Housing market growth halves as capital cities slow

National dwelling values have plateaued in January 2025, with the annual growth rate more than halving since its peak last February to 4.3 percent.

Capital city home values declined 0.2 percent while regional markets reached new record highs, rising 0.4 percent.

Melbourne led the capital city downturn with a 0.6 percent fall, followed by drops in the ACT and Sydney.

Mid-sized capitals continued to grow but showed clear signs of slowing, particularly in detached housing.

Adelaide maintained its position as the strongest performing capital city market, overtaking Perth despite an easing in its growth rate.

Regional Queensland dominated the fastest-growing markets, with Townsville recording 25.8 percent annual growth, followed by Central Queensland at 20.1 percent and the Mackay region at 19.5 percent.

The regional market strength appears driven by a renewed wave of internal migration, shifting away from the pandemic trend that favoured commutable lifestyle locations.

Brisbane and Perth have experienced a notable slowdown, particularly in house prices, despite continuing to post positive growth figures.