Australia’s housing market reached a new milestone in April, with the national median home price climbing 0.2% to a record $805,000.
According to REA Group data, this marks another consecutive monthly gain as housing demand remains resilient across both capital cities and regional areas.
Regional markets continued to outperform, recording combined price growth of 0.3% for the month. Capital cities followed with a 0.16% increase, also reaching a new peak.
On an annual basis, regional areas posted a 4.61% increase, outpacing the 3.35% rise seen in capital cities.
Adelaide stood out as April’s strongest capital city performer, with home values up 0.3% for the month. Melbourne (+0.25%) and Canberra (+0.20%) rounded out the top three.
Over the past 12 months, Adelaide has also taken the national lead in annual growth, surging 10.77% and surpassing Perth’s 9.3%.
Among regional markets, Queensland (+0.49%) and South Australia (+0.48%) recorded the strongest growth in April, underscoring continued buyer demand outside of major urban centres.
Detached houses saw stronger growth than units over the month, rising 0.24% compared to zero growth for units. However, over the year, units edged ahead with a 3.88% annual gain versus 3.67% for houses.
This trend was more pronounced in regional areas, where unit prices surged 5.34%, outpacing house growth of 4.49%.
“While national home prices rose in April, the rate of growth has slowed compared to the first three months of the year,” said Anne Flaherty (pictured), REA Group senior economist.
“Should interest rates fall in May, we may see the rate of growth pick up again as borrowing capacities increase and mortgage repayments decline.”
And with new inflation data from the Australian Bureau of Statistics showing that pressures have remained largely stable—with the consumer price index rising 2.4% annually to March, unchanged from the December quarter—expectations are growing that interest rate relief may be on the horizon as early as May.
“The rate of price growth is moderating in outperforming cities such as Perth, Adelaide and Brisbane, while underperformers such as Melbourne, Canberra, and Sydney have started to pick up,” Flaherty said. “This is lessening the divergence in home price growth seen across the country over the past year.”
“With housing affordability a key issue at the upcoming federal election, both Labor and the Coalition have announced policy incentives for first-home buyers,” Flaherty said. “As a result, many of these buyers may be biding their time to get into the market after the election and the launch of these policies.”
The Coalition has proposed a First Home Buyer Mortgage Deductibility Scheme, offering tax deductions on interest for up to $650,000 of a mortgage on new-build homes—potentially saving eligible buyers up to $12,000 a year. It also plans to expand the Home Guarantee Scheme and invest in infrastructure to boost housing supply.
Labor, meanwhile, pledges to allow all first-home buyers to purchase with just a 5% deposit, removing income and place caps, and eliminating the need for lenders mortgage insurance. It also promises to invest $10 billion to build 100,000 homes for first-home buyers under its broader $43 billion housing plan.
“Whichever party is elected, the combination of increased first-home buyer incentives, lower interest rates, and supply-side challenges are expected to contribute to even higher property prices in 2025,” Flaherty said.
