Key takeaways
National home prices continued to rise in April, fuelled particularly by lower interest rates, which improved affordability and supported buyer confidence.
The April increase was the equal highest monthly increase recorded since April 2024 and followed a similarly strong 0.8% result reported over the previous month.
National house prices have now risen by 4.3% over the past year.
2025 will likely continue to produce positive results for housing markets, particularly in the major capitals; fuelled by improved affordability and rising confidence generated by lower interest rates.
National home prices continued to rise in April, fuelled particularly by lower interest rates, which improved affordability and supported buyer confidence.
According to the latest data from My Housing Market, the national capital city median house price increased by 0.8% to $1,177,737 in the April quarter compared to the March quarter.
The April increase was the equal highest monthly increase recorded since April 2024 and followed a similarly strong 0.8% result reported over the previous month.
National house prices have now risen by 4.3% over the past year.
All capitals except Canberra reported increases in house prices over April, with Adelaide the top performer up by 1.4% followed by Hobart higher by 1.05, Melbourne and Brisbane each up by 0.9%; Sydney higher by 0.8%, Darwin up 0.6%, Perth higher by 0.1% but Canberra lower by 0.1%.
House prices have increased over the past year in Perth, Adelaide, Brisbane, Darwin, Sydney and Hobart - higher by 12.5%, 10.7%, 8.8%, 3.5%, 3.5% and 0.5% respectively.
Canberra house prices however fell by 0.6% over the year with Melbourne down 1.0%.
Apartment / unit prices
National unit prices were also higher again over the April quarter compared to the previous March quarter, rising sharply by 1.0% to $673,830 and remained 3.8% higher than the April quarter 2024 result.
Hobart was the top performer over April with unit prices rising by 3.1% followed by Adelaide increasing 3.0%, Darwin higher by 2.5%, Melbourne up 1.7%, Brisbane higher by 1.3%, Sydney up 0.7% and Perth higher by 0.3%. Canberra unit prices however fell 1.1% over the month.
Brisbane, Adelaide, Perth and Hobart have clearly recorded the highest annual unit price growth over the year ending the April quarter 2025, up by 18.8%, 16.4%, 16.3% and 15.5% respectively.
Darwin annual unit prices are now higher by 6.9% with Sydney up 1.9%. The Melbourne annual unit price however is down 0.9% with Canberra lower by 3.5%.
Comment
Capital city housing markets have generally performed positively again over April following strong results over March reflecting the end of the moderating seasonal effects of the typically quieter market conditions of December through to February.
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The February decision to cut official interest rates – the first reduction in over 4 years, continues to support rising housing market activity by increasing buyer confidence and improving housing affordability.
House price growth over April was particularly strong in Adelaide with more robust results from Melbourne that continues to exhibit signs of revival following recent subdued growth.
The Perth market bounced back marginally over April following the sharp decline reported over the previous month that was the first monthly decline for that city since 2022.
Unit price growth has also remained generally positive over recent months with Brisbane continuing to produce strong results and remaining a standout leader for annual growth.
Melbourne again reported strong results over the month, with unit prices in that city now rising over three consecutive quarters for the first time since May 2024
2025 will likely continue to produce positive results for housing markets, particularly in the major capitals; fuelled by improved affordability and rising confidence generated by lower interest rates.
Prices growth in the recent boom-time markets of Brisbane, Adelaide and Perth however is likely to be lower than the heady results recorded through 2024.
Sydney is set to continue to report solid results with the Melbourne market now providing early signs of a better year for prices growth, particularly for units.
Underlying drivers will continue to support housing market activity generally, with the possibility of further RBA rate cuts that will support housing market activity and generate higher home prices.
Despite recent mixed labour market results, the national economy remains strong with continuing low jobless rates and solid annual jobs growth driving wage increases that will also be enhanced by interest rate cuts.
Although high post-COVID migration levels have eased recently, numbers remain strong and continue to add to chronic housing undersupply supporting high rents and low vacancy rates generally in capital city rental markets.
Following a period of easing over recent months, the latest data is reporting a general tightening of vacancy rates and rising tenant demand, 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.
Capital city housing markets generally recorded higher house and unit prices over 2003 and 2024, and have continued to rebound over April following a typically quieter start to 2025 reflecting early year seasonal influences.
National home prices are set to record positive growth again over 2025 supported by lower interest rates, a continuing strong economy and chronic low levels of new home construction.
