market Forecast [2025] – What’s Ahead & Where to Invest
- Also read:Melbourne property market forecast for 2025 | Is it a good time to invest in Melbourne?
| Capital City | April Change | vs. Peak Values |
|---|---|---|
| Sydney | +0.2% | -1.1% |
| Melbourne | +0.2% | -5.4% |
| Brisbane | +0.4% | Record High |
| Adelaide | +0.3% | Record High |
| Perth | +0.4% | Record High |
| Hobart | +0.9% | -11.1% |
| Darwin | +1.1% | -2.7% |
| Canberra | +0.4% | -6.4% |
Source: Cotality Australia
Note: Brisbane, Adelaide, and Perth are showing notable stability, whereas larger markets like Sydney and Melbourne are experiencing slower recoveries.
- Dwelling Value-to-Income Ratio: At historic highs
- Home Loan Serviceability: Record high, requiring around 10.6 years on average to save for a 20% deposit
- Median Rent Affordability: Rental households now dedicate approximately 33% of their pre-tax income to rent
Note: Affordability issues persistently limit the market's growth potential and pose significant hurdles for first-time buyers.
The rental market remains healthy overall, but growth has slowed significantly. Notably, Darwin and Hobart have experienced the strongest rental growth in the past year.
- Highest Annual Rental Growth: Darwin units (+7.3%), Hobart units (+7%) and houses (+5%)
- Slowing Rental Growth: National annual rental growth rate now at 3.6%, significantly down from 8.3% one year ago
Looking Ahead: Property Market Outlook
Looking ahead, the Australian housing market is likely to continue experiencing moderate, sustainable growth.
Government initiatives targeting first-time buyers will influence market dynamics, while ongoing undersupply issues will maintain upward price pressures.
- Moderate housing value growth is expected to continue through 2025.
- Affordability constraints and cautious lending will limit growth potential.
- First home buyers to benefit from new stimulus measures.
- Persistent undersupply expected to sustain upward price pressures.
Overall, the Australian property market remains resilient amid evolving economic and political conditions.
Buyers and investors should closely monitor developments, particularly around interest rates and housing policy announcements.
