This week’s Australian Property Market Update

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July 14, 2025

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Key takeaways

The RBA’s decision to keep interest rates unchanged is unlikely to impact the property market.

In fact, auction clearance rates were very strong this weekend, showing the depth of buyer demand.

The market is expecting further interest rate falls, considering Australia’s economic growth has slowed, with consumer spending, business investment and building approvals all weakening.

The two interest rate drops we enjoy in February and May have already lifted confidence in the housing market, with auction clearance rates strengthening and national dwelling values rising month after month.

With interest rates forecast to fall another two or three times by early 2026 and housing supply still critically low, there is little doubt that house prices will continue to rise.

This week, Cotality also reports that:

*Sydney property prices increased 0.2% over the last week, increased 0.6% over the last month and are 1.3% higher than they were 12 months ago.

*Melbourne property prices increased 0.1% over the last week, increased 0.4% over the last month, and are -0.2% lower compared to 12 months ago.

*Brisbane property prices increased 0.1% over the last week, increased 0.8% over the last month and are 7.0% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.6% over the last month and are now 2.7% higher than they were 12 months ago.

The number of properties taken to auction fell to 1,786 last week.

The preliminary auction clearance rate has held above the 70% mark for the past four weeks and across eight of the past ten weeks.

This current property cycle has been driven by an undersupply of good properties relative to current demand pushing up property values and rents there was nothing to suggest there will be any significant change in the near future.

Unfortunately, the undersupply properties is going to persist for some time with all commentators agreeing that there is no way we’re going to hit the housing construction targets required to meet our demand.

The Reserve Bank of Australia’s decision to keep interest rates unchanged despite easing inflation is unlikely to impact the property market.

In fact, auction clearance rates were very strong this weekend, showing the depth of buyer demand.

The market is expecting further interest rate falls, considering Australia’s economic growth has slowed, with consumer spending, business investment and building approvals all weakening.

Even in a quieter winter market and despite much of Australia being on school holidays, demand for property has remained consistent, with auction clearance rates regularly above 70%.

With interest rates forecast to fall another two or three times by early 2026 and housing supply still critically low, there is little doubt that house prices will continue to rise.

On the auction front this week…there were 1,458 auctions held across the combined capitals last week.

The preliminary auction clearance rate has slipped a little since reaching a year-to-date high three weeks ago (74.5%).

See Cotality’s full auction report below.

This week, Cotality also reports that:

Sydney property prices increased 0.2% over the last week, increased 0.6% over the last month and are 1.3% higher than they were 12 months ago.
Melbourne property prices increased 0.1% over the last week, increased 0.4% over the last month, and are -0.2% lower compared to 12 months ago.

Brisbane property prices increased 0.1% over the last week, increased 0.8% over the last month and are 7.0% higher than they were 12 months ago.

Overall, Australian capital dwelling prices increased 0.6% over the last month and are now 2.7% higher than they were 12 months ago.

Clearly, the property cycle is moving on but our markets are very fragmented.

Source: Cotality July 14th 2025

Of course, these are “overall” figures – there is not one Sydney or Melbourne or Brisbane property market.

And various segments of each market are performing differently.

At the beginning of this cycle the upper quartile of the market lead the upswing but last year the lower quartile across every capital city recorded a stronger outcome for housing values relative to its upper quartile counterpart.

The following chart shows how various segments of each capital city market are performing differently with median-priced properties performing well.

To help keep you up-to-date with all that’s happening in property, here is my updated weekly analysis of data and charts as of 14th July 2025 provided by SQM Research, Cotality, and realestate.com.au.

Current property asking prices

Property asking prices are a useful leading indicator for housing markets – giving a good indication of what’s ahead.

Here is the latest data available:

Sydney

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	2,032,366	-25.371	-0.8%	4.6%
All Units	851,355	4.945	0.7%	4.2%
Combined	1,551,575	-13.324	-0.5%	4.3%

Source: SQM Research

Melbourne

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,305,221	1.979	0.6%	4.0%
All Units	627,564	-2.164	-0.9%	3.8%
Combined	1,091,121	0.546	0.3%	3.8

Source: SQM Research

Brisbane

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,253,122	0.463	0.9%	12.1%
All Units	733,206	2.094	1.1%	15.8%
Combined	1,122,396	0.802	1.0%	12.5%

Source: SQM Research

Perth

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,151,092	-0.678	0.9%	12.5%
All Units	641,635	5.825	0.6%	20.7%
Combined	1,017,623	0.996	0.9%	13.7%

Source: SQM Research

Adelaide

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,063,151	-0.351	1.0%	16.2%
All Units	559,302	1.698	0.7%	20.6%
Combined	972,522	-0.003	1.0%	16.6%

Source: SQM Research

Canberra

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,210,962	12.663	3.6%	-0.5%
All Units	597,780	-0.156	-0.2%	0.4%
Combined	982,047	7.451	2.6%	-0.8%

