Key takeaways
Cotality estimates the mixed worth of residential actual property rose to $11.4 trillion on the finish of Might.
The rolling quarterly development for nationwide dwelling values got here in at 1.3% over the three months to Might.
The three.3% development within the yr to Might exhibits a continuation of easing and is the the bottom annual enhance because the 12 months to August 2023.
Throughout the capitals, Darwin continued to steer the tempo of quarterly development, with dwelling values up 4.3% over the three months to Might. Adopted by Perth and Brisbane tied for second, with values rising 1.6%.
The annual change in housing values has continued to favour regional Australia, with regional WA (+12.5%) and regional SA (+12.4%) main the tempo of annual positive aspects.
Cotality estimates 43,903 gross sales occurred nationally in Might, taking the rolling 12-month depend to 526,530.
The nationwide median time on market rose to 34 days over the three months to Might after briefly dipping to 30 days over the three months to April.
The median vendor discounting charge got here in at 3.4% over the three months to Might, down from the current excessive of three.7% recorded within the three months to January.
The circulation of newly marketed inventory rebounded in Might, with 35,069 properties listed on the market nationally over the 4 weeks to 1 June 2025.
Rental development continued to reasonable in Might, with nationwide dwelling rents up 0.4% over the month.
Wish to know what’s taking place to the housing markets round Australia?
Nicely… this month-to-month assortment of charts from Cotality (previously CoreLogic) paints an attention-grabbing image.
After shifting by means of probably the most various situations since 2007, development charges throughout Australia’s capital cities have tightened to the narrowest vary in over 4 years, in accordance with Cotality’s newest knowledge.
The information highlights how annual dwelling worth development is converging throughout the capital cities amid altering market situations.
In Might, the distinction between the best and lowest annual development charges was simply 9.8 share factors, the narrowest hole since March 2021.
It was solely August final yr, the hole between the best and lowest performing capitals was at its widest since 2007(through the peak of the mining growth and simply previous to the World Monetary Disaster (GFC), with a variety of 26.1 share factors.
Cotality Analysis Director Tim Lawless famous this convergence has occurred quickly and indicators a altering dynamic in Australia’s housing market.
He additional mentioned:
“The convergence of development charges is attributable to the tempo of capital positive aspects slowing throughout the mid-sized capitals whereas beforehand tender markets like Melbourne, ACT and Hobart transfer again right into a optimistic development place.
Development throughout Perth, Adelaide and Brisbane have slowed amid worsening affordability constraints, diminished interstate migration, and a drop in funding demand.
Though regardless of the slowdown, Perth and Adelaide proceed to put up the strongest annual positive aspects at 8.6%, although nicely under their cyclical peaks of over 25%.”
Conversely, Mr Lawless mentioned softer markets are displaying indicators of restoration, supported by falling rates of interest and housing turning into extra inexpensive as costs have diminished:
“For Sydney, house values have bounced again from a 12.4% decline in early 2023 to optimistic development by July 2023, peaking at 12.3% annual development in January 2024, however since then, development has slowed to its lowest charge (1.1%) since June 2023.
Melbourne’s annual charge of decline has eased from -7.8% in January 2023 to -1.2% over the previous yr, with values steadily rising since February.
Hobart’s charge of decline has turned optimistic, with values up 1.0% over the previous 12 months following a peak charge of annual decline of -11.8% in March 2023.
For now, capital metropolis housing markets are shifting extra in step than they’ve in years.”
Residential actual property underpins Australia’s wealth
- The overall worth of Australian residential actual property was $11.4 trillion on the finish of Might 2025
- Excellent mortgages in opposition to all residential housing are solely $2.4 trillion – a really snug 21% Mortgage to Worth ratio.
- 55.3% of whole Aussie family wealth is held in residential property – one of many many causes neither the banks, the federal government nor the RBA desires a property crash.
Australian dwelling values
- The rolling quarterly development for nationwide dwelling values got here in at 1.3% over the three months to Might, in keeping with the revised 1.3% rise seen over the three months to April.
- Regardless of the regular quarterly development, rolling annual worth development has continued to ease, with values up 3.3% within the yr to Might, the bottom annual enhance because the 12 months to August 2023 (2.6%).
- Nationwide housing values have risen 42.8% over the previous 5 years, including an equal of roughly $250,000 to the nationwide median dwelling worth.
- Outcomes range throughout areas, from the 85.8% rise in regional WA values to a 12.8% carry throughout Melbourne.
- Nevertheless, our property markets are fragmented that means whereas many segments are rising, some are languishing.
- And, after all, as a property investor you possibly can at all times outperform the typical.
Our capital metropolis markets are fragmented
Our housing markets are fragmented with every state performing otherwise relying on native financial and market components.
Initially of this property cycle the higher quartile of the market lead the upswing in 2023, however extra just lately the decrease quartile throughout each capital metropolis has recorded a stronger end result for housing values relative to its higher quartile counterpart.
The next chart exhibits how numerous segments of every capital metropolis market are performing otherwise, with median-priced properties performing nicely.
Every State is working its personal race
- On the one hand, Perth property values are up 8.6% over the yr and are at the moment at a brand new report excessive.
- Alternatively, though Melbourne property values, are up 0.4% during the last month, they nonetheless fell -1.2% during the last yr, and are actually -4.5% under the report excessive, which was in March 2022.
