Nationally, the median dwelling value now sits at $872,538, marking a 6.1 per cent annual rise, but price pressures continue to weigh heavily on first-home buyers and upgraders alike.
All capital cities posted gains in October. Perth led the month with a 1.9 percent rise, followed closely by Brisbane (1.8 percent) and Darwin (1.6 percent). Sydney and Melbourne recorded more modest increases of 0.7 percent and 0.9 percent, respectively, reflecting relative affordability pressure in the largest markets. Regional housing markets also climbed, rising 1.0per cent in October after several slower months.
On a quarterly basis, the combined capitals rose 2.9 per cent while the combined regions gained 2.4 per cent. Despite solid demand, advertised stock remains about 18 per cent below the five-year average, contributing to persistent competition among buyers. Since February’s interest rate cut, capital city dwelling values have risen by nearly $54,000 at the median, effectively cancelling out the boost to borrowing capacity that the cut delivered. This has limited the benefit for many buyers working to stretch their deposits and serviceability limits.
Affordability constraints continue to shape market activity. The strongest value growth is currently in the lower and middle price brackets, where buyers are taking advantage of the expanded 5 per cent deposit guarantee scheme introduced in October. Values across the lower quartile of the capital cities rose 1.2 per cent last month, outperforming the upper quartile’s 0.7 per cent growth, and pointing to renewed momentum among first home buyers and investors in more affordable areas.
However, caution is building among some economists as consumer sentiment remains low and cost-of-living pressures linger. Several banks no longer expect further rate cuts in 2025, and any uptick in rates would slow borrowing power further. That leaves many households caught between rising prices, tighter budgets, and limited housing supply.
Buyers and sellers alike are likely to face a mixed environment over the summer selling season. Those looking to enter the market may find more choice as spring listings flow through, but concessions on price remain unlikely given competition and thin stock levels.
Discussing price targets with a trusted agent and setting a realistic budget aligned with current lending conditions will help buyers navigate the months ahead.
Outside the capitals, conditions are generally firmer in Queensland, Western Australia, and parts of regional South Australia, where annual gains outpace those in many city markets. Regional Western Australia leads with an 11.5 percent rise over the past six months, while markets such as Toowoomba, Tamworth, and Albany continue to attract buyers seeking relative value and lifestyle appeal. Even so, limited supply and affordability barriers remain real challenges for many would-be regional purchasers.
Monthly change in capital city home values | | MONTHLY | ANNUAL |
| Sydney | ↑ 0.7% | ↑ 4.0% |
| Melbourne | ↑ 0.9% | ↑ 3.3% |
| Brisbane | ↑ 1.8% | ↑ 10.8% |
| Adelaide | ↑ 1.4% | ↑ 6.7% |
| Perth | ↑ 1.9% | ↑ 9.4% |
| Hobart | ↓ 0.3% | ↑ 2.4% |
| Darwin | ↑ 1.6% | ↑ 15.4% |
| Canberra | ↑ 0.6% | ↑ 3.2% |
| National | ↑ 1.1% | ↑ 6.1% |