Australian residence values skilled a notable acceleration in October, rising by 1.1 p.c—the very best month-to-month progress recorded since June 2023. This upward momentum, constructing steadily because the preliminary price discount in February, has elevated the annual progress price to six.1 p.c nationwide.
“Earlier than the February price minimize, housing situations have been dropping momentum, even recording flat to falling values by way of late 2024 and January 2025. The primary price minimize in February marked a transparent turning level, with residence values shifting by way of a constructive inflection throughout most areas and gathering steam since then,” mentioned Tim Lawless, Cotality’s analysis director.
Month-to-month positive factors have been broadly distributed, with all capital cities and regional areas registering a rise in values, starting from a 1.9% uplift in Perth to a 0.3% rise in Hobart.
Throughout the mixed capital cities, October’s 1.1% enhance translated to a median dwelling worth rise of simply over $10,000 for the month. Since February, values within the capitals have climbed 5.9%, equating to roughly $53,700 in further median worth.
A number of elements are underpinning the sturdy housing market, however the principal driver behind the latest acceleration is the persistent imbalance between restricted provide and heightened demand. Nationally, Cotality’s rolling quarterly estimate signifies residence gross sales are trending 3.1% above the earlier five-year common, whereas the quantity of marketed properties over the 4 weeks ending 26 October remained 18% under the long-term common.
Persistently low marketed provide, coupled with sustained above-average demand, has continued to favour sellers all through spring. Whereas public sale clearance charges have softened marginally, they continue to be elevated—persistently sitting within the excessive 60 to low 70 per cent vary because the season started, nicely above the last decade common.
This acceleration in progress charges additionally aligns with the introduction of the expanded 5% deposit assure scheme, which commenced on 1 October and has doubtless contributed to elevated housing demand, significantly throughout the decrease and center segments of the market.
Notably, the strongest progress continues to be seen throughout the center and decrease quartiles of the market. Throughout the mixed capitals, dwelling values elevated by 1.4% within the center market and 1.2% within the decrease quartile, whereas values within the higher quartile recorded a extra modest 0.7% rise over the month.
“The higher quartile of the market is exhibiting the bottom price of progress throughout nearly each capital metropolis. Stronger housing demand on the lower cost factors is probably going a end result of serviceability constraint seroding buying energy, persistently larger than common ranges of investor exercise, and what’s doubtless a pickup in first residence consumers making the most of the expanded deposit assure,” mentioned Lawless.
Regional markets equally demonstrated sturdy momentum in October, with a 1.0% month-to-month achieve representing the strongest uplift throughout mixed regional areas since March 2022. Regional Western Australia led the advances, posting a 1.8% rise in values, adopted by Regional Queensland with a 1.1% enhance and Regional New South Wales up 1.0%.
