Ray White Group Chief Economist, Nerida Conisbee, said the 0.25 per cent rate cut has reinvigorated buyer confidence after a flat July performance, delivering the strongest monthly growth in over a year.
“National house prices reached $961,000 in August 2025, whilst unit prices climbed to $710,000, representing robust annual growth rates of 8.0 per cent and 6.3 per cent respectively,” Ms Conisbee said.
“The immediate impact of lower borrowing costs was evident across all major markets, with even previously subdued regions showing renewed strength.”
Ms Conisbee highlighted Perth as the standout performer nationally, with house prices increasing 1.7 per cent monthly to reach $970,000.
“Perth maintained its position as the nation’s standout performer, with house prices jumping 1.7 per cent monthly to $970,000, delivering extraordinary annual growth of 12.4 per cent,” she said.
“Perth units were equally impressive, posting 1.7 per cent monthly growth and a remarkable 14.5 per cent annual gain to reach $644,000.”
Brisbane has emerged as another key growth market according to Ms Conisbee, with house prices surging 1.6 per cent to $1.09 million, marking a significant rebound from July’s tepid performance.
“This marked a significant rebound from Brisbane’s tepid 0.2 per cent July performance, highlighting how quickly sentiment can shift when borrowing costs fall,” she said.
Sydney also showed strong growth, with houses accelerating to 1.5 per cent monthly growth and reaching $1.68 million, while maintaining solid annual growth of 6.3 per cent.
After prolonged weakness, Melbourne’s property market is showing tentative signs of stabilising, though it remains the laggard among major markets.
“Melbourne houses posted 1.1 per cent monthly growth to $1.06 million, a notable improvement from July’s 0.1 per cent decline,” Ms Conisbee said.
“Annual growth of 4.3 per cent, whilst modest by current national standards, represents the city’s strongest yearly pace in recent months.”
She said that Melbourne’s protracted weakness reflects several structural challenges including being one of the most heavily taxed states for property and having the highest unemployment rate.
Ms Conisbee identified the unit market’s resilience as one of the standout stories of 2025, with apartment prices demonstrating consistent growth even during periods of house price volatility.
“National unit growth of 1.0 per cent monthly significantly exceeded expectations, driven by chronic undersupply and affordability-driven demand from buyers priced out of the detached housing market,” she said.
Perth units led with exceptional 1.7 per cent monthly growth, while Brisbane units rebounded strongly with 1.3 per cent monthly growth after July’s modest pace.
The acceleration in price growth presents both opportunities and challenges for the market heading into the critical spring selling season according to Ms Conisbee.
“Rising prices typically encourage more sellers to enter the market, and early indicators suggest listing volumes are beginning to increase as vendors gain confidence in market conditions,” she said.
“However, the supply response may struggle to keep pace with renewed buyer demand, particularly if the Reserve Bank delivers another cut before year’s end.”
Ms Conisbee said that the August rate cut has effectively ended the brief pause in Australia’s housing price growth trajectory.
“With borrowing costs falling and buyer confidence returning, the combination of lower mortgage rates and pent-up demand from July’s hiatus appears poised to drive continued price growth through the remainder of 2025,” she said.
