Australia’s housing market continued to record growth in March, but the pace is clearly becoming more measured and uneven.
National property prices increased by 0.7% over the month, taking national values 2.1% higher over the March quarter. While that’s still a solid result, it’s a step down on the stronger momentum seen late last year.
At a high level, regional markets are continuing to outperform, up by 1.1% in March and 3.3% over the quarter. Combined capital cities are tracking slightly lower, with values rising 0.6% over the month and 1.8% across the quarter.
Underneath these headline numbers, the differences between cities and price points are becoming more apparent.
A market that’s moving in different directions
March data shows a clear split between markets that are still pushing higher and those starting to ease.
Perth remains the standout performer, with dwelling values climbing by 2.5% in March and 7.3% over the quarter. In dollar terms, that quarterly growth has added about $69,000 to the median dwelling value.
The Brisbane and Adelaide markets are also strong, up by 1.8% and 1.2% respectively in March.
Darwin is also showing renewed momentum, recording a 1.6% monthly. Hobart and Canberra are holding firm, seeing price rises of 0.8% and 0.4% in March respectively.
Sydney and Melbourne are starting to lose a bit of pace. Values in Sydney edged down by 0.1% in March and sit 0.2% lower over the quarter. Melbourne saw a slightly larger pullback, down by 0.2% for the month and 0.6% across the quarter.
At the same time, more listings are coming onto the market and auction results aren’t as tight as they were late last year. Buyers have a bit more room to move, and that urgency has eased.
In the markets still pushing higher, buyers are clearly gravitating towards more affordable options. Lower-priced homes are drawing stronger interest as borrowing limits continue to shape what people can realistically buy.
Regional areas are holding up well. Regional WA continues to lead, with values up by 2.2% in March. Regional Queensland and South Australia are also seeing steady growth.
Momentum is easing, but the market remains stable
Overall, the pace of growth is settling rather than dropping off. Prices are still rising, but conditions are starting to feel more balanced.
Fewer homes are changing hands right now, with activity sitting a bit below last year and typical levels. With the cash rate at 4.10% and everyday costs still high, many buyers are taking a step back and weighing things up more carefully.
It’s not a sudden shift, more a steady cooling. Affordability is front of mind, and that’s where most of the competition is. In many capitals, lower-priced homes are still seeing stronger interest than the top end, as buyers focus on what fits their budget.
The market is still moving, just without the same pace. Results are starting to vary more depending on the city and price bracket. What happens next will come down to borrowing conditions, how much stock is available and how confident buyers feel in the months ahead.
