Natalie Roberts

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This week’s Australian Property Market Update

Latest Data, State by State March 18th 2025

Key takeaways

  • The first interest rate cut in five years is a positive development for the housing market.

  • While the cut is small, its primary impact is psychological, helping to restore confidence, and early signs of improvement are already visible.

  • Canberra market data shows that total supply (sale) is at a three-month high and continues to rise annually, but the pace of growth has slowed compared to 2024. New listings are at the second highest on record for February.

This week, CoreLogic Research reports that:

  • Sydney property prices rose by 0.1% over the past week, increased 0.5% over the month, and are now 1.0% higher than a year ago.

  • Melbourne property prices remained unchanged last week, increased 0.4% over the month, but are still 3.2% lower than a year ago.

  • Brisbane property prices increased 0.1% over the last week, rose 0.2% over the past month, and are now 9.1% higher than 12 months ago.

  • Canberra house prices remained steady at $1.065 million over the December quarter, marking the first time in almost six years that prices have not moved over a quarter. This is the lowest price seen in a year and about $108,000 (9.2%) below the mid-2022 peak.

  • Auction clearance rates in Canberra have hit a six-month high, making it one of only two cities to rise over both the month and year.

  • Overall, Australian capital city dwelling prices rose 0.4% over the last month and are now 3.1% higher than a year ago.

  • Auction activity rebounded to 2,550 auctions last week, up from 1,572 the previous week, which was impacted by long weekends and natural disasters.

  • Auction clearance rates continued their gradual decline, sitting at 69.1% last week, down from 69.6% the previous week, and 3.0 percentage points below the February peak of 72.1%.

  • The market remains driven by strong demand and a limited supply of quality properties, keeping both prices and rents elevated, with no significant changes expected soon.

  • Experts agree that the housing shortage will persist, as current construction levels are unlikely to meet demand in the near future.

Market Demand & Supply:

  • New supply (sale) is at a four-month high but is lower annually. In February, new listings were at the second highest on record.

  • The supply of new rental properties decreased both over the month and annually, down 24.4% and 6.9% respectively.

  • The share of listings initially choosing auction as the method of sale is currently sitting at 29% for February, indicating a shift towards private treaty sales.

Buyer & Seller Activity:

  • Days on Market (DOM) for houses have risen for the second successive month and are at an eight-month high. However, for this time of the year, it is the lowest DOM since 2023.

  • Days on Market for units have risen for the third successive month and are at their highest since June 2021.

  • Canberra experienced a 20.5% spike in buyer demand in February as the market moves into the autumn selling season.

  • Conversely, rental demand decreased by 26.4% monthly and 20.7% annually, reflecting shifting trends in tenant preferences.

Natalie Roberts