National home prices rose 0.4% in June, pushing values to a record high.
As interest rates have fallen, price momentum has strengthened and extended across the country, with all markets recording gains in June.
• National home prices rose 0.4% in June, marking a new record high. Prices are now 4.6% higher than a year ago, up $40,900 over the past year.
• Capital city markets drove the gains, with prices up 0.4% month-on-month.
•Adelaide posted the strongest monthly rise (+0.6%), extending its streak of outperformance and retaining its title as the strongest performing capital city over the past year (+9.8%).
• Sydney (+0.5%), and Hobart (+0.5%) also recorded solid rises in June, while Brisbane and Perth recorded strong annual growth, up 8.3% and 7.8% respectively. The median house price in Brisbane has now risen above $1,000,000 with house prices up 6.9% over the past year - a $68,300 rise.
• Melbourne prices rose 0.3%, continuing the city’s recovery. However, values remain 1.1% below their peak.
• Prices in regional areas climbed 0.3% in June, with annual growth of 6.0% outpacing the combined capitals (+4.1%).
• While growth in the regions has been slower than the rebound across the capitals in 2025, regional markets remain resilient, supported by affordability and lifestyle appeal. Regional prices are now up just above 65% over the past five years.
Capital city markets are leading the upturn with price growth increasingly synchronised, following 2024’s divergent performance. The gap between outperformers and laggards is narrowing, signalling a more uniform phase of price recovery across the capital cities.
Momentum is now broad-based across capital city markets. While Brisbane and Perth - who were last year’s frontrunners - continue to post gains, their pace has moderated to 0.3% in June. In contrast, Sydney (0.5%) and Melbourne (0.3%) have stabilised and are contributing to the national upswing, following a more subdued period toward the end of 2024 for Sydney, and extending the past 2.5 years for Melbourne.
All capitals recorded price growth in June, and monthly increases for the eight capitals ranged narrowly from 0.2% to 0.6%, reflecting a synchronisation compared to the wider divergences seen throughout 2024.
Annual growth rates remain more varied, ranging from 0.5% in Canberra to 9.8% in Adelaide, but the monthly convergence points to a market responding broadly and consistently to lower interest rates and improved sentiment.
Market momentum is building amid renewed buyer confidence and improved sentiment, buoyed by falling interest rates and expectations of another rate cut in July. However, the upturn remains measured as affordability constraints keep the pace of growth in check.
Further interest rate cuts expected later this year will continue to ease borrowing costs, adding to the momentum in housing demand and reinforcing recent price growth.
Regional areas rose 0.3%, with annual growth of 6.0% outpacing the combined capitals (+4.1%), although capital cities led monthly growth (+0.4%).
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 just over 65% over the past five years.
Nationally, house and unit prices lifted 0.4% in June. National house prices have lifted 4.6% over the past year, a rise equating to almost $50,000.
Growth in unit values (4.4%) has been comparable through the same period, with annual growth of $30,400.
Markets in Queensland and South Australia continue to record the strongest growth.
Despite moving lower in May, interest rates have been sustained at high levels for much of the past year, and home prices have risen significantly in recent years whilst growth in household incomes has not kept up with these increases. As a result, affordability has deteriorated significantly.
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.
Further interest rate cuts expected later this year will continue to ease borrowing costs, adding to the momentum in housing demand and reinforcing recent price growth.
Despite these tailwinds, the upturn remains gradual and stretched affordability continues to limit the depth of the upswing.
Population growth, limited new supply, and expectations of further rate relief are keeping upward pressure on prices, especially at the more affordable end of the market. With interest rates moving lower, these factors are likely to sustain continued price growth over the second half of 2025. However, activity is likely to remain skewed toward markets and segments where buyers can still find value.
Despite these tailwinds, the upturn remains gradual and stretched affordability will see a more measured upswing than in previous easing cycles.
Methodology
The PropTrack HPI model measures changes in residential dwelling values across Australia, providing an up-to-date and accurate assessment of housing market performance and trends. The PropTrack HPI is calculated daily and reported monthly. It includes all properties that are defines as residential and are grouped as residential units, houses and all dwellings.
Measuring the change in the value of homes can be challenging because the size and quality of dwellings that transact over time are no representative of the broader stock of dwellings. The PropTrack HPI model overcomes this by implementing an adjacent period hedonic imputation methodology. This method captures the rate of change of home values by adjusting for the compositional differences in property attributes. The model leverages hedonic regression by measuring the relationship between observed prices and property features, including information about each property's location and time of sale.
The PropTrack HPI is a revisionary index. The full history is recalculated each month, and index values for the latest three years are revised. This is an important feature because it compensates for the delay in the receipt of comprehensive official records of sales transactions after settlement occurs. The revisionary nature of the PropTrack HPI mitigates significant revisions when new data are received.
PropTrack aligns to the Australian Statistical Geography Standard (ASGS) as defined by the Australian Bureau of Statistics.
For more detailed information on the PropTrack HPI, please visit our website to download the full methodology. This template was updated on 1st July 2025.
