Australia’s property market is showing signs of renewed strength, with national dwelling values rising 0.4% in March 2025. This marks the second straight month of growth, following a period of slight decline. The median house price across capital cities now sits at $1,014,019, while the median unit price is $688,158. Regional markets are also performing steadily, with a median dwelling value of $586,483.

The recent upswing appears to be driven by improving buyer sentiment following the Reserve Bank’s interest rate cut in February. Gains have been widespread across cities, with Sydney and Melbourne seeing values rise for two consecutive months. In Sydney, upper-end properties are leading the growth, while Melbourne is beginning to recover from its earlier downturn, though values remain 5.6% below their March 2022 peak.

Brisbane and Adelaide continue to show consistent growth, supporting the national trend. Perth, while experiencing a minor recent dip, remains the standout performer over the longer term, with house values up more than 75% since March 2020. Markets like Hobart, Darwin, and Canberra are showing mixed results, ranging from stability to modest gains.

Overall, the property market recovery appears to be broadening, with price increases now more consistent across value segments and cities. The return of confidence, combined with low housing supply and a stable interest rate outlook, is likely to support further growth in the coming months.

It is widely predicted that the RBA will cut interest rates at its meeting on May 20. Contact us if you are considering purchasing a property and would like to understand your borrowing capacity, or if you want to review your current home loan.