Australia’s housing market has powered into the final quarter of 2025 with stronger-than-expected momentum, delivering its first double-digit annual price rise since the pandemic boom of 2021–22, according to Ray White Chief Economist Nerida Conisbee (pictured).
Nationally, the median house price increased 1.1% in October to $940,000, pushing annual growth to 10.6%, while unit prices rose 1.4% to $710,000, lifting annual growth to 9.2%.
“In our September report, we noted that double-digit annual growth was likely to be confirmed by the end of the year. That milestone has come sooner than anticipated,” Conisbee said. “This underscores how resilient demand has remained through spring.”
The housing recovery remains broad-based, with Perth (+14.8%), Brisbane (+12.5%) and Adelaide (+10.8%) leading the capital-city markets. Sydney (+8.6%) and Melbourne (+6.5%) also maintained steady, consistent gains.
Regionally, the strongest growth was recorded in the resource-focused states, with Regional Western Australia (+16.4%) and Regional Queensland (+14.5%) emerging as standout performers.
Units again outpaced houses in October, reflecting affordability constraints, the impact of first home buyer incentives introduced at the start of the month, and an ongoing shortage of stock.
The sharpest monthly unit gains were seen in Perth (+1.6%), Adelaide (+1.5%), and Brisbane (+1.4%), while lifestyle markets such as the Gold Coast and Sunshine Coast both lifted 1.1%. Melbourne’s unit market also rose 1.6%, suggesting renewed buyer activity at lower price points. Sydney and Canberra were mostly steady following earlier gains.
House prices have now risen every month since February, while unit prices have increased each month since March— a sign of sustained confidence despite higher borrowing costs and modest supply increases.
“The pace of growth through October indicates that spring demand has not been dampened by higher supply,” Conisbee said, adding that new listings remain insufficient to meet buyer interest.
The report was released ahead of the Reserve Bank’s Melbourne Cup Day meeting, where the cash rate is widely expected to remain on hold at 3.6%. While September-quarter inflation data came in slightly higher than expected, RBA continues to balance that against a gradual softening in labour market conditions, with unemployment around 4.5%.
With house prices up 10.6% year-on-year and units up 9.2%, Conisbee said 2025 is on track to close with high single- to low double-digit annual growth nationally, stronger than forecast even a month earlier.
“Smaller capitals and regional areas are expected to remain the key outperformers into early 2026,” the Ray White economist said, “supported by population growth, tight supply and comparative affordability.”
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