Written by Lily Chong, Head of IQI Australia
The start of the year saw national dwelling values remain steady, with only a slight dip of 0.03% in January. While capital cities experienced a collective 0.2% decline, regional areas continued to grow, reaching new record highs with a 0.4% increase.
Among the capital cities, Melbourne led the declines with a 0.6% drop, followed by the ACT (-0.5%) and Sydney (-0.4%). In contrast, Brisbane and Perth maintained growth, though at a slower pace, particularly in the detached housing market. Perth’s quarterly growth rate eased from 7.1% in June 2024 to just 1.0% in the three months to January. Meanwhile, Adelaide remained resilient, leading capital city growth over the past six months with a 4.8% increase.
On an annual scale, national home value growth slowed significantly, dropping from a 9.7% peak in February 2024 to 4.3% in January. Melbourne (-3.3%), the ACT (-0.5%), and Hobart (-0.4%) recorded yearly declines, while Sydney posted a modest 1.7% gain—the lowest since June 2023. Regional Victoria was the only broad regional area to see a decline over the past year (-2.6%) .
Perth Property Market Snapshot
Perth’s housing market remains strong, with the median house sale price rising by 1.4% in January to $750,000—an impressive 23% increase year-on-year. Units also saw positive movement, with the median price increasing by 1.0% to $500,000, reflecting a 20.5% annual rise.
According to REIWA CEO Cath Hart, property prices are still on an upward trajectory but at a more measured pace compared to 2024. She noted that while some buyers are taking their time with purchasing decisions, well-presented homes in desirable locations continue to attract strong interest and sell quickly. Sellers are encouraged to set realistic prices and focus on presentation to maximize their chances in the current market.
Perth Rental Market Trends
Rental prices in Perth also increased, with the median dwelling rent rising 3.1% in January to $670 per week—up 8.9% from a year ago. House rents increased by 1.5% to $680 per week, marking a 6.3% annual rise, while unit rents remained steady at $650 per week, up 12.1% year-on-year.
Ms. Hart highlighted that while monthly rent prices continue to fluctuate, the significant slowdown in annual growth rates suggests a more moderate rental market compared to last year. A year ago, annual rental growth was 18.3% for dwellings, 16.4% for houses, and 20.8% for units.