Australian Home Values Hit Record Highs in April
Growth slows slightly, but momentum remains strong amid rate cut expectations
Australian home values reached new record highs in April 2025, with prices rising across every capital city. Although the pace of growth eased slightly compared to the first quarter of the year, market conditions remain positive, and with further interest rate cuts expected later this year, price growth may regain momentum.
Key Insights from April 2025:
- National median home price rose by 0.2% to $805,000, setting a new record.
- Regional markets led the way, with a combined monthly growth of 0.3%.
- All capital cities saw price increases, pushing capital city values to fresh peaks.
- Over the past 12 months, capital city prices are up 3.35%, while regional areas have grown 4.6%.
Capital City Performance
- Adelaide posted the highest growth in April (+0.3%) and leads all capitals year-on-year with a 10.8% increase, overtaking Perth.
- Melbourne and Canberra followed with +0.25% and +0.2% growth, respectively.
- Sydney, Perth, and Hobart each posted a +0.1% rise.
- Darwin gained 0.15% in April, with prices up 0.8% year-on-year.
- Despite a strong April, Melbourne remains the only capital where prices are down annually (-1.7%).
Brisbane continued its strong run, with home prices rising 0.2% to $882,000, maintaining its position as Australia’s second most expensive capital city after Sydney. Compared to a year ago, Brisbane prices are 8.7% higher, outpacing Melbourne by over $100,000.
Meanwhile, Sydney home prices climbed 0.1% to $1,118,000, marking a new record, though annual growth remains modest at 2.5%.
Regional Markets Outperform
April’s top performers were regional Queensland and South Australia, with monthly growth of 0.5%. Regional Queensland also dominates the list of the strongest-performing regions over the past year, with four of the top five spots. These regions are typically more affordable, but rising prices are beginning to challenge this advantage.
Units Gaining Ground
- The national median house price increased 0.2% to $883,000, while unit prices remained steady at $659,000.
- However, units outpaced houses year-on-year, up 3.9% vs 3.7%.
- This trend is most visible in the regions, where unit values rose 5.3%, compared to 4.5% for houses.
Affordability constraints are pushing more buyers toward units, which offer a lower price entry point amid rising housing costs. This shift in buyer behavior is likely to support continued unit price growth.
Local Highlights
- Adelaide hit a record $804,000 median home price.
- Perth home values edged up 0.1% to a record $779,000, driven by strong population growth and investor demand.
- Canberra prices grew 0.2% to $852,000, although still 4.5% below the 2022 peak.
- Hobart saw relatively subdued growth, with prices rising just 0.1% in April and 2.1% over the year.
What’s Driving the Market?
- February’s rate cut and the prospect of more to come are lifting buyer sentiment.
- The Westpac-Melbourne Institute’s ‘Time to Buy a Dwelling’ index is up 13.8% year-on-year, indicating improving consumer confidence despite recent geopolitical uncertainties like the new U.S. tariffs.
Outlook for the Remainder of 2025
Interest rates remain the biggest driver to watch. While cuts were already anticipated this year, growing concerns around the global economy, especially from U.S. tariff impacts, have increased expectations for further rate reductions. This could further fuel demand and lift home prices through the second half of 2025.
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