Source: SQM Research

Darwin

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	777,336	11.059	0.1%	17.8%
All Units	413,945	2.305	1.4%	10.5%
Combined	634,520	7.583	0.4%	15.8%

Source: SQM Research

Hobart

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	843,954	-0.318	0.1%	6.8%
All Units	497,775	1.525	0.2%	-0.2%
Combined	791,219	-0.066	0.1%	6.0%

Source: SQM Research

National

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,007,227	2.778	0.8%	9.4%
All Units	584,584	1.772	0.4%	5.6%
Combined	915,786	2.497	0.7%	8.7%

Source: SQM Research

Cap City Average

Property type	Price ($)	Weekly Change	Monthly Change %	Annual % change
All Houses	1,472,562	-16.300	-0.7%	6.0%
All Units	736,014	4.313	0.8%	6.8%
Combined	1,253,128	-10.326	-0.4%	5.9%

Source: SQM Research

The value of property asking prices as a leading indicator for housing markets is quite significant.

In fact it’s more valuable than median prices which can be quite misleading.

Let’s delve into why this is the case and how it impacts the real estate market.

Early Market Sentiment Indicator: Asking prices often reflect the current sentiment of sellers in the real estate market.
If sellers are confident, they might set higher asking prices, anticipating strong demand.
Conversely, if sellers are uncertain or perceive a market downturn, they might lower their asking prices to attract buyers.
This makes asking prices a real-time indicator of market sentiment, often preceding changes in actual sales prices.
Predictive of Future Price Trends: Trends in asking prices can be predictive of where the actual property prices are headed.
For example, a consistent rise in asking prices over a period can signal an upcoming rise in transaction prices.
Impact of Economic Factors: Economic factors such as interest rates, employment rates, and broader economic health influence asking prices.
For instance, changes in the Reserve Bank of Australia’s policies or shifts in the job market can quickly reflect in the asking prices, providing insights into how these factors are influencing the housing market.
Regional Variations: In a diverse market like Australia’s, asking prices can also provide insights into regional disparities.
For instance, the property markets in Melbourne and Sydney might behave differently from those in Brisbane or Perth. Asking prices can give early indications of these regional trends.
Influence of Supply and Demand: Asking prices are also a response to the balance of supply and demand in the market.
In areas with limited supply and high demand, asking prices tend to be higher and vice versa.

However, it’s important to note that while asking prices are a valuable indicator, they should not be used in isolation.

Other factors like actual sales prices, time on the market, auction clearance rates, and economic conditions also play crucial roles in understanding the property market dynamics.

Last weekend’s auction report

Preliminary clearance rate holds above 70% for fifth week running

There were 1,458 auctions held across the combined capitals last week, down from 1,794 the week prior and 1,512 this time last year.

Last week was the lowest volume of weekly auctions since the King’s Birthday long weekend.

The preliminary auction clearance rate has slipped a little since reaching a year-to-date high three weeks ago (74.5%), coming in at 72.2% last week.

However, this was the fifth week running where the preliminary clearance rate has held above 70% across the combined capitals.

Melbourne was the most active auction market last week, with 630 homes going under the hammer, down from 767 a
week ago and roughly in-line with the volume of auctions held a year ago (628).

The preliminary clearance rate fell to 70.5% last week, the lowest in 12 weeks, but the eleventh straight week where the preliminary clearance rate has held above the 70% mark.

There were 578 homes taken to auction in Sydney last week, down from 685 the week prior but up relative to a year ago when 560 homes were auctioned.

The preliminary clearance rate strengthened last week, reaching 76.2%, the second highest clearance rate so far this year, behind the week ending 16th February (76.6%).

Across the smaller capitals, Brisbane hosted 103 auctions last week, the lowest volume in 12 weeks.

Only 61.3% of auctions have reported a successful result so far, the lowest preliminary clearance rate in six weeks.

In Adelaide, 75 properties went to auction last week, with 75.6% returning a positive outcome based on results collected to-date.

The preliminary clearance rate was up from 65.7% over the previous week and is holding above the year-to-date average of 67.3%.

Canberra hosted 61 auctions last week, the lowest volume in six weeks. 68.0% have reported a successful result so far, down from 73.1% the week prior (revised to 69.6% on final numbers).

There were just nine auctions in Perth last week, with six of the seven results captured so far reporting a successful result.

Two auctions were held in Tasmania last week, with the results yet to be reported.

We should see a subtle rise in auction volume this week, with around 1,520 capital city homes currently scheduled to go under the hammer, rising to around 1,690 next week.

Our rental markets

According to Cotality, rental growth has continued to ease across most of Gross rental yields, dwellings Australia, with the national rental index rising 1.3% through the June quarter, the lowest Q2 change since 2020 (-1.7%).

Across the capital cities, the ACT recorded the smallest quarterly rise across the capital cities, with rents up 0.3% over the quarter, followed by Melbourne and Adelaide with a three-month increase of 0.7%.

Darwin stood out with the strongest quarterly lift in rents, up 2.9%, followed by Brisbane with a 2.0% increase and Sydney up 1.5%.