October 29th, 2025
Australian residential property market now worth $12 trillion
Blog
Article by
Key points
- Australian home values rose by 1.1% in October, the strongest monthly rise since mid-2023.
- Tight supply, policy support and cumulative rate cuts in 2025 are fuelling demand across cities and regions.
- The RBA paused its rate cuts in November but that isn’t expected to take the heat out of the market.
Australia’s housing values lifted by 1.1% in October 2025, recording the fastest pace of growth since June 2023, according to Cotality. The gain brings the national median value to $872,538.
Since the first rate cut in February 2025, home values are up by 6.1% nationally. Before that cut, prices had flattened or fallen through late 2024 and early 2025.
All capitals record growth
Every capital city saw values go up in October 2025. Across the combined capitals, the median value went up by 1.1%, now sitting at $959,526.
Perth led with the biggest monthly increase of 1.9%, bringing its median value to $884,471. Hobart recorded the smallest at 0.3%, with the median value at $686,262.
Across the combined capitals, the 1.1% gain represents an extra $10,000 in the median dwelling value in just one month. Since February, capital city values have climbed by 5.9%, which is about $53,700 in dollar terms.
Regional market growth not far behind capital cities
Outside of the capital cities, home values rose by 1.0% in October, the strongest monthly increase since March 2022. It brings the combined regional median value to $710,573.
The top three regions with the strongest monthly gains were:
- Regional WA: 1.8% increase to $629,417
- Regional QLD: 1.1% increase to $774,728
- Regional NSW: 1.0% increase to $789,928
Why values are still rising
Even as rate cuts pause, demand remains strong relative to supply. In the three months to October 2025, estimates suggest there were 140,000 home sales, compared with only 125,000 new listings. With more buyers than sellers, competition is likely to keep pushing values higher through the end of the year.
The introduction of the Federal Government’s expanded 5% Deposit Guarantee Scheme on 1 October 2025 also drove buying activity, particularly among first home buyers and those purchasing in more affordable segments. Price growth has been stronger at the lower end of the market, as the new scheme pushes demand for more affordable homes ahead of higher-value properties.
Cash rate on hold but market still hot
In November 2025, the Reserve Bank of Australia (RBA) kept the cash rate steady at 3.6% in its last board meeting of the year. The decision followed higher-than-expected inflation in the September 2025 quarter, which prompted the RBA to take a more cautious approach. The RBA cut rates three times in 2025, from 4.1% in February 2025.
While the pause could slightly cool sentiment in the short term, most economists don’t expect much impact on property prices given ongoing supply shortages and strong buyer demand.
—————–
Disclaimer: The information enclosed has been sourced from Cotality and the Reserve Bank of Australia, and is provided for general information only. It should not be taken as constituting professional advice.
PropertyMe is not a financial adviser. You should consider seeking independent legal, financial, taxation, or other advice to check how the information relates to your unique circumstances.
We link to external sites for your convenience. We are selective about which external sites we link to, but we do not endorse external sites. When following links to other websites, we encourage you to examine the copyright, privacy, and disclaimer notices on those websites.
