November 2025 – Housing Market Update 1. Housing Market GrowthThe pace of growth in Australian home values accelerated in October 2025, with a 1.1% gain—the fastest since June 2023—pushing annual growth to 6.1% nationally. Every capital city and regional area recorded increases, ranging from 1.9% in Perth to 0.3% in Hobart. In the combined capitals, this gain added just over $10,000 to the median dwelling value for the month. Since February, capital city dwelling values are up 5.9%, or approximately $53,700. Rising values reflect supply falling short of demand.  2. Sales, Supply, and Market SegmentsAt the national level, home sales are 3.1% above the five-year average, while advertised supply is 18% below average. Auction clearance rates remain strong, holding above the decade average. The expanded 5% deposit guarantee scheme has supported demand, particularly in the middle and lower market segments, which saw increases of 1.4% and 1.2% respectively, while upper quartile values rose 0.7%. 3. Regional Markets and RentalsRegional markets posted solid monthly growth, with regional WA up 1.8%, regional Queensland 1.1%, and regional NSW 1%. Vacancy rates remain around record lows of 1.5%, pushing rental growth higher. National rental values increased 0.5% per month over the past three months—the fastest since May 2024. However, rising housing values have put downward pressure on gross rental yields, now at 3.40% the lowest since October 2022. 4. Capital City HighlightsDarwin led total returns at 23.1% over the past year, supported by strong value growth and high gross yields, aided by a doubling of investment housing loans. Brisbane recorded one of the highest rates of capital gain in October, with values up 1.8%, adding about $4,000 weekly to the median dwelling value. Units led the rise at 1.9%, while houses rose 1.8%. Record-low housing stock continues to support upward price pressure, with listings 19% lower than last year and 31% below the five-year average. 5. Consumer SentimentDespite strong growth, risks remain: affordability is stretched, immediate supply is at record lows, and new housing construction lags the decade average. Rising construction costs, potential tightening of investor credit, and a possible end to rate cuts may limit future demand. However, housing demand has shown remarkable resilience, supported by historically low vacancy rates, strong rental growth, and continued interest from first home buyers and investors. While challenges exist, the fundamentals of the market remain robust, suggesting that long-term opportunities for homeowners and investors continue to be positive. Disclaimer:The information presented in this email is for general informational purposes only and should not be considered as professional advice. While we strive to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability concerning the content contained within this email. Any reliance you place on the information provided is strictly at your own risk.Source: from Corelogic, REA Group, JP Morgan, Homefront, CNN, CommSec, and Reserve bank of Australia |
