The housing upswing has gained momentum and home prices have hit a new record high.
National home prices rose 0.6% in October, extending the upswing to a tenth straight month and lifting values 7.5% higher than a year ago – the strongest annual pace since May 2024.
National home prices rose 0.6% in October, extending the upswing to a tenth straight month and lifting values 7.5% higher than a year ago. The housing upswing has gained momentum this spring selling season and national annual growth has picked up by 2.1 percentage points since the start of 2025 to the strongest annual pace since May 2024.
Increased borrowing capacities, lower mortgage rates and improving sentiment are fuelling renewed competition, and national prices hit a new peak in October. However below the national headline the pattern of growth is shifting.
Over the past year, Darwin, Hobart, Melbourne and Sydney have seen the fastest acceleration in annual gains, as previously softer markets regain momentum.
In contrast, in Brisbane, Adelaide and Perth the pace of annual growth is easing from earlier highs, though prices are at record levels and continue to rise briskly.
All regional markets have slowed, except Regional Victoria, narrowing the regional capital outperformance.
Nationally, annual growth has lifted above the 30-year average (+6.9%), yet stretched affordability is a handbrake on growth (+7.5%) which remains well below the 20-30% pace of past booms.
Market momentum is building amid renewed buyer confidence and improved sentiment, buoyed by earlier rate cuts. But even with interest rate cuts restoring borrowing power and sentiment lifting, the capacity of households to bid prices higher is capped. Despite recent acceleration, national annual growth is a little above the past decade’s average, not a re-run of the 20–30% surges of earlier booms.
Regional prices climbed 0.6% in October and are up 7.9% year-on-year, continuing to outpace the capitals over the past year and five years (64.2% vs 47.0%), supported by relative affordability and lifestyle appeal.
Though regional outperformance is narrowing as capital cities lead the current upswing. All regional markets have slowed, except regional Victoria.
Nationally, house and unit prices are now rising at a similar pace – house prices lifted 0.6% in October, while unit prices nationally rose 0.7%.
National house prices have lifted 7.6% over the past year, while growth in unit values (7.2% year-on-year) has been comparable.
The past year’s strongest markets have been concentrated in Queensland where comparative affordability, lifestyle appeal, and investor appetite have amplified gains.
However, over the past quarter momentum has clearly rotated and many Sydney regions have seen the strongest growth in the 3 months to October 2025.
With interest rates moving lower this year, momentum in the housing market has strengthened, and national annual growth has picked up by 2.1 percentage points since the start of the year, marking a turnaround from the slower conditions observed in late 2024.
The current upswing is a synchronised expansion, underpinned by lower rates and constrained supply, with a broad-based lift in prices across the country.
Stretched affordability remains a brake on the pace of growth, which has accelerated but is far beneath the 20–30% surges that defined previous booms.
Looking ahead, this year’s series of rate cuts, population inflows and the expanded Home Guarantee Scheme will continue to bolster demand.
With stock on market constrained and new supply challenged, conditions remain tilted toward sellers.
The market appears set for further gains through spring and into summer, with leadership continuing to rotate as momentum shifts to previous laggards
