Australian Real Estate Market Increases 1.7% In The First 5 Months Of The Year
MAP: The Australian real estate market continues to record clear signs of recovery, specifically the value of housing growth nationwide increased by 0.5% in May 2025. Since the beginning of the year, the nationwide Home Value Index (HVI) has increased a total of 1.7%.
This growth momentum was recorded in most major cities, with a minimum price increase of 0.4% in May.
According to Mr. Tim Lawless – Research Director at CoreLogic: “The current upward momentum of the Australian real estate market is largely influenced by the interest rate cuts that have been, are and are about to take place. Along with that, the number of successful auctions has increased significantly after the announcement by the Reserve Bank of Australia (RBA) last May.
See more: How much has the Reserve Bank of Australia reduced interest rates?
Australian Housing Growth Steady
With the exception of regions such as Melbourne (-1.2%) and Canberra (-0.7%) which recorded year-on-year declines, year-on-year growth in the Australian property market remained stable – especially against a backdrop of rising interest rates and living costs.
Price Convergence Trend in Big Cities
The Australian real estate market is also recording a trend of price convergence in major cities. The difference between the highest and lowest annual home values was 9.8%, the lowest since March 2021. This shows more stability across the market.
Previously, in August 2024, this difference reached 26.1%, showing a large divide between regions – especially between Perth (+24.5%) and Hobart (-1.6%).
The Australian Real Estate Market Has Differences Between Segments
In most cities, the low-end housing segment continues to lead with impressive increases. However, thanks to the impact of interest rate cuts, the high-end segment also shows signs of catching up with the market. In Sydney and Canberra, the high-end housing segment tends to have even higher price increases than other segments.
See more: Sydney real estate projects
Not only big cities, suburban areas are also closely following the overall growth momentum of the market. All “rest of state” areas recorded an increase in house prices from the beginning of 2025 to the present. In particular, the South Australian coastal region increased the most at 5.8%.
Source: CoreLogic.2025.Australian dwelling values rose another 0.5% in May, taking the national index 1.7% higher over the first five months of the year.
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