Takeaways
The median national house price dropped by 0.8% to $1,151.730 in the quarter ending February.
This is the first monthly decline since January 20,23.
The market is experiencing its sharpest decline since September 2022 when rapid increases in interest rates constrained the market.
The median national unit price increased by 0.2% in the February quarter to $658,528.
Home prices are expected grow in 2025 despite early declines. However, the pace will be slower than in 2024.
A strong economy and lower interest rates will continue to support the demand and price stability.
The national house prices continue to fall until 2025. In February, the majority of capitals reported monthly declines.
According to the latest My Housing Market data, the median house price in the national capital city fell by 0.8%, to $1,151.730, compared to January quarter results.
The national quarterly house prices have now declined for consecutive months for the very first time since January 20,23. The rate of decline is the highest since September 20,22, when interest rates rose sharply and slowed down the housing market.
Darwin, Adelaide, and Perth were the three capitals that reported higher house prices in the February quarter than the previous quarter of January, by 0.6%, 0,2%, and 0.2%, respectively.
All other capitals experienced falling prices. Hobart, Sydney, Brisbane and Canberra all reported a decrease in prices.
Perth, Brisbane Adelaide and Sydney have seen house prices increase by 19.4%, 9,9%, 8.6%, and 3.1% respectively.
The annual house price in Darwin has fallen by 0.8%, while Melbourne’s is down by 1.0% and Hobart’s is down by 1.9%. Canberra has also seen a 3.2% drop.
|
Quarterly Median House Price February 2025 |
||||
|
Median |
Month |
1 year |
2 Year |
|
|
Sydney |
$1,629,414 | -1.1% | 3.1% | 13.7% |
|
Melbourne |
$1,038,289 | -0.6% | -1.0% | 1.4% |
|
Brisbane |
$995,678 | -1.2% | 9.9% | 27.0% |
|
Adelaide |
$963,829 | 0.2% | 8.6% | 24.7% |
|
Perth |
$977,813 | 0.2% | 19.4% | 42.6% |
|
Hobart |
$666,341 | -0.8% | -1.9% | -4.6% |
|
Darwin |
$614,192 | 0.6% | -0.8% | -1.7% |
|
Canberra |
$917,737 | -3.1% | -3.2% | -2.4% |
|
National |
$1,151,730 | -0.8% | 4.8% | 14.5% |
Apartment / unit prices
In contrast to house prices, national unit price rose marginally by 0.2%, to $658.528. This was 4.7% higher than February quarter 2024.
Perth’s unit price growth in February was 1.9%, followed by Adelaide at 0.8%, Hobart and Canberra each at 0.4%, Sydney prices up by 0.1%, and Melbourne prices unchanged.
The unit price of Darwin’s volatile product fell 4.7% in the last month.
|
Quarterly median unit prices February 2025 |
||||
|
Median |
Month |
1 year |
2 Year |
|
|
Sydney |
$770,535 | 0.1% | 2.8% | 8.1% |
|
Melbourne |
$549,654 | 0.0% | -1.2% | 2.7% |
|
Brisbane |
$588,341 | 0.4% | 23.0% | 41.0% |
|
Adelaide |
$534,779 | 0.8% | 16.2% | 37.6% |
|
Perth |
$520,646 | 1.9% | 20.8% | 42.9% |
|
Hobart |
$556,143 | 0.4% | 16.3% | -0.6% |
|
Darwin |
$340,120 | -4.7% | -5.5% | -6.2% |
|
Canberra |
$500,688 | 0.4% | -0.3% | -1.3% |
|
National |
$658,528 | 0.2% | 4.7% | 11.2% |
Brisbane, Perth Adelaide and Hobart recorded the highest annual unit prices growth in the year ending February quarter 2025, with increases of 23.0%, 20,8% and 16.3%, respectively.
Sydney’s annual unit prices have increased by 2.8%. Canberra’s annual unit price has decreased by 0.3%. Melbourne is down 1.1% and Darwin has fallen 5.5%.
The housing market in capital cities has continued to show weaker results than 2025, with house prices dropping again over February but with modest unit price increases over the month.
Although Brisbane and Perth were still the top performers in the past two-year period, the growth rates in February for these capitals were at their lowest level since September 2022.
Sydney’s house price growth has also been at its lowest level since late 2022.
A weakening of the housing market in early 2025 is due to the usual seasonal effects, such as December and January holidays that result in a significant reduction in buyer and seller activity. This is especially true in higher-priced segments.
The robust home price increases through 2023 and 2020 will, however, increase affordability barriers which are now impacting on price outcomes and flattening the market cycles.
The recent boom markets of Brisbane Adelaide and Perth will likely continue to produce strong results in 2025, although the price growth is expected to be significantly lower than the heady 2024 results.
Sydney will continue to report stable results, while Melbourne’s market is likely to remain in a rut and await a boost in confidence. This is especially true for the inner-suburban markets of prestige that are still regional underperformers.
The RBA’s recent rate cut is expected to boost housing market activity, and increase home prices by improving affordability.
The economy is still strong, with low unemployment rates and a surge in employment growth. Recent interest rate reductions will also boost wage increases.
Rents in capital cities are high because of the chronic undersupply of housing, which is a result of increased migration. However, rental growth is slowing down as a result of reduced tenant demand.
However, high rents and prices continue to be a clear incentive for first-time home buyers and investors looking for solid returns.
Housing markets in capital cities have generally seen higher prices for houses and units between 2003 and 2024, but 2025 has been markedly different due to the holiday season and declining affordability.
The national home prices will likely continue to grow in 2025, although at a slower pace than the results of 2024. This is supported by lower interest rate levels and a strong economy.
