As we head into June 2025 and reach the mid-year mark, national home prices have recorded a strong rise since the Reserve Bank’s rate cut in February. Price momentum has not only picked up again but also become more widespread, with all capital cities seeing values increase.
Annual price gains across the country are now slightly above 4%, with capital cities at the forefront. The broader upward trend suggests a more unified growth pattern nationwide, with the regional disparities of 2024 starting to fade.
Core Observation:
National home prices reached a new high, rising 0.39% for the month and marking five consecutive months of growth. Over the years, prices have increased by 4.12%. Capital cities led the monthly gains, with all capitals recording increases. Melbourne posted the strongest monthly rise at 0.79%, continuing its recovery, although values there remain 2.85% below their peak.
A key milestone was Perth overtaking Melbourne’s median home value for the first time in a decade, reflecting Melbourne’s slower growth and Perth’s strong, affordability-driven demand. On an annual basis, Adelaide recorded the highest growth among the capitals at 11.04%, closely followed by Perth and Brisbane.
Regional markets also performed strongly, rising 0.25% and 5.19% over the year, outpacing the combined capital city growth of 3.71%. Regional prices are now 65% higher than five years ago. Overall, the market is showing broader and more consistent growth across the country as 2025 progresses.
Adelaide Property Market Overview – Steady Growth Continues
Adelaide’s property market is continuing its upward trajectory, with dwelling values rising by 0.5% over the past month to reach a median of $805,000. Houses remain in strong demand, recording a monthly growth of 0.6% and pushing the median house price to $861,000.
While growth in the unit market was more modest at 0.1%, units still offer a more affordable entry point with a median price of $612,000. This steady performance reflects ongoing interest in Adelaide’s property market, supported by relative affordability compared to other capitals and a strong local economy.
As we move further into 2025, Adelaide’s balanced growth across housing types points to a resilient market with appeal for both homebuyers and investors.
What to Expect
Interest rate cuts have boosted borrowing capacity and fueled buyer demand. With further cuts on the horizon, more buyers are re-entering the market and speeding up their purchasing timelines.
While affordability remains a hurdle, low housing supply, population growth, and government incentives are expected to keep prices under pressure. Combined with falling interest rates, these factors are likely to drive continued price growth throughout the rest of 2025.
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Source: https://www.realestate.com.au/insights/proptrack-home-price-index-may-2025/
