Price movements
Australian property prices continue to demonstrate resilience in March 2025, with house prices recording a 0.3 per cent monthly increase, bringing the national mean to $912,551. Unit values rose similarly by 0.3 per cent to reach $681,635. This steady growth reflects ongoing supply constraints balancing against affordability challenges, with both market segments remaining well above their previous peak values.
The recent interest rate cut by the Reserve Bank of Australia has begun to influence market dynamics, supporting continued price growth. This monetary policy shift, coupled with the federal government’s 2025 budget housing measures announced in late March, could further shape market conditions. The budget’s expansion of the Help to Buy scheme, with increased income and property price caps, along with incentives for trade apprenticeships to address construction workforce shortages, aims to improve both affordability and supply constraints. However, concerns remain about measures potentially discouraging foreign investment in housing development.
Despite these policy interventions, the fundamental imbalance between housing supply and strong population growth continues to drive price appreciation across most markets in the first quarter of 2025.
Australian property prices continue to demonstrate resilience in March 2025, with house prices recording a 0.3 per cent monthly increase, bringing the national mean to $912,551. Unit values rose similarly by 0.3 per cent to reach $681,635. This steady growth reflects ongoing supply constraints balancing against affordability challenges, with both market segments remaining well above their previous peak values.
The recent interest rate cut by the Reserve Bank of Australia has begun to influence market dynamics, supporting continued price growth. This monetary policy shift, coupled with the federal government’s 2025 budget housing measures announced in late March, could further shape market conditions. The budget’s expansion of the Help to Buy scheme, with increased income and property price caps, along with incentives for trade apprenticeships to address construction workforce shortages, aims to improve both affordability and supply constraints. However, concerns remain about measures potentially discouraging foreign investment in housing development.
Despite these policy interventions, the fundamental imbalance between housing supply and strong population growth continues to drive price appreciation across most markets in the first quarter of 2025.
The capital city housing market continues to display varied performance across Australia’s major cities, with Perth maintaining its position as the standout performer. With a mean price of $906,528, Perth recorded a 0.7 per cent monthly gain and an impressive 14.2 per cent year-on-year increase, reflecting the ongoing economic strength in Western Australia’s mining sector.
Adelaide remains in strong territory, with its mean house price of $899,323 representing a 0.5 per cent monthly increase and solid 8.8 per cent annual growth. Brisbane has firmly established itself with a mean above $1 million at $1,020,576, reflecting a 0.5 per cent monthly gain and 8.6 per cent annual growth.
The Gold Coast continues to command premium values at $1,222,358, rising 0.2 per cent for the month, while Sydney maintains its position as Australia’s most expensive market at $1,603,641 with a more modest annual growth of 3.5 per cent. Melbourne shows the least momentum among major capitals, recording flat growth for the month and just 0.6 per cent annually despite its $1,018,583 mean.
The unit market has performed variably across major cities in March, with Perth continuing to lead year-on-year growth metrics at 15.4 per cent, showing a strong 0.9 per cent gain for the month to reach $594,485. Adelaide follows with 11.3 per cent annual growth and a 0.7 per cent monthly increase, bringing its mean to $622,267.
Brisbane units recorded a robust 10.9 per cent annual increase with prices rising 0.5 per cent in March to $698,481. The Gold Coast maintains its premium position with a mean of $891,791, while Sydney remains the most expensive unit market at $896,243, though showing no movement for the month and modest 2.8 per cent annual growth.
Darwin recorded a solid 0.5 per cent monthly gain despite more moderate annual growth of 3.7 per cent. Canberra and Melbourne continue to show the most subdued performance among capital cities, with annual growth of just 1.1 per cent and 0.8 per cent respectively, highlighting the varied recovery patterns across Australia’s unit markets.
The unit market has performed variably across major cities in March, with Perth continuing to lead year-on-year growth metrics at 15.4 per cent, showing a strong 0.9 per cent gain for the month to reach $594,485. Adelaide follows with 11.3 per cent annual growth and a 0.7 per cent monthly increase, bringing its mean to $622,267.
Brisbane units recorded a robust 10.9 per cent annual increase with prices rising 0.5 per cent in March to $698,481. The Gold Coast maintains its premium position with a mean of $891,791, while Sydney remains the most expensive unit market at $896,243, though showing no movement for the month and modest 2.8 per cent annual growth.
Darwin recorded a solid 0.5 per cent monthly gain despite more moderate annual growth of 3.7 per cent. Canberra and Melbourne continue to show the most subdued performance among capital cities, with annual growth of just 1.1 per cent and 0.8 per cent respectively, highlighting the varied recovery patterns across Australia’s unit markets.
Regional housing markets continue to show significant variation in performance, with resource-rich states maintaining their leadership positions. Regional Western Australia leads with 12.9 per cent annual growth and a mean price of $531,364, recording a 0.8 per cent monthly increase. Regional South Australia follows closely with 11.0 per cent annual growth and also posted a 0.8 per cent monthly gain, bringing its mean to $461,023.
Queensland’s regional markets remain strong with 9.6 per cent annual growth and a 0.6 per cent monthly increase, bringing the mean to $726,117. This represents the second highest mean value among regional markets, reflecting the ongoing popularity of Queensland’s coastal lifestyle locations.
Regional New South Wales maintains the highest mean value at $748,670 but shows more modest annual growth of 3.2 per cent with a 0.3 per cent monthly increase. Victoria’s regional market recorded the same monthly growth but remains subdued on an annual basis at just 1.0 per cent, while the Northern Territory showed slightly stronger monthly movement at 0.5 per cent but minimal annual growth of 1.6 per cent.
The regional unit market continues to mirror trends seen in the regional housing sector, with Western Australia and South Australia leading annual growth at 13.4 per cent and 12.6 per cent respectively. Both regions recorded a 0.9 per cent monthly increase in March, bringing their mean unit values to $406,597 and $294,094.
Regional Queensland maintains strong market conditions with 9.0 per cent year-on-year growth and a 0.6 per cent monthly increase, bringing its mean to $621,719. Regional New South Wales recorded more modest growth at 0.2 per cent for the month and 2.7 per cent annually, with a mean of $620,537.
Regional Victoria and Northern Territory showed slight monthly improvements of 0.3 per cent each, though annual growth remains subdued at 1.7 per cent and 1.4 per cent respectively. Overall, regional Australia’s unit market continues to outperform the national mean, with annual growth of 6.3 per cent exceeding the broader Australian figure of 4.9 per cent.
