Price movements
Australian property prices continued their remarkable acceleration in May 2025, with house prices rising 0.7 per cent to reach $926,806, delivering annual growth of 5.2 per cent. Unit values advanced 0.6 per cent to $687,144, achieving 4.5 per cent year-on-year appreciation.
The momentum that began with January’s recovery has intensified significantly following the Reserve Bank’s interest rate cuts, creating conditions reminiscent of 2021 and far exceeding early-year predictions. Perth continues its extraordinary trajectory toward the million-dollar threshold, while Sydney’s acceleration positions it for a potential two-million-dollar median by late 2026. Adding complexity to market dynamics, the Labor government’s proposed superannuation tax on unrealised gains over $3 million may prompt some SMSF property holders to reassess their portfolios, though immediate market impacts remain limited.
Australian property prices continued their remarkable acceleration in May 2025, with house prices rising 0.7 per cent to reach $926,806, delivering annual growth of 5.2 per cent. Unit values advanced 0.6 per cent to $687,144, achieving 4.5 per cent year-on-year appreciation.
The momentum that began with January’s recovery has intensified significantly following the Reserve Bank’s interest rate cuts, creating conditions reminiscent of 2021 and far exceeding early-year predictions. Perth continues its extraordinary trajectory toward the million-dollar threshold, while Sydney’s acceleration positions it for a potential two-million-dollar median by late 2026. Adding complexity to market dynamics, the Labor government’s proposed superannuation tax on unrealised gains over $3 million may prompt some SMSF property holders to reassess their portfolios, though immediate market impacts remain limited.
The capital city housing market continues displaying varied performance, with Perth maintaining its position as the standout performer. Perth recorded a robust 1.2 per cent monthly gain, reaching $922,250 and delivering exceptional 10.8 per cent annual growth.
Brisbane established itself firmly above the million-dollar mark at $1,038,406, posting 0.7 per cent monthly growth and solid 7.2 per cent annual appreciation. Adelaide sustained strong momentum with 0.6 per cent monthly growth, reaching $912,728 and achieving 7.1 per cent annual growth. Sydney demonstrated renewed strength with a substantial 1.0 per cent monthly increase to $1,627,858, though annual growth remained modest at 3.3 per cent. Melbourne recorded 0.6 per cent monthly growth to $1,031,964, but annual growth lagged at just 1.4 per cent. The addition of Sunshine Coast to our reporting shows solid performance at $1,182,794 with 0.6 per cent monthly growth and 4.4 per cent annual appreciation.
The unit market across major cities demonstrated consistent momentum, with Perth continuing to lead year-on-year growth at 13.1 per cent despite its $606,044 median remaining the most affordable among major markets. Brisbane units recorded strong performance with 0.7 per cent monthly growth, reaching $711,915 and achieving 9.2 per cent annual appreciation. Adelaide units posted 0.6 per cent monthly growth to $629,636, delivering solid 9.0 per cent annual growth. Sydney units advanced 0.7 per cent monthly to $900,289, moving closer to the million-dollar threshold with 2.5 per cent annual growth. The Gold Coast maintained its premium position at $903,153 with 0.5 per cent monthly growth and 5.6 per cent annual appreciation. Melbourne continued showing the most subdued performance with 0.5 per cent monthly growth to $631,661 but just 1.1 per cent annual appreciation, highlighting the divergent recovery patterns across Australia’s unit markets.
The unit market across major cities demonstrated consistent momentum, with Perth continuing to lead year-on-year growth at 13.1 per cent despite its $606,044 median remaining the most affordable among major markets. Brisbane units recorded strong performance with 0.7 per cent monthly growth, reaching $711,915 and achieving 9.2 per cent annual appreciation. Adelaide units posted 0.6 per cent monthly growth to $629,636, delivering solid 9.0 per cent annual growth. Sydney units advanced 0.7 per cent monthly to $900,289, moving closer to the million-dollar threshold with 2.5 per cent annual growth. The Gold Coast maintained its premium position at $903,153 with 0.5 per cent monthly growth and 5.6 per cent annual appreciation. Melbourne continued showing the most subdued performance with 0.5 per cent monthly growth to $631,661 but just 1.1 per cent annual appreciation, highlighting the divergent recovery patterns across Australia’s unit markets.
Regional markets continue demonstrating significant variation, with resource-rich states maintaining leadership positions. Regional Western Australia leads with exceptional 11.5 per cent annual growth, reaching $542,561 with a solid 0.8 per cent monthly increase. Regional South Australia follows closely with 10.0 per cent annual growth and a 0.5 per cent monthly gain, bringing the median to $469,247. Regional Queensland maintains strong conditions with 8.5 per cent annual growth and 0.6 per cent monthly appreciation, reaching $741,565. Regional New South Wales, holding the highest median at $759,961, recorded modest 0.5 per cent monthly growth and 3.9 per cent annual appreciation. Regional Victoria and Northern Territory showed more conservative performance with 0.1 per cent and zero monthly movement respectively, delivering 2.6 per cent and 2.7 per cent annual growth. The resource sector’s continued strength, particularly in Western Australia’s lithium and iron ore industries, and South Australia’s copper production, underpins the superior performance in these markets.
The regional unit market mirrors housing sector trends, with Western Australia and South Australia leading annual growth at 11.8 per cent and 11.2 per cent respectively. Regional Western Australia posted a strong 0.8 per cent monthly increase, reaching $412,078, while regional South Australia gained 0.6 per cent to $300,071. Regional Queensland maintains robust conditions with 8.0 per cent annual growth and 0.6 per cent monthly appreciation, bringing the median to $633,137. Regional New South Wales, with the highest median at $625,710, recorded 0.4 per cent monthly growth and modest 3.2 per cent annual appreciation. Regional Victoria showed limited momentum with 0.2 per cent monthly growth and 2.7 per cent annual appreciation to $438,912. The Northern Territory recorded the only monthly decline at -0.2 per cent, though maintaining 1.4 per cent annual growth. Overall, regional Australia’s unit market continues outperforming the national average with 6.0 per cent annual growth, highlighting the ongoing strength in regional markets driven by lifestyle preferences and relative affordability.
