Property Update - June 2025

Monthly highlights
 

• The rolling quarterly trend for national dwelling values came in at 1.3% over the three months to May, in line with the revised 1.3% rise seen over the three months to April. 

• The combined capitals are once again seeing dwelling values rise faster than the combined regions, with growth trends recovering in Sydney, Melbourne and Perth, while some momentum leaves the regional markets. 

• The combined capitals are once again seeing dwelling values rise faster than the combined regions, with growth trends recovering in Sydney, Melbourne and Perth, while some momentum leaves the regional markets. 

• Nationally, sellers are offering smaller discounts in order to secure a sale, with the median vendor discounting rate coming in at 3.4% over the three months to May down from the recent high of 3.7% recorded in the three months to January. This reduction was largely driven by the combined capitals, with the median discount down 30 basis points to 3.2%, while vendors across the combined regions (3.7%) have seen a more modest decline of 10 basis points over the same period. 

• Despite the uptick in new listings, total listing levels have continued to ease, with 133,725 listings observed nationally over the four weeks to June 1st. Down -2.1% from last year and -13.2% below the previous 5-year average, the June 1st reading is the lowest national count for this time of year since 2007, when approximately 115,000 properties were advertised for sale.

• Rental growth continued to moderate in May, with national dwelling rents up 0.4% over the month, taking the 12-month trend to 3.4% less than half the 8.1% annual rise recorded this time last year. Melbourne (1.5%) and Sydney (1.8%) saw some of the sharpest slowdowns in annual rental growth compared to last year, with both markets now recording yearly increases below their pre-COVID decade average.

• Dwelling approvals plunged -5.7% in April, due to a substantial -18.9% dip in the volatile unit segment, offsetting the 3.3% increase in house approvals. Across the states and territories, SA (4.6%), WA (20.3%), Tasmania (5.4%) and NT (1.8%) all saw a monthly uptick in approvals. However, WA and SA were the only states to record approval levels above the decade average, up 23.2% and 33.7%, respectively.

• In March, the average variable rates for new owner-occupiers and investors loans came in at 6.00% and 6.22%, down 25 and 24 basis point respectively since January. With the RBA cutting rates by 25 basis points in May, average variable rates are expected to ease further in the coming months.

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