Australian home values climbed at their fastest pace in almost a year in September, with record-low listings and firm demand combining to push prices higher across the capital cities.
According to Cotality’s Home Value Index (HVI), national dwelling values rose 0.8% last month, the strongest monthly increase since October 2023.
Prices in the capital cities lifted 0.9%, led by Darwin with a 1.7% gain, Perth at 1.6% and Brisbane at 1.2%.
Sydney, the country’s largest market, rose 0.8%.
On a quarterly basis, the national HVI advanced 2.2%, up from 1.5% in the June quarter and double the 1.1% rise recorded in the March quarter.
In dollar terms, the September quarter rise added about $18,215 to the median dwelling value.
Growth was broad-based across value tiers, though momentum has shifted from the lower end of the market to the middle amid improved borrowing capacity as interest rates fall.
The Reserve Bank of Australia has cut rates three times this year and is expected to deliver two more reductions by May 2026, further supporting housing demand.
Tight supply remains a key driver. Cotality reported that advertised stock levels are below average across all capital cities.
Over the four weeks to 28 September, listings were 18% below the five-year average.
Meanwhile, sales activity in the September quarter was 7.3% higher than the five-year norm.
This imbalance between supply and demand has strengthened selling conditions.
Auction clearance rates have averaged around 70% since mid-August, compared with 63% in the June quarter and 62% in the March quarter.
