Property Update - September 2025

Monthly highlights
 

• Momentum in national housing values has continued to build with dwelling values up 1.8% over the three month to August, the largest quarterly increase since Q2 2024 (2.0%).

• The rolling 28-day change in the Cotality combined capitals daily Home Value Index has continued to gain momentum, with values up 0.8% over the four weeks to September 9th.

• Cotality estimates 43,436 sales occurred nationally in August, taking the rolling 12-month count to 538,329 — 2.0% higher than this time last year and 3.8% above the previous five-year average. Darwin remains the standout performer, with annual sales estimates almost 70% above the average, followed by regional WA (14.0%), Melbourne (13.5%) and regional Victoria (11.5%). 

• Despite freshly advertised stock shifting higher, total stock levels have continued to decline, with just 118,380 property observed for sale nationally, over the four weeks to August 31st. Since the start of winter, total listing levels have declined from -14.0% below the five-year average, to -20.2% below average, with properties being absorbed from the market faster from the market then they are added. Compared to this time last year, the 28-day count of listings is down -13.3%.

• The annual rate of growth in national rents continued to tick higher for the second consecutive month, with rents up 4.1% over the year to August. Both the combined capitals and regions have seen momentum build in rental trends. Since bottoming out in June, the 12 month change in capital city rents has lifted 70 basis points to 3.4%, while the change in regional rents shifted from 5.3% over the 24/25 Financial year, to 5.8% over the year to August.

• Monthly dwelling approvals dropped -8.2% in July, following the massive 12.2% rise in June. The month-on-month decline was led by the unit segment, with approvals down -18.8%, while house approvals inched slightly higher over the month, up 0.6%. While approvals have generally been tracking higher since mid 2023, the average monthly approvals over the year to date remain -4.1% below the decade average and almost -20% down on the 20,000 per month needed to meet the national housing accord target.

• Following the August meeting, when the RBA delivered its third rate cut, speculation regarding a fourth was rife, with many expecting the cash rate to fall to 3.35% by the end of the year. Since then, however, a number of key economic indicators, have cast a shadow on the cash rate outlook.

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