Property Market Update – October 2025

The flowers are in bloom, the birds are singing, and the property world is abuzz with eager buyers. Few things energise the property market quite like the spring selling season.

The Reserve Bank of Australia (RBA) may have left interest rates on hold at its latest meeting, but property price growth continues to trend upwards. All capital cities across Australia saw dwelling values increase in the month of September.

Population growth is an important indicator for housing demand, and investors should keep in mind that Australia’s population growth has been easing since Q3 of 2023, driven by a normalisation in overseas migration and a low rate of natural increase (births minus deaths), though there has been a quarterly upswing. Despite the overall slowdown, population growth remains above long-term averages.

Migration trends within Australia are stabilising, returning to more typical patterns seen before the pandemic, with fewer people moving to Queensland and Western Australia, and more people relocating to Victoria.

If you’re looking to snap up a property this spring, chat to us about pre-approval on your finance today.

Interest Rate News

The Reserve Bank of Australia (RBA) decided to keep the cash rate on hold at 3.60% at its latest meeting, after the latest inflation data came in higher than expected.

The Consumer Price Index (CPI) rose 3% over the 12 months to August, following a 2.8% rise in the 12 months to July.

Underlying inflation, as represented by the trimmed mean, was 2.6% to August, down from 2.7% to July.

RBA governor Michele Bullock said the bank was wary of any uptick in inflation.
“Market services and housing inflation were a little higher than we were expecting,” she said.
“So we’re just being a little bit cautious about that. It doesn’t, I don’t think, suggest that inflation is running away, but we just need to be a little bit cautious.”

If you haven’t reviewed your home loan recently, it may be worthwhile getting a home loan health check through us.
The next RBA cash rate decision will be announced on 4 November.

Home Value Movements

Growth in property values across Australia gained pace last month, driven by record-low listings as buyer demand heats up.

In September, we saw the strongest monthly rise in national dwelling values since October 2023. Perth and Brisbane led the way, with values up 4% and 3.5% respectively through the September quarter.

“The number of homes for sale at the end of September was about 53% lower than average in Darwin, 45% below average in Perth and down 31% in Brisbane,” Cotality research director Tim Lawless said.
“At the same time, estimates or quarterly home sales are tracking above average, demonstrating a clear disconnect between supply and demand.”

The extension of the Home Guarantee Scheme for first home buyers, now branded the Australian Government 5% Deposit Scheme, may put further upward pressure on property prices.

The scheme allows buyers to purchase their first home with a 5% deposit, without having to pay lenders’ mortgage insurance (LMI), with the government guaranteeing a portion of the loan.

There will be no caps on places or income limits, and price caps will increase (up to $1.5 million in Sydney, for example).

* Monthly Home Values figures as of 30 September 2025

* Australian auction results, clearance rates and recent sales for the week ending 05 October 2025

* The clearance rate is preliminary and current as of 3:30pm AEDT, 8 October 2025

Ready to buy?

With limited housing stock and strong competition among buyers, it’s important to have your finance in order before starting the house hunt.

Please contact us for assistance about pre-approval, so that you’re ready to bid or put in an offer, with full confidence about your borrowing capacity and spending limits.

Get in touch today, and let’s chat through your purchasing goals.