Home values rise again ahead of expected May rate cut
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Australian property prices rose for the third consecutive month in April after a strong rebound in 2025.
Lower interest rates have been a key driver of the market's strength, and it's looking increasingly likely that we'll see another cut arriving within weeks.
Could it be the start of another boom? Find out if another major housing uplift is on the way.
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Australian property prices: April 2025
The national median home value rose another +0.3 per cent over April, with every capital city recording a lift according to CoreLogic's latest report.
After three months of widespread growth, that brings quarterly gains up to +1.1 per cent.
| Market | Month | Quarter | Annual | Median value |
|---|---|---|---|---|
| Sydney | 0.2% | 1.0% | 0.9% | $1,194,709 |
| Melbourne | 0.2% | 1.0% | -2.2% | $786,158 |
| Brisbane | 0.4% | 1.0% | 7.8% | $907,864 |
| Adelaide | 0.3% | 0.9% | 9.8% | $825,776 |
| Perth | 0.4% | 0.7% | 10.0% | $807,728 |
| Hobart | 0.9% | 0.9% | 0.5% | $664,462 |
| Darwin | 1.1% | 3.4% | 2.5% | $526,410 |
| Canberra | 0.4% | 0.6% | -0.6% | $864,343 |
| Combined capitals | 0.2% | 1.0% | 2.6% | $905,763 |
| Combined regional | 0.6% | 1.5% | 5.3% | $673,373 |
| Australia | 0.3% | 1.1% | 3.2% | $825,349 |
Sydney and Melbourne saw slightly more gradual movement with a +0.2 per cent uplift for each city.
The pace also eased in Brisbane, Adelaide and Perth, although all three cities still posted solid growth.
Perhaps the bigger surprise in April was strong performances from the smaller capitals, particularly Darwin, which shot up +1.1 per cent, and Hobart, which gained +0.9 per cent.
CoreLogic's research director, Tim Lawless, explained that the market appears to be settling after the early-2025 interest rate excitement.
“The rate cut in February supported an upward inflection in housing market conditions, but the positive influence from lower rates seems to be losing some potency," he said.
Three key takeaways from the current market
The 2025 market is already seeing some noteworthy shifts as price growth returns. Here are a few of the headline trends worth following.
Growth remains steady despite uncertainty at home and abroad
While it may be business as usual come Monday, federal elections typically pump the brakes on Australia's property markets as some buyers, sellers, and particularly investors sit on the sidelines with a wait-and-see approach.
The Trump White House's fast-changing announcements on global import tariffs to the US also threw financial markets into disarray over April, leading to widespread speculation over what the implications could be for Australia moving forward.
Mr Lawless suggested that "household confidence slipped in April, with the US’s ‘Liberation Day’ tariff announcements and the upcoming federal election causing uncertainty.
"It is likely this may be causing some buyers and sellers to delay their decisions."
Falling inflation is making a strong case for more rate cuts
The positive news surrounding inflation has continued right through into May, leading a wide range of experts to claim that an interest rate cut later this month is all but a certainty.
Already in 2025, the single rate cut in February has had a major impact on Australia's property markets, rapidly reversing a short and shallow housing downturn that emerged towards the end of 2024.
On the back of the latest inflation figures on April 30th, Wespac has said a May cut is "locked in" when the RBA holds their next meeting on May 20th.
It's likely that any further reductions to the cash rate will help stimulate buyer activity, improve consumer sentiment, and put upward pressure on property prices.
Regional markets are having a particularly strong 2025
While there have been downs and now ups for our capital cities over the past six months, it's been smooth sailing for most regional markets as growth steadily climbs.
Regions once again outpaced the capitals in April, gaining +1.5 per cent overall over the latest three-month period.
CoreLogic's report stated that "Stronger regional value growth has been broad-based, with every state except Tasmania recording a faster monthly pace of gains in regional values.
"However, regional SA and regional WA stood out with the most significant gains, up +1.5 per cent and +1.3 per cent respectively over the past month."
What's next for Australian property?
With the federal election out of the way, conditions are looking very positive for an upcoming rate cut, and a potential easing around global tariff confusion, we may be looking at somewhat calmer waters up ahead.
CoreLogic's report noted that regardless of which party were to win the election, both parties have been promoting housing policies that would be likely to boost buyer demand.
They add that "a persistent undersupply of housing is likely to keep some upward pressure on housing values."
The RBA's next cash rate decision on May 20th, which again is highly likely to be a cut to rates, should also have a stimulatory effect similar to what we saw from their February decision.
In terms of headwinds, CoreLogic noted that housing affordability remains a widespread problem, and population growth is easing back to decade-average levels.
Both factors may help to keep a lid on runaway property prices over the course of the year.
The report concludes that, "Overall, housing values are expected to continue rising in the short term, albeit at a softer pace than in early 2024."
