NAB Australian Housing Market Update: August 2025

Welcome to Cotality’s housing market update for August 2025.

By NAB Group Economics

Our national home value index notched up a sixth consecutive month of growth in July, following a slight dip in values at the end of last year. After a positive turn in February, which aligned with the first rate cut, the monthly pace of growth has held at 0.6% since May as the opposing influences of low supply, falling interest rates and rising confidence run up against affordability constraints and lingering uncertainty.

Every capital city recorded a rise in dwelling values through the month, led by Darwin with a solid 2.2% rise, followed by Perth, up 0.9%. At the softer end of the growth tables are Hobart, Melbourne, and the ACT.

The positive trend in housing values is supported by persistently low inventory levels, with national listings tracking -20% below the previous five-year average for this time of the year. At the same time, Cotality’s estimate of annual sales is tracking about 1.9% above the previous five-year average.

The imbalance between available supply and demonstrated demand has supported auction clearance rates, which have been tracking slightly above the decade average since mid-May.

Although the monthly growth trend looks to have found a sweet spot, the rolling quarterly change shows a clear upswing since February’s rate cut. The 1.8% rise in the national index over the three months ending July was the strongest outcome since the three months ending June last year.

The rate of growth in house values is once again outpacing gains across the unit sector. The past three months have seen national house values rise by 1.9%, adding approximately $16,700 to the median value. In comparison, unit values are up a smaller 1.4% or roughly $9,700 on the median value.

With house values once again outpacing units, the difference between the national median house and unit value is at a record high. In July, nationally, there was a 32.3% difference between the median value of the two broad housing types, or approximately $223,000 in dollar terms.