National home price growth gathered pace in August, according to the PropTrack Home Price Index August 2025, as Reserve Bank rate cuts and government support measures reignited buyer activity.
National home prices rose 0.5% in August, marking the eighth straight month of growth. Prices are now 5.3% higher year-on-year, adding around $47,900 to the median home, and up 50.4% over five years.
Capital city markets also rose 0.5% in August and are up 4.9% year-on-year, with values at record highs. Darwin (+0.8%) and Sydney (+0.7%) led monthly growth, while Hobart (-0.5%) was the only capital to record a fall.
Regional prices rose 0.3% in August and are now 6.6% higher year-on-year, outpacing the capitals and extending their stronger five-year growth record (65.2% vs 46%).
Regional South Australia (+13.3%), Darwin (+10.4%), regional Queensland (+9.9%) and regional Western Australia (+9.9%) recorded the largest annual gains.
Prices in Melbourne rose 0.3% in August and now sit just 0.6% below their 2022 peak, almost fully recovering after years of underperformance, PropTrack data showed.
Eleanor Creagh (pictured), REA Group senior economist, said August’s 0.5% growth in national home prices “marks eight straight months of growth as the housing market gains momentum following the series of interest rate cuts this year which have boosted borrowing capacities, improved sentiment and drawn buyers back into the market.”
“As a result, the housing upswing, once narrowly led by a handful of cities, is broadening,” Creagh said.
She noted that demand has strengthened in the largest capitals.
“Demand has re-accelerated in Sydney and Melbourne, marking a turnaround from the slower conditions observed in late 2024,” Creagh said.
“Darwin has swung from inertia in 2024 to leading annual growth amongst the capitals. Melbourne is closing in on its 2022 peak, with relative affordability and strong population growth restoring its appeal.
“By contrast, Adelaide and Perth are still growing briskly, but at a slower pace compared to the same period last year.”
Looking ahead, Creagh said: “The combination of lower interest rates, increased borrowing capacities and improved sentiment is expected to continue to drive demand.
“Constrained new housing supply, strong population growth and the expansion of the Home Guarantee Scheme from October will also maintain upward pressure on prices.
“As we enter spring, the housing market appears poised for another leg higher, albeit strengthening in some capitals while normalising in others.”
For mortgage advisers, the broad-based price gains and improved sentiment signal increased demand for finance, particularly among first-home buyers and upgraders seeking to capitalise on greater borrowing power and government incentives.
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