Australia’s Housing Market shows signs of stabilising. Australian housing market values continued to see modest growth in June 2025 with national dwelling values up 0.6 per cent. That’s the fifth straight month that confidence has been on the rise, indicating a return of confidence, albeit at a more modest level.
Growth on a quarterly basis was also flat at 1.4 %, indicating a balanced, rather than overheated, market. The strong momentum, even though not at 2023 pace, is indicative that a sustainable rebound has taken fledgling shape.
Source : Property Update, July 2025
Growth rolls south, and Darwin trumped the record periods of growth and change, breaking records and tumbling into history.
Of the capital cities, Darwin was by far the strongest performer over the quarter with a 4.9 per cent increase, taking it above its 2014 mining boom high at last. Perth and Brisbane were close behind, with 2.1 % and 2.0 % growth over the quarter.
Source : SQM research
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Such cities of the triptych nature are key targets for strategic investors and continue to provide investors with a potent cocktail of capital growth and rental yields. As market momentum is gained, suburban areas in these regions are increasingly drawing interest from buyers, looking for return and cash flow potential.
Inventory Continues to Tighten Despite Growing Off-Market Activity
The national housing stock continues to be scarce, as just 16.7 per cent more homes were on the market than the five-year average. This shortage is also helping to prop up prices and has driven the value of off-market deals, especially in high-growth suburbs.
Renters Get Slight Reprieve, But Market is Still Tight
Tenants have enjoyed something of a reprieve, with rents up 1.3 % in the June quarter, the slowest second-quarter rise since 2020. However, affordability remains a concern. The typical renter now commits nearly one-third of their pre-tax income to housing.
Annual rental growth has moderated to 3.4 %, from a 2021 peak of 9.7 %. But with vacancy rates around 1.5 %, well-situated investment properties still yield enticing returns.
Source : Domain report
Clearance Rates and Confidence Improve
Clearance rates are tracking through the mid- to high-60s, a sign of strong buyer sentiment and of more balanced market conditions. While overall sales volumes remain slightly below the decade average, a mix of low interest rates, constrained supply, and the grubbing off of environmental cost-of-living pressure is supporting more transactions.
Outlook: Strategy and Timing Much More Important Than in the Past
Still, with affordability a growing issue and household debt levels still elevated, the housing market is unlikely to rebound with the same vigour as in past cycles. But the forecast is still bright, with slight but steady price increases anticipated for the remainder of 2025.
For buyers, it is a market in which smart timing and strategic thinking matter most. Growth suburbs in Perth, Brisbane and Darwin are continuing to see strong returns, and low listings are providing the perfect platform for off-market success.
It’s time to act now, before competition becomes more intense and affordability reaches an even broader stretch.
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