Insights

Insights

Australian home values were up 0.4% in March, reversing a recent downward trend and returning to record-highs.

Source: Corelogic 2025

Highlights

• The positive movement in growth was reflected in values across most capitals, except for Hobart (-0.4%). However, the pace of gains has noticeably slowed in Perth (0.2%).

• Largest capitals Sydney (0.3%) and Melbourne (0.5%) have turned a positive corner, with values rising over the past two months.  

• The change in values across the different ‘price points’ has started to converge after lower priced properties led the pace of growth over the past 18 months.

• Regional housing markets (0.5%) value growth continued to outpace the combined capitals (0.4%) in March, but growth is converging as capital city gains accelerate.

• Rent values are also at record-highs, with the national rental index rising 0.6% in March.

• Gross rental yields (3.53%) are now at their highest level since 2019.

• While easing monetary policy, cost of living relief, income growth, and improved sentiment may support housing activity – headwinds like a drawn-out rate cutting cycle, unaffordability, slower population growth, and cautious credit policies are likely to keep value growth contained.

CoreLogic’s research director, Tim Lawless, said the improved housing conditions have more to do with improved sentiment than any immediate improvement in borrowing capacity. 

“Expectations of lower interest rates, which solidified in February, look to be flowing through to improved buyer sentiment.

“Along with the modest rise in values, we have also seen an improvement in auction clearance rates, which have risen back to around long-run average levels across the major auction markets.”

Regional housing conditions continued to show a stronger growth trend relative to the capital city counterparts in February, with values across the combined regionals index rising 0.4% over the month and 1.0% over the rolling quarter - compared to the 0.3% monthly rise and -0.4% quarterly fall seen in capital city values.

However, there has been some diversity in these trends, with the monthly change favouring Sydney, Melbourne and Hobart over their regional counterparts.

Improved market conditions may also be supported by a slowdown in the flow of freshly advertised ‘for sale’ listings. Counts of new listings coming to market across the combined capitals were tracking -4.7% lower than a year ago over the four weeks to February 23, and -1.5% below the previous five-year average.

“Although total advertised supply levels are almost 1% higher than a year ago, listings remain -7.9% below the previous five-year average and the reduced flow of fresh stock to market could be supporting some upward pressure on prices, especially if buyers are becoming more active amid higher sentiment and lower rates,” Mr Lawless said.