National home prices rose 0.6 per cent in October, marking the 10th consecutive month of growth and lifting values 7.5 per cent higher than a year ago; this is the strongest annual pace since May 2024, according to the latest PropTrack Home Price Index.
The October data, released by REA Group’s PropTrack, shows the median home value now sits at $858,000, up around $65,200 over the past 12 months and 51 per cent higher than five years ago.
“National home prices rose 0.6% in October, extending the upswing to a 10th straight month and lifting values 7.5% higher than a year ago,” said REA Group Senior Economist Eleanor Creagh.
“Increased borrowing capacities, lower mortgage rates and improving sentiment are fuelling renewed competition, but the pattern of growth is shifting.”
Capital cities regain momentum
Capital city prices rose by 0.6 per cent in October and are up 7.4 per cent year-on-year, with all capitals hitting record highs except Hobart (–3.9% below peak) and Canberra (–1.0% below peak).
Adelaide led the monthly gains with a 1.2 per cent rise, followed by Brisbane at 0.9 per cent, while Sydney, Perth and Hobart each rose 0.6 per cent, and Melbourne gained 0.5 per cent.
Over the past year, Darwin (+12.8%), Brisbane (+12.6%), and Perth (+11.8%) recorded the largest capital city gains, with South Australia (+12.0%) and Queensland (+11.2%) leading regional growth.
Ms Creagh noted that some previously softer markets are now seeing quick growth.
“Over the past year, Darwin, Hobart, Melbourne and Sydney have seen the fastest acceleration in annual gains, with these previously softer markets regaining momentum,” she said.
“In contrast, the pace of annual growth is easing from earlier highs in Brisbane, Adelaide and Perth, though prices are still at record levels and continue to rise briskly.”
Regional outperformance narrowing Regional prices also climbed 0.6 per cent in October and are up 7.9 per cent year-on-year.
While regional markets have outpaced the capitals over the past five years (64.2% versus 47.0%),
PropTrack notes this outperformance is narrowing as city markets take the lead in the current upswing.
The outlook is promising as demand remains strong amid tight supply.
“Looking ahead, this year’s series of rate cuts, population inflows and the expanded Home Guarantee Scheme will continue to bolster demand,” she said.
“With stock on market constrained and new supply challenged, conditions remain tilted toward sellers. The market appears set for further price gains throughout spring and into summer.”
