National housing values rose 1.4% over Q2 2025, accelerating from 0.9% in Q1. Annual growth reached 3.4%, with quarterly momentum suggesting the growth trend is moving through a low point. Regional markets (1.6%) continue to outperform capitals (1.4%) quarterly, though the performance gap is narrowing with stronger monthly gains in capitals through May and June.
| Capital City | 3-Month Growth | Annual Growth | Rental Growth (Annual) | Gross Yield | Market Status | Key Characteristics |
|---|---|---|---|---|---|---|
| Sydney | +1.1% | +1.3% | +1.9% | 3.1% | Record High | Strong quarterly momentum, premium market resilience |
| Melbourne | +1.1% | -0.4% | +1.2% | 3.7% | 3.9% below peak | Recovering from correction, improving quarterly growth |
| Brisbane | +2.0% | +7.0% | +3.8% | 3.7% | Record High | Sustained strong growth, interstate migration driver |
| Adelaide | +1.1% | +8.0% | +4.7% | 3.7% | Record High | Consistently strong performer, affordability advantage |
| Perth | +2.1% | +7.0% | +4.9% | 4.3% | Record High | Mining sector strength, supply constraints |
| Hobart | +0.9% | +2.0% | +5.3% | 4.4% | 10.2% below peak | Stabilising after correction, rental strength |
| Darwin | +4.9% | +6.0% | +6.2% | 6.5% | Record High | Strongest quarterly growth, new peak after 11 years |
| Canberra | +1.3% | +0.3% | +1.6% | 4.1% | 5.3% below peak | Modest recovery, government employment stability |
| Regional Market | 3-Month Growth | Annual Growth | Rental Growth (Annual) | Gross Yield | Market Characteristics |
|---|---|---|---|---|---|
| Regional NSW | +1.1% | +3.5% | +4.6% | 4.1% | Steady growth, coastal demand strong |
| Regional Victoria | +1.4% | +1.0% | +4.2% | 4.3% | Recovery underway, tree-change appeal |
| Regional Queensland | +2.0% | +7.9% | +5.6% | 4.4% | Mining regions driving growth |
| Regional South Australia | +3.3% | +11.6% | +5.7% | 4.6% | Outstanding performance, wine regions strong |
| Regional Western Australia | +2.7% | +11.9% | +10.3% | 5.9% | Mining boom effects, highest yields |
| Regional Tasmania | -0.4% | +2.9% | +2.7% | 4.6% | Mixed conditions, tourism recovery |
| Regional Northern Territory | +0.6% | -1.9% | +4.1% | 7.7% | Volatile conditions, high yields compensate |
Near-term Outlook: With quarterly growth accelerating and the annual trend likely moving through a low point, the growth trend is expected to gradually rise in the second half of 2025. Further RBA rate cuts anticipated to support sentiment and buying power.
Regional Leadership: Regional markets expected to maintain outperformance, particularly in WA and SA, driven by mining sector strength and lifestyle migration trends.
Capital City Recovery: Sydney and Brisbane at record highs with Darwin achieving new peak after 11 years. Melbourne's recovery gaining momentum as correction effects fade.
Supply-Demand Imbalance: With 44.8% of suburbs nationally at peak values and listing volumes at historic lows, supply constraints likely to support continued price appreciation across most markets.
Data sourced from Cotality Monthly Housing Chart Pack July 2025 • This report provides general market information and should not be considered as financial advice