Australian House Prices Continue Upward Trend Across All Capital Cities in July
House prices continued to climb in July, with all capital cities reporting monthly increases and annual growth gaining further momentum.
According to the latest figures from My Housing Market, the national median house price for capital cities rose by 0.7% over the July quarter, reaching $1,208,603. This is up from the previous quarter.
This marks the fifth consecutive month of national house price growth, with annual values now 5.9% higher than a year ago.
All capital cities posted increases in July, with Darwin leading the monthly gains, up 3.7 per cent. Canberra followed with a 2.0 per cent rise, while Brisbane and Perth each recorded a 1.9 per cent increase. Hobart was up by 0.8 per cent, Sydney and Melbourne both rose by 0.3 per cent, and Adelaide recorded a modest rise of 0.1 per cent.
Over the past 12 months, the strongest performers have been Perth, up 11.2 per cent, Darwin at 10.6 per cent, Brisbane with 9.9 per cent, and Adelaide at 7.0 per cent. This reflects sustained upward pressure in several markets.
Unit Market Remains Positive
The apartment market also maintained its positive trajectory, with national unit prices rising for the sixth consecutive month. Median unit values increased by 0.4 per cent over the July quarter to $684,720, representing a 4.4 per cent increase compared to the same period in 2024.
Adelaide recorded the strongest monthly performance in the national unit market over July, with prices rising by 2.2 per cent. Canberra followed with an increase of 1.9 per cent, while Perth rose by 1.4 per cent. Melbourne recorded a 0.7 per cent rise, Sydney edged up by 0.2 per cent, and Brisbane remained steady.
In contrast, unit prices in Darwin and Hobart declined once again, falling by 1.5 per cent and 6.0 per cent respectively.
On an annual basis, Perth, Adelaide and Brisbane have reported the most significant growth in unit prices over the year to July 2025, rising by 14.5 per cent, 13.5 per cent and 13.3 per cent respectively.
Capital City Markets Continue to Strengthen
Housing markets across the capital cities continued to deliver positive results over the July quarter, building on gains reported in the previous June quarter. While monthly growth rates remain solid, they have moderated slightly compared to earlier periods.
The Reserve Bank of Australia’s interest rate cuts in February and May have clearly contributed to improved housing affordability, further boosting buyer and seller confidence in what was already a strong market.
House prices increased across all capital cities during July, with Perth and Brisbane again emerging as standout performers. Perth’s median house price has now surpassed $1 million and is rapidly closing in on Adelaide’s median.
In Melbourne, house price growth has continued to gather pace, with annual values now 2.9 per cent higher.
Unit prices also experienced a relatively positive month, although overall growth in this segment remained below that of houses. Melbourne continued its upward trend in 2025, with unit prices rising by 3.1 per cent to date — a result similar to Sydney.
Looking ahead, 2025 is expected to deliver continued positive momentum for capital city housing markets, underpinned by improved affordability and increased confidence driven by lower interest rates.
Brisbane, Adelaide and Perth are projected to lead price growth over the coming months, although at a more moderate pace compared to the strong gains seen in 2024.
Sydney is forecast to maintain solid to strong growth, while the Melbourne market is showing clear signs of a stronger year ahead, both for houses and units.
Key fundamentals are expected to continue supporting housing market activity, including the potential for further near-term interest rate cuts from the RBA. These would provide additional support to prices across the board.
Australia’s national economy remains robust, with unemployment rates staying low despite minor recent fluctuations. Consumer confidence is also reflected in solid retail sales, reinforcing continued market activity.
Although net overseas migration has eased slightly from post-COVID highs, the ongoing strong inflow continues to exacerbate the chronic undersupply of housing. This is placing upward pressure on rents and maintaining low vacancy rates across most capital cities.
Recent data also points to a tightening of rental vacancy rates and growing tenant demand, suggesting further rental increases are likely.
High rents and rising property prices are motivating both first home buyers and investors, with the pursuit of strong returns. Recent government initiatives aimed at supporting first home buyers are also expected to place further upward pressure on property prices.
Housing markets across Australia’s capital cities recorded consistent growth in both house and unit prices throughout 2023 and 2024. While the pace of increases has moderated slightly in July, the overall upward trend remains firmly in place.
Looking ahead, national home values are on track to post strong growth once again in 2025, comparable to the past two years, supported by low interest rates, a resilient economy and persistently low levels of new housing supply.
