National home prices rose 0.5% in August, marking the eighth consecutive month of growth and taking home values to a fresh record high.
National home prices lifted in August, rising 0.5% to a new record high. This marks eight straight months of growth as the housing market gains momentum following the series of interest rate cuts this year which have boosted borrowing capacities, improved sentiment and drawn buyers back.
As a result, the housing upswing, once narrowly led by a handful of cities, is broadening and closing the gap between outperformers and laggards, ushering in a more uniform phase of price recovery across the capital cities.
Demand has re‑accelerated in Sydney and Melbourne marking a turnaround from the slower conditions observed in late 2024. Melbourne is closing in on its 2022 peak, with relative affordability and strong population growth restoring its appeal.
Darwin has swung from inertia in 2024 to leading annual growth amongst the capitals. Over the past year, among the capitals, Darwin (+10.4%) has recorded the strongest gains amid a surge in investor interest. Lending data from the ABS shows the number of investor loans in the Northern Territory in the 2nd quarter of 2025 has double compared to the same period in 2024.
By contrast, Adelaide and Perth are still growing briskly, but at a slower pace compared to the same period last year.
Market momentum is building amid renewed buyer confidence and improved sentiment, buoyed by by earlier rate cuts and the prospect of further reductions.
Regional areas rose 0.3%, with annual growth of 6.6% outpacing the combined capitals (+4.9%), although capital cities led monthly growth (+0.5%).
Prices in both capital cities and regional areas are sitting at record highs. While growth across the capitals has rebounded in 2025, regional markets remain resilient, supported by affordability and lifestyle appeal and prices are now up 65.2% over the past five years.
Nationally, house and unit prices lifted 0.48% in August. National house prices have lifted 5.43% over the past year, a rise equating to almost $55,000.
Growth in unit values (5.04%) has been comparable through the same period, with annual growth of $33,600.
More affordable regions have outperformed over the past year, with strength in home buying demand buoyed in these regions as buyers push down the price curve.
With three RBA rate cuts delivered this year and further reductions expected, borrowing costs are easing, sentiment has improved, and demand is rebuilding as we head into the spring selling season. Auction clearance rates have strengthened and nationally enquiries per listing are at a three-year high, signalling renewed competition.
Buyer interest is accelerating in Melbourne, Darwin and Hobart, with enquiries surging and competition broadening across suburbs. Melbourne is now closing in on its 2022 peak, supported by relative affordability and strong population growth. In the regions, demand is strengthening most in Victoria and New South Wales, where affordability and lifestyle appeal are drawing buyers.
By contrast, buyer demand is normalising in Perth, Adelaide and Brisbane after several years of outperformance, aided by a lift in listings. This stabilisation suggests price growth in these markets is likely to moderate, while previously lagging markets gather momentum.
Stretched affordability continues to limit the depth of the upswing, but population growth, constrained new housing supply and the expansion of the Home Guarantee Scheme from October will maintain upward pressure on prices.
As we enter spring, conditions point to continued price growth, though the pace will vary across markets.
