Price movements
Australia’s property market demonstrated its underlying strength in July 2025, with national house prices reaching $945,425 and unit prices achieving $699,722. The market’s resilience is evident in the long-term trajectory, with both sectors maintaining solid annual growth of 6.4 per cent for houses and 5.2 per cent for units despite the Reserve Bank’s surprise rate hold in July.
The data reveals the market’s capacity to withstand monetary policy shifts, with prices now sitting near historic highs across all markets following the dramatic recovery from pandemic lows. This trajectory reflects the fundamental supply- demand imbalance that continues to underpin price appreciation across both housing segments, positioning the market well for renewed acceleration once the anticipated August rate cuts commence.
July’s metropolitan housing data reveals the immediate impact of the Reserve Bank’s rate hold decision, with markets showing varied responses to the pause in monetary easing. Perth maintained its leadership position with a mean price of $949,755, recording 0.6 per cent monthly growth and exceptional 11.3 per cent annual appreciation. Brisbane and Sydney both managed modest 0.2 per cent monthly gains, reaching $1,066,206 and $1,654,146 respectively, while their annual growth rates of 8.5 per cent and 4.7 per cent demonstrate sustained momentum.
The standout performance across smaller capitals reinforces the trend towards more affordable markets, with Adelaide, Darwin and Gold Coast all maintaining solid annual growth above six per cent. Melbourne and Canberra experienced slight monthly contractions of -0.1 per cent and -0.2 per cent respectively, reflecting their sensitivity to interest rate expectations. However, the modest nature of these declines suggests markets are positioning for the widely anticipated August rate cut cycle.
Major city unit markets showcased remarkable resilience during July’s rate hold period, with several markets posting solid gains that contrast sharply with housing sector moderation. Perth units maintained their exceptional momentum with 1.0 per cent monthly growth, reaching $626,820 and delivering outstanding 13.3 per cent annual appreciation. Brisbane and Adelaide units both recorded healthy 0.6 per cent and 0.3 per cent monthly gains respectively, demonstrating the sector’s appeal amid affordability constraints.
Sydney units provided the standout performance among the larger markets, accelerating to 0.4 per cent monthly growth and reaching $913,320, representing the only major market segment to improve during the rate hold period. This unit market strength reflects the structural shift towards higher-density living as housing affordability pressures intensify. The combined major cities unit performance of 0.3 per cent monthly growth, alongside 4.9 per cent annual appreciation, positions this sector as increasingly attractive for both investors and owner-occupiers facing price pressures in the detached housing market.
Regional housing markets demonstrate exceptional resilience, with annual growth rates consistently outpacing metropolitan areas despite supply constraints. Regional Western Australia leads with 12.2 per cent annual appreciation to $557,411, followed by regional South Australia at 10.5 per cent growth reaching $478,982. Regional Queensland maintains solid 9.7 per cent annual growth, with mean prices now at $763,135.
The pattern of modest monthly contractions across several regional markets, including regional Victoria (-0.6 per cent) and regional Northern Territory (-0.7 per cent), reflects the temporary pause following the rate hold decision. However, the strong annual growth rates across all regions demonstrate the underlying momentum that has characterised these markets throughout 2025, positioning them well for renewed acceleration as rate cuts commence.
Regional unit markets continue to outperform their metropolitan counterparts, with strong growth evident across most states despite the July rate hold. Regional Western Australia leads with annual appreciation of 12.2 per cent, reaching $425,003, while regional South Australia follows closely with 11.1 per cent growth to $306,485. Regional Queensland maintains solid momentum with $650,134 mean prices and 8.5 per cent annual growth.
The resilience of regional unit markets reflects both affordability advantages and supply constraints that have intensified throughout 2025. Monthly movements remained modest but positive across leading markets, with regional Western Australia, regional South Australia and regional Queensland all recording 0.2 - 0.4 per cent gains. The combined regional performance of 6.6 per cent annual growth significantly exceeds the national average, highlighting the structural advantages these markets maintain.
