National home prices rose 0.5% in September, marking the ninth consecutive month of gains and lifting values to a record high, according to the latest REA Group PropTrack Home Price Index.
Home values are now up 6.2% over the past year, adding around $54,100 to the median home, and have surged 50.6% in the past five years.
Capital city prices climbed 0.6% in September, while regional prices rose 0.4%, extending their outperformance over capitals across both the past year and the past five years.
Among the capitals, Hobart (+0.8%) and Sydney (+0.7%) led September’s gains, with Melbourne also returning to record highs after several years of underperformance, according to PropTrack.
All capitals are now at record highs, except Hobart (–5.4% below peak) and Canberra (–1.3%). Darwin (+11.4%), Brisbane (+10.2%), regional South Australia (+12.3%) and regional Queensland (+10.2%) recorded the strongest annual gains.
Eleanor Creagh (pictured), REA Group senior economist, said the housing market is being supported by stronger confidence, lower borrowing costs, and more competitive conditions.
“The housing market remains on a firm upward trajectory this spring selling season,” Creagh said. “National home prices rose 0.5% in September, extending the upswing to a ninth straight month and lifting values 6.2% higher than a year ago.
“The combination of increased borrowing capacities and lower borrowing costs, stronger buyer confidence and renewed competition is underpinning a broad uplift, while momentum is shifting. Price growth in Sydney and Melbourne is re-accelerating, Hobart is rebounding, and Darwin is leading annual gains amid surging investor activity.
“By contrast, Perth, Brisbane, and Adelaide are normalising after exceptional multi-year runs, with growth slowing, though prices continue to rise and values remain at record highs.”
The housing upswing also comes against the backdrop of monetary policy shifts. The Reserve Bank (RBA) yesterday held the cash rate at 3.6%, following earlier cuts in February, May, and August. The central bank pointed to global economic uncertainty along with stronger-than-expected domestic growth and inflation.
Affordability, a key ethical issue in 2025, remains a challenge. Creagh said this will likely keep growth slower than in past booms despite supportive conditions.
“Although national growth has accelerated in 2025, it remains below long-run average with stretched affordability leaving limited room for prices to surge at the 20-30% pace of previous booms,” she said.
“Looking ahead, this year’s series of interest rate cuts, improved sentiment, and the October expansion of the Home Guarantee Scheme will add support. With stock on market constrained and new supply challenged, demand-side stimulus will intensify competition. The housing market is poised for further gains throughout spring, though the pace will vary across cities as momentum shifts.”
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