NAB Australian Housing Market Update: July 2025

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

By Keegan Nash

Australian housing values rose another 0.6% in June, marking a fifth straight month of growth since conditions flattened out through the end of last year. Demonstrating the broad-based nature of the upswing, monthly gains were recorded across almost every broad region of Australia, with Hobart the only region to see a month-on-month fall.

The first rate cut in February was a clear turning point for housing value trends. An additional cut in May, and growing certainty of more cuts later in the year have fuelled housing sentiment, helping to push values higher.

Although value rises have been broad-based, the quarterly pace of growth, at 1.4% remains mild compared to mid-2023 when the national index was rising at the quarterly rate of 3.3%. Current growth levels could be described as tepid compared with the extreme 8.1% quarterly rate of growth recorded through the height of the pandemic.

Across the individual capitals, quarterly growth was led by Darwin, with dwelling values jumping 4.9%, enough to take dwelling values to a new record high, finally surpassing the mining boom peak recorded just over 11 years ago in May 2014.

Outside of Darwin, the quarterly trend across the capitals was led by Perth and Brisbane, the same markets which have led the five-year growth trend, with values up 81% and 75% respectively since June 2020.

Although the quarterly pace of growth still favours regional Australia, at 1.6%, compared with the combined capitals at 1.4%, it is looking increasingly likely that the quarterly growth trend will once again favour capital city markets over the coming months. In fact, the last two months have seen the combined capitals record a slightly higher rate of capital gain than regional markets.

The housing rebound is occurring against a backdrop of relatively low home sales, with turnover through the first half of the year tracking at an annualised pace of 4.9%, slightly below the decade-average of 5.1%.