For the first time in four years, house prices have risen simultaneously across all of Australia's eight state and territory capital cities, according to the latest data from property portal Domain. The June quarter figures show that price growth accelerated in Sydney and Melbourne, while smaller capitals continued to gain momentum.
The Reserve Bank's two interest rate cuts in 2025 have boosted borrowing capacity, fuelling a wave of buying. Domain's chief of research and economics, Nicola Powell, noted that regardless of the city or property type, prices are rising. More than 1,700 suburbs saw house values increase year-on-year, with suburban Perth recording some of the largest jumps.
Clearance rates at auctions have approached 70%, according to data from Cotality. However, buying momentum has eased in overheated markets such as Brisbane and Adelaide, where median prices have surpassed A$1 million. Professor Chyi Lin Lee from the University of New South Wales observed that apartment prices are catching up with house prices as buyers seek more affordable options.
Rental costs have also seen significant increases, with Cotality data showing rents have jumped more than 40% since 2020. However, annual rent growth has slowed to 3.4% in the year to June, the weakest increase since 2021. Analysts expect further price rises as the Reserve Bank is predicted to cut rates again in August, though a boom is not forecast due to affordability constraints.
