Written by Lily Chong, Head of IQI Australia
AUSTRALIA’S HOUSING MARKET REMAINS RESILIENT AMID SOFTENING GROWTH
Australia’s housing market continued its upward trajectory in April, with CoreLogic’s Home Value Index marking a third consecutive month of growth. National dwelling values rose by 0.3%, pushing the median home price to a new record high—adding approximately $2,720 in value over the month.
Every capital city posted value gains, with Darwin leading at +1.1%. Sydney and Melbourne saw more modest increases of 0.2%. However, April’s growth eased slightly from March’s 0.4%, reflecting subdued buyer sentiment and a dip in auction clearance rates.
Tim Lawless, CoreLogic’s research director, noted that the February rate cut initially stimulated housing momentum, but its effects are beginning to fade. Broader economic uncertainty—partly driven by international trade tensions and the upcoming federal election—has weighed on consumer confidence, prompting some buyers and sellers to delay their plans.
This cooling trend was evident in reduced market activity. Auction volumes dropped to just 644 for the week ending April 20—the quietest Easter auction week since 2019. New listings also declined to 19,650 across the capital cities in the four weeks to April 27, marking a five-year low for this time of year.
Looking ahead, market momentum could resume with a potential interest rate cut expected around May 20 and post-election clarity. CoreLogic forecasts modest price growth for the remainder of 2025.
Despite the overall gains, not all cities have reached new price peaks. Only mid-sized capitals like Brisbane, Adelaide, and Perth have hit record highs. Sydney remains 1.1% below its September 2024 peak, while Melbourne lags 5.4% behind its 2022 high. Hobart, Darwin, and the ACT are still down 11.1%, 2.7%, and 6.4%, respectively.
Annual price growth slowed to 3.2% in April—its lowest level since August 2023—underscoring the market’s cooling from mid-2024 to early 2025, despite a rebound beginning in February.
House values continue to outperform units. Over the past three months, house prices rose by 1.1% across the combined capitals, compared to 0.5% for units. Sydney showed the widest disparity, with house values rising 1.4% while unit values slipped 0.3%. Hobart followed a similar trend. Meanwhile, Melbourne and Adelaide recorded balanced growth, and Perth and Brisbane saw stronger unit price gains.
