In Could, Australian dwelling values skilled an extra improve of 0.5%, elevating the nationwide index by 1.7% over the preliminary 5 months of the 12 months. This progress was widespread, with every capital metropolis recording a minimal rise of 0.4% all through the month.
“The continued momentum we’re seeing throughout virtually all markets is little doubt being fuelled by charge cuts – each people who have already occurred, but additionally potential cuts within the coming months,” mentioned Tim Lawless.
The rise in values follows a quick and modest decline of merely 0.4% over the three months concluding in January 2025, with the February charge lower taking part in a pivotal function in bolstering the upward pattern in housing values.
“With rates of interest falling once more in Could, we’re more likely to see an extra optimistic affect flowing by way of to housing values in June and thru the remainder of the 12 months.”
Though there may be some momentum evident within the month-to-month pattern, the annual progress charge of the nationwide HVI decelerated to three.3%, marking probably the most gradual twelve-month change for the reason that interval concluding in August 2023.
“This slower annual tempo of progress displays the easing in capital positive factors by way of the second half of final 12 months, culminating within the modest fall in values over the three months to January 2025.”
Melbourne (-1.2%) and Canberra (-0.7%) are the one capital cities to have skilled an annual decline in dwelling values, underscoring the market’s resilience amidst a backdrop of elevated rates of interest and value of residing challenges.
Concurrently, the broad-based improve in residence values has led to a notable convergence in capital metropolis tendencies. The disparity between the very best and lowest annual change in dwelling values, at 9.8 proportion factors, is the narrowest noticed since March 2021. This convergence is attributed to a deceleration in worth progress throughout mid-sized capitals, whereas beforehand subdued markets corresponding to Melbourne and the ACT are returning to progress, thereby decreasing the speed of annual decline.
The annual progress vary reached its zenith in August final 12 months, with a 26.1 proportion level distinction between the very best (Perth at +24.5%) and lowest (Hobart at -1.6%) progress charges, highlighting probably the most diversified progress circumstances since 2007. The rise in housing values continues to be pushed by lower cost tiers throughout most cities; nevertheless, there may be additionally convergence on this phase as higher-priced market segments start to achieve momentum following charge cuts.
Within the state capitals, Sydney and Canberra are the one cities the place the higher quartile displays a stronger quarterly progress pattern than the decrease quartile, whereas in most different capitals, the higher quartile is closing the expansion charge hole with the decrease quartile and the broad center of the market. Regional markets are additionally displaying a optimistic trajectory, with all ‘remainder of state’ markets reporting an increase in values year-to-date.
Probably the most important positive factors have been noticed in Regional South Australia, the place values have elevated by 5.8% over the primary 5 months of 2025. Conversely, regional Tasmanian values have remained comparatively secure over the identical interval, with a modest improve of simply 0.1%.
