National home prices rose 0.5% in November and are now 8.7% higher than a year ago, the fastest annual growth since mid-2022.
Momentum has firmed throughout 2025, but stretched affordability means growth remains well below the 20-30% annual gains seen in past booms.
Lower interest rates, increased borrowing capacities, and a recovery in sentiment have underpinned this year’s reacceleration.
Darwin, Hobart, Melbourne, Canberra and Sydney have recorded a strengthening in annual growth compared with late 2024.
Meanwhile, Brisbane, Adelaide and Perth continue to record strong price rises, but growth is no longer accelerating relative to this time last year.
In each of these capitals, unit growth is outperforming houses both quarterly and annually as buyers pivot toward more attainable options.
Regional prices climbed 0.6% in November and were up 9.3% year-on-year.
Regional growth has outpaced the capitals over the past year (9.3% vs 8.5%) and five years (64% vs 47%), supported by relative affordability and lifestyle appeal.
However, regional outperformance is narrowing as the stronger acceleration in home prices is now coming from the capitals.
Population inflows, a lift in investor activity, and the expanded Home Guarantee Scheme have reinforced demand, alongside this year’s series of interest rate cuts.
Further, the federal government’s low-deposit, shared equity scheme will open for applications from Friday December 5.
At the same time, total stock on market has been tight, and the delivery of new housing remains constrained, tilting conditions toward sellers.
These factors point to further price gains through summer.
However, monthly growth eased across the capitals from October’s stronger pace, and with interest rates now expected to remain on hold for an extended period, affordability constraints are likely to see price growth moderate throughout 2026.
