Australian property values edge up despite political and economic uncertainties

Australian home values increased for the third consecutive month in April, rising 0.3 per cent to reach a new record high despite market activity slowing amid election uncertainty and international trade tensions.

The monthly increase added approximately $2,720 to the median value of an Australian dwelling, according to Cotality’s Home Value Index.

Every capital city recorded positive growth in April, with Darwin leading at 1.1 per cent while Sydney and Melbourne both registered modest 0.2 per cent increases.

The pace of growth eased slightly from March’s 0.4 per cent rise, with consumer sentiment and auction clearance rates declining throughout the month.

“The rate cut in February supported an upwards inflection in housing market conditions, but the positive influence from lower rates seems to be losing some potency,” said Tim Lawless, Cotality’s research director.

Lawless attributed the slowing momentum to reduced household confidence following US tariff announcements and uncertainty surrounding the upcoming federal election on May 3.

“It is likely this may be causing some buyers and sellers to delay their decisions,” he said.

The extended holiday period between Easter and Anzac Day further contributed to subdued market activity, with just 644 auctions held across capital cities in the week ending April 20 – 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 homes advertised for sale across capital cities in the four weeks to April 27.

Despite the nationwide increase in values, not all markets have returned to peak levels.

Sydney property values remain 1.1 per cent below their September 2024 high, while Melbourne values are still 5.4 per cent below their 2022 peak.

The annual growth rate slowed to 3.2 per cent nationally, the weakest annual rise since August 2023, reflecting the persistent slowdown in value growth between mid-2024 and early 2025.

Houses continue to outperform units, with house values across combined capitals rising 1.1 per cent over the past three months compared to 0.5 per cent for units.

Regional areas maintained their stronger performance relative to capital cities, with regional values increasing 0.6 per cent in April compared to 0.2 per cent across capitals.

Regional South Australia and Western Australia recorded the strongest monthly gains at 1.5 per cent and 1.3 per cent respectively.

Lawless anticipates further modest growth in the coming months, particularly with expected interest rate cuts and the resolