National Home Prices Hit Record $880,000
Australia’s property market rebounded strongly in 2025 following three consecutive RBA rate cuts that restored buyer confidence after two years of rate-driven correction.
The Rate Cut Sequence
The RBA reduced the official cash rate three times in 2025:
- February 2025: 4.35% → 4.10%
- May 2025: 4.10% → 3.85%
- August 2025: 3.85% → 3.60%
Each cut improved borrowing capacity and reignited competition across east-coast capitals.
Market Response
Cotality’s Home Value Index recorded an 8.6% rise for the full calendar year 2025 — the strongest annual gain since 2021. PropTrack confirmed the national median home price reached a record $880,000 in December 2025, up 8.8% year-on-year.
Auction clearance rates hit a 12-month high of 74.7% in July 2025. Melbourne and Sydney recorded their fastest quarterly price rises in 2 and 3.5 years respectively in the June quarter.
Who Led Growth
- Perth: +17.9% annually to December 2025 — strongest of any capital
- Brisbane: continued strong momentum, median approaching $1M
- Adelaide: joined the million-dollar club (see next article)
- Sydney & Melbourne: strong mid-year rebound, softer finish
Investor Surge
Investor lending rose more than 20% nationally in 2025, concentrated in Brisbane, Adelaide, and Perth where gross yields remained attractive relative to the cost of finance.