- And within the earlier darling of the housing markets, Hobart, home costs are -10.5 % under their report highs recorded in March 2022.
One other star performer was Brisbane the place property values elevated 7.1% during the last yr and are at the moment at a report excessive.
Sydney property values underperformed over the previous yr (+1.1%) and are actually -0.3% under the report excessive which was September 2024.
This is how the Adelaide property market carried out.
The Canberra housing market languished final yr.
Equally, the Darwin housing market underperformed within the final yr.
This is what number of properties are on the market for the time being
- The circulation of newly marketed inventory rebounded in Might, with 35,069 properties listed on the market nationally over the 4 weeks to June 1st.
- Whereas down -7.0% in comparison with this time final yr and -1.9% under the earlier five-year common, the four-week depend on new listings is up 11.1% from the current low recorded over the 28 days to April twenty seventh, when consecutive lengthy weekends together with tariff uncertainty impacted itemizing exercise.
- The issue is that only a few are A Grade properties or funding grade properties. House owners of high quality properties are holding onto them.
- Regardless of the uptick in new listings, whole itemizing ranges have continued to ease, with 133,725 listings noticed nationally over the 4 weeks to June 1st studying is the bottom nationwide depend for this time of yr since 2007, when roughly 115,000 properties have been marketed on the market.
Transaction volumes
- Cotality estimates 43,903 gross sales occurred nationally in Might, taking the rolling 12-month depend to 526,530.
- Whereas month-to-month exercise got here in -1.1% under the five-year common, annual gross sales exercise has been extra resilient.
- Over the 12 months to Might, gross sales estimates are up 2.3% from the yr prior and a couple of.7% above the earlier 5-year common.
It is taking longer to promote a house
- The nationwide median time on market rose to 34 days over the three months to Might after briefly dipping to 30 days over the three months to April.
- In comparison with this time final yr, properties are taking longer to promote throughout all capitals besides Darwin (41 days) and Canberra (49 days), with the median days on market lowering by 12 and two days, respectively.
Vendor Discounting
- Nationally, sellers are providing smaller reductions in an effort to safe a sale, with the median vendor discounting charge coming in at 3.4% over the three months to Might, down from the current excessive of three.7% recorded within the three months to January.
- This discount was largely pushed by the mixed capitals, with the median low cost down 30 foundation factors to three.2%, whereas distributors throughout the mixed areas (3.7%) have seen a extra modest decline of 10 foundation factors over the identical interval.
Public sale clearance charges confirmed renewed exuberance over the month
- Public sale clearance charges confirmed renewed exuberance over the month, with the mixed capitals’ clearance charge
averaging 65.3% over the 4 weeks ending June 1st, up from 60.4% over the 4 weeks ending Might 4th. - Brisbane noticed the strongest turnaround in public sale success charges, with the 59.1% common recorded on the finish of June, up 9.3 share factors from the earlier four-week common, whereas the bigger public sale capitals of Melbourne (67.5%) and Sydney (64.3%) noticed milder will increase of 5.4 and three.2 share factors, respectively.
- We replace the weekly public sale clearance outcomes right here every week.
We’re nonetheless experiencing a rental market disaster in Australia
- Rental development continued to reasonable in Might, with nationwide dwelling rents up 0.4% over the month, taking the 12-month development to three.4%, lower than half the 8.1% annual rise recorded this time final yr.
- Melbourne (1.5%) and Sydney (1.8%) noticed a few of the sharpest slowdowns in annual rental development in comparison with final yr, with each markets now recording yearly will increase under their pre-COVID decade common.
- Nationwide gross hire yields remained regular at 3.7% in Might, with rental yields throughout the mixed capitals and mixed regionals are additionally holding agency at 3.5% and 4.4%, respectively.
- An analogous development was seen throughout the capitals and the remainder of the state areas, with yields throughout most markets in keeping with their respective April end result.
- The exceptions have been Regional NSW (4.1%), Regional NT (7.7%), the place yields fell 10 foundation factors, and Regional Tasmania (4.6%), with yields up 10 foundation factors over the month.
Dwelling approvals and housing credit score
- Dwelling approvals plunged -5.7% in April, as a result of a considerable -18.9% dip within the risky unit phase, offsetting the three.3% enhance in home approvals.
- Throughout the states and territories, SA (4.6%), WA (20.3%), Tasmania (5.4%) and NT (1.8%) all noticed a month-to-month uptick in approvals.
- Nevertheless, WA and SA have been the one states to report approval ranges above the last decade common, up 23.2% and 33.7%, respectively.
Finance and Lending
- The quantity and worth of latest house mortgage commitments fell within the March quarter, down -3.5% and -1.6%, respectively.
- Each owner-occupiers (-3.4%) and buyers (-3.4%) drove the decline in quarterly mortgage volumes, whereas a extra
substantial fall within the worth of mortgage commitments was seen in owner-occupiers lending (-2.5%), in contrast with
buyers (-0.3%).
- The worth of first house purchaser financing fell -3.4% over the March quarter, pushed by declines in SA (-6.1%), QLD (-2.1%) and WA (-0.9%).
- As a portion of latest owner-occupier lending, first house patrons lending trended decrease, comprising 29.0% in Q1, the bottom portion because the three months to December 2022 (27.6%).
- Regardless of this, most states are nonetheless seeing first-home patrons as a portion of owner-occupier lending above historic decade averages.
Supply of charts: CoreLogic Chart Pack, June 2025.
