Australia’s housing market reached a new record in June, with national prices climbing 0.4% month-on-month and 4.6% higher than a year ago, according to REA Group’s latest PropTrack Home Price Index.
The strength in June continues a broader upward trend in housing values. Earlier ABS data showed residential land and dwelling values rose 1.2% in the March quarter, contributing $125.3 billion to a $137.1 billion rise in household wealth.
The growth was led by capital city markets, where home prices rose 0.4% in June. Adelaide led the pack with a 0.6% monthly increase, continuing its standout performance to remain the strongest capital over the past year, up 9.8%.
“National home prices rose 0.4% in June, pushing values to a record high,” said Eleanor Creagh (pictured), REA group senior economist. “As interest rates have fallen, price momentum has strengthened and extended across the country, with all markets recording gains in June.”
Sydney and Hobart each recorded 0.5% home price growth, while Brisbane and Perth posted strong annual gains of 8.3% and 7.8%, respectively. Notably, Brisbane’s median house price has now surpassed $1 million.
Melbourne continued its recovery with a 0.3% lift in June, although prices remain 1.1% below their peak.
Home prices in regional areas also climbed 0.3% over the month and 6% year-on-year – outpacing the combined capitals’ 4.1% annual gain. Over the past five years, regional home values have risen by just over 65%.
“Capital city markets are leading the upturn, with price growth in all cities in June,” Creagh said. “Market momentum is building amid renewed buyer confidence and improved sentiment, buoyed by falling interest rates and expectations of another rate cut in July.”
Further momentum is expected in the second half of the year as rate cuts continue.
“Further interest rate cuts expected later this year will ease borrowing costs, adding to the momentum in housing demand and reinforcing recent price growth,” Creagh said.
She added that population growth and tight supply were also contributing to upward pressure, particularly in more affordable segments.
“With interest rates moving lower, these factors are likely to sustain price growth over the second half of 2025,” Creagh said. “Despite these tailwinds, the upturn remains gradual and stretched affordability will see a more measured upswing than in previous easing cycles.”
