Australian property prices are accelerating again, rising by 1.4% nationally in the June quarter, according to Cotality data. The increase is nearly double the pace of wages growth, deepening affordability challenges for prospective buyers.
Every state capital city recorded gains, with Sydney prices up 1.9% in the first half of 2025. Melbourne rose 1.8%, while Darwin led with a 7.7% surge. Perth and Brisbane saw rises of 2.1% and 3.2% respectively.
Cotality research director Tim Lawless said Reserve Bank rate cuts were a 'clear catalyst' for the momentum. The cash rate has fallen from 4.35% to 3.85% this year, with further cuts expected. Auction clearance rates have strengthened, with Sydney auctioneer Clarence White noting 'more confidence and gusto' from bidders.
Supply constraints are exacerbating price pressures. The Property Council of Australia warned the nation is 262,000 homes behind the government's 1.2 million home target by 2029. Chief executive Mike Zorbas said the target is driving supply-side thinking, but new builds remain below desired levels.
