Australian property values reach new record despite election uncertainty
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Photo by Artful Homes
Australian residential property prices hit a new record high in April, with all capital cities recording growth despite potential headwinds from the upcoming federal election and US tariff announcements.
Property analytics firm Cotality, formerly CoreLogic, reported a 0.3 per cent increase in its Home Value Index last month, lifting the national median dwelling value to $825,349.
The April figures mark the third consecutive month of growth, adding approximately $2,720 to the median home price across the country.
Every capital city recorded price increases, ranging from 0.2 per cent in Sydney and Melbourne to 1.1 per cent in Darwin.
However, the rate of growth slowed compared to March’s 0.4 per cent rise, with market sentiment and auction clearance rates declining throughout April.
“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,” said Tim Lawless, research director at Cotality.
The property analytics firm attributed the slight deceleration to declining household confidence amid US tariff developments and the federal election scheduled for 3 May.
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“It is likely this may be causing some buyers and sellers to delay their decisions,” Lawless said.
Market activity was noticeably affected by the extended holiday period, with auction volumes plummeting during the break between Easter and Anzac Day.
In the week ending 20 April, just 644 auctions were held across the combined capitals, the lowest Easter auction volume since 2019.
New property listings also fell to their lowest levels for this time of year since 2019, with only 19,650 properties listed for sale across the combined capitals over the four weeks to 27 April.
Despite the nationwide price increase, several markets remain below their peak values.
Sydney home values are still 1.1 per cent below their September 2024 high, while Melbourne prices remain 5.4 per cent lower than their 2022 record.
Hobart has the largest gap to recover, with values 11.1 per cent below peak, while Darwin and the ACT are 2.7 per cent and 6.4 per cent below their respective all-time highs.
The annual rate of growth has slowed to 3.2 per cent nationally, the lowest annual increase since August 2023.
“The loss in momentum is reflective of the persistent slowdown in value growth seen between mid-2024 and early 2025, which culminated in falls over the three months ending January 2025 [before turning positive in February],” Lawless noted.
Regional areas continued to outperform capital cities, with median values in regional Australia increasing by 0.6 per cent compared to 0.2 per cent in capitals.
Over the 12 months to April, regional home values rose 5.3 per cent, more than double the 2.6 per cent growth recorded in combined capital cities.
The current median home value in regional areas stands at $673,373, compared to $905,763 in capital cities.
Regional South Australia and Western Australia recorded the strongest monthly gains at 1.5 per cent and 1.3 per cent respectively.
Cotality expects further modest price increases following the election and anticipated interest rate cuts.
“With further rate cuts likely as soon as May 20th, and a level of certainty returning to the market after the federal election on May 3rd, we expect a further modest rise in values for 2025,” Lawless said.