Australian property values reached new national record highs in March, recovering from a slump at the end of 2024.
Values rose by 0.4% nationally last month, according to a report by CoreLogic, and increased in every capital city except Hobart. This is the second consecutive month of growth, following an increase of 0.3% in February.
“Improved sentiment following the February rate cut is likely the biggest driver of the turnaround in values, along with the cut’s direct influence of a slight improvement in borrowing capacity and mortgage serviceability,” said CoreLogic research director Tim Lawless.
“With the rate-cutting cycle expected to be drawn out, it will be interesting to see if this positive inflection in values can last in the face of affordability constraints.”
Before February, national property values had fallen by 0.4% over the previous three months.
Sydney’s median property value in March was the highest at A$1.19 million, and rose by 0.3%. This is 1.4% below its all-time high, reversing a decline of 2.2% between September and January.
Darwin’s median value was the lowest at $519,287, but also saw the largest monthly growth rate at 1%. Brisbane and Adelaide’s median values reached new peaks in March, at $899,824 and $827,675 respectively.
The strongest growth nationally was seen in Western Australia’s mid-west, which posted an 25.4% increase in property values last month. Queensland areas Townsville, Gladstone, Central Highlands, and Mackay all reported growth above 20%.
Rental values have also climbed to record highs, with the national rental index increasing by 0.6% in March. Darwin and the regional Northern Territory saw the largest rise in gross rental yields in March.
The Reserve Bank of Australia said it would maintain interest rates at 4.1% today. Lawless said any gains in the property market from future rate cuts would likely be offset by issues like slowing population growth.
“We still have very unaffordable housing prices. Even though sentiment is rising it's doing so from a low base, and we're also seeing some uncertainty around global trade wars and conflict as well,” he said.
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