Spring Surge: Property Prices Gain Momentum Again – Oct25
Australia’s housing and property market is heating up again, with national dwelling values lifting 0.8 per cent in September 2025 — the strongest monthly gain since late 2023. The Cotality Home Value Index shows momentum gathering across almost every market, driven by scarce listings and renewed buyer confidence following this year’s rate cuts.
Capital City Property Strength
Every capital recorded growth over the month, quarter, and year. Perth (+4.0 %), Brisbane (+3.5 %), and Darwin (+5.9 %) led quarterly gains, underpinned by ultra-tight supply. Darwin listings are 53 per cent below average, Perth 45 per cent below, and Brisbane 31 per cent below, even as sales volumes run above trend COTALITY HVI Oct 2025 FINAL.
Median dwelling values now sit at $1.24 m (Sydney), $969 k (Brisbane), and $855 k (Perth), with national values averaging $857,280 COTALITY HVI Oct 2025 FINAL. Perth and Brisbane units are outperforming houses — a reversal of the usual pattern — as affordability and supply pressures push more buyers into apartments.
Rental Markets Tighten Further
Vacancy rates dropped to a record-low 1.4 per cent, with unit vacancies at just 1.1 per cent COTALITY HVI Oct 2025 FINAL. Rents climbed 1.4 per cent over the quarter, the sharpest lift in more than a year. Gross rental yields have eased slightly to 3.65 per cent nationally as price growth again outpaces rent increases, yet yields remain highest in Darwin (6.5 %), Perth (4.2 %), and regional WA (5.9 %) COTALITY HVI Oct 2025 FINAL.
What’s Driving the Property Upswing
According to Cotality research director Tim Lawless, the 75 basis-point cut to the cash rate since February has lifted median borrowing capacity by around 7 per cent and boosted consumer sentiment COTALITY HVI Oct 2025 FINAL. Real wages are growing at 1.3 per cent p.a. — the strongest since 2020 — while unemployment remains near historic lows (4.2 per cent). Combined, these forces are reigniting demand just as listings remain scarce.
Implications for Mortgage Brokers
For brokers, the message is clear: momentum is shifting back toward expansion.
- Borrowers’ serviceability is improving as rates fall.
- Rising prices are reviving equity positions, opening doors for refinancing, investment loans, and equity-release strategies.
- First-home-buyer activity is poised to lift sharply under the expanded Home Deposit Guarantee, which now enables purchases with just a 5 per cent deposit and no LMI costs — covering nearly half of all suburbs nationwide COTALITY HVI Oct 2025 FINAL.
Still, affordability constraints linger, with the national dwelling-to-income ratio near record highs (7.9 × income, Sydney 9.6). Mortgage professionals can expect strong enquiry from upgraders and investors seeking strategic finance advice as markets accelerate into 2026.