Home prices nationally have notched a ninth consecutive month of gains, with new data showing the national market entered the spring selling season on solid ground.
The PropTrack Home Price Index for September 2025, released tomorrow, reveals prices rose 0.5% over the month, pushing the national median home value to a record high and adding about $54,100 to the typical dwelling’s value over the past year.
National home prices are now 6.2% higher than a year ago and have surged 50.6% over the past five years.
Capital city markets strengthened further in September, with prices climbing 0.6% to sit 6.0% above last year’s levels.
Hobart (+0.8%) led the monthly gains among the capitals, followed by Sydney (+0.7%), while Melbourne prices have fully recovered their 2022 peak after several years of underperformance.
On an annual basis, Darwin (+11.4%) and Brisbane (+10.2%) recorded the strongest growth. In the regions, South Australia (+12.3%) and Queensland (+10.2%) delivered the largest year-on-year increases.
Regional Australia continued to show long-term strength. Prices outside the capitals rose 0.4% in September and are now 7.1% higher than a year ago.
Over the past five years, regional home values have jumped 64.4%, compared with 46.5% in the capitals; growth underpinned by relative affordability and lifestyle appeal.
Eleanor Creagh, Senior Economist at REA Group, said the market’s recovery has broadened and momentum is shifting between cities as spring gets underway.
“The housing market remains on a firm upward trajectory this spring selling season. National home prices rose 0.5% in September, extending the upswing to a ninth straight month and lifting values 6.2% higher than a year ago,” she said.
She explained that the combination of increased borrowing capacities and lower borrowing costs, stronger buyer confidence, and renewed competition is underpinning a broad uplift, while momentum is shifting.
“Price growth in Sydney and Melbourne is re-accelerating, Hobart is rebounding, and Darwin is leading annual gains amid surging investor activity. By contrast, Perth, Brisbane and Adelaide are normalising after exceptional multi-year runs, with growth slowing, though prices continue to rise and values remain at record highs.
“Although national growth has accelerated in 2025, it remains below long-run average with stretched affordability leaving limited room for prices to surge at the 20-30% pace of previous booms.”
Looking ahead, she said this year’s series of interest rate cuts, improved sentiment and the October expansion of the Home Guarantee Scheme will add support.
“The housing market is poised for further gains throughout spring, though the pace will vary across cities as momentum shifts.”
