Australia’s housing market extended its strong run in October, with national home prices rising 0.6% to a new record high, according to the latest PropTrack Home Price Index.
The result marks the 10th consecutive month of growth, lifting values 7.5% higher than a year ago — the fastest annual pace since May 2024.
Nationally, home values have increased by about $65,200 over the past year, bringing the median home price to $858,000, up 51% over the past five years.
“The housing upswing has gained momentum and home prices have hit a new record high,” said REA Group senior economist Eleanor Creagh (pictured).
Capital-city prices rose 0.6% in October and are 7.4% higher year-on-year, with most capitals now sitting at record levels. Adelaide (+1.2%) and Brisbane (+0.9%) led the monthly gains, followed by Sydney, Perth and Hobart (each +0.6%) and Melbourne (+0.5%).
All capitals are now at record highs except Hobart (-3.9% below peak) and Canberra (–1.0% below peak).
Over the past year, the biggest movers have been Darwin (+12.8%), Brisbane (+12.6%), and Perth (+11.8%), while regional South Australia (+12.0%) and Queensland (+11.2%) also performed strongly.
Creagh said increased borrowing capacity, lower mortgage rates, and improved sentiment “are fuelling renewed competition, and national prices hit a new peak in October.”
Regional prices climbed 0.6% in October and are now 7.9% higher over the year, continuing to outpace the capitals across both one-year and five-year periods (64.2% vs 47.0%). The strongest regional results were seen in Queensland and South Australia, where relative affordability and lifestyle appeal remain key drivers.
However, regional outperformance is narrowing as capital-city markets take the lead in the current upswing.
“Even with interest-rate cuts restoring borrowing power and sentiment lifting, the capacity of households to bid prices higher is capped,” Creagh said.
House and unit prices are now rising at a similar pace nationwide. House prices lifted 0.6% in October, while unit prices rose 0.7%. Over the year, house values are up 7.6% and units 7.2%, marking one of the most balanced periods of growth between the two sectors in recent years.
Queensland dominates annual gains as Sydney regains momentum
The past year’s strongest growth has been concentrated in Queensland, supported by affordability, lifestyle factors and investor demand. However, momentum has recently shifted toward Sydney, where several regions recorded the fastest quarterly growth in the three months to October 2025.
“With interest rates moving lower this year, momentum in the housing market has strengthened,” Creagh said. “The current upswing is a synchronised expansion, underpinned by lower rates and constrained supply, with a broad-based lift in prices across the country.”
While stretched affordability remains a “brake on the pace of growth,” she noted that the market is well short of the 20–30% surges seen in earlier booms.
Looking ahead, tight supply, low vacancies, and strong borrower competition are likely to keep conditions tilted toward sellers through summer.
For brokers, the renewed housing upswing is translating into stronger pipelines and faster turnaround times as buyer confidence returns. Three rate cuts since February and the 5% deposit scheme have widened borrower capacity and brought a surge of first-home buyers back into the market.
Investor lending – now around 40% of new mortgage originations – has also jumped, creating what some analysts describe as a “two-speed market,” where investors and first-home buyers compete for limited stock.
With listings still tight and demand intensifying, pre-approval requests are climbing and borrower urgency remains high. For mortgage professionals, that means opportunity – but also the need to balance rising optimism with careful credit assessment as competition heats up heading into summer.
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