Welcome to the Property Planner’s Monthly Market Update, your comprehensive resource for the latest insights and trends in the real estate and economic landscape!
Stay informed and ahead of the curve with our expert analysis, helping you make well-informed decisions in the ever-evolving property market.
2025: Stronger Than Anyone Expected
National dwelling values rose 8.6% in 2025, comfortably outperforming 2024’s 4.9% result and making it the strongest year since the COVID-fuelled boom of 2021.
Source: Cotality
Lower-Priced Properties did the Heavy Lifting
Affordability constraints hit prestige homes hardest, while first home buyer incentives pulled demand to the more accessible end of the spectrum.
Source: Cotality
Darwin Takes the Crown
Darwin was the standout winner of 2025, delivering 18.9% growth for the year after nearly a decade long slump.
The city finished the year with strong momentum, including a 1.6% rise in December alone, cementing its status as the success story of the year.
Source: Cotality
The Mid-Size Capitals Just Won’t Slow Down
Perth led the charge with standout annual growth of 15.9%, followed closely by Brisbane 14.5%, while Adelaide continued its quiet but persistent outperformance, posting 8.8% for the year.
These markets have now strung together multiple strong years, prompting the obvious question: how long can this run last?
Source: Cotality
Green Shoots in Hobart
Hobart made a quiet but meaningful move in December, rising 0.9% and giving weight to the idea that the market may have finally found its floor.
After years in the doldrums, early momentum is building.
Source: Cotality
Regions Run Faster Than Capitals
Regional Australia once again outpaced the capitals in 2025, recording 9.7% annual growth compared with 8.2% across the capital cities.
Lifestyle shifts, affordability pressures and chronic undersupply all played a role.
While not every regional market performed equally, the broader trend remained intact.
Source: Cotality
Rents Still Rising, Just Less Wild
Rents increased 5.2% nationally in 2025, slightly faster than the 4.8% rise in the year before.
While that pace is slower than the explosive rises seen earlier in the decade, it remains historically high when viewed over a longer horizon.
The past five years have seen rents grow at an average annual rate of 7.4%, compared with just 1.2% in the five years prior.
Source: Cotality
The Reason Prices Keep Rising
Listings continue to tell the real story.
Total listings ended the year roughly 20% below the five-year average and although new listings lifted 1.1% year-on-year, they were still 5% below the five-year average.
With dwelling sales up 4.9%, demand continues to outpace supply, keeping upward pressure on prices.
Source: Cotality
What’s Next for Interest Rates?
Inflation has edged lower, with trimmed mean inflation now sitting at 3.2%, a step in the right direction but still above the RBA’s target band of 2-3%.
For now, rate cuts in 2026 look off the table, with economists split between an extended pause and the possibility of hikes later in the year.
Source: ABS
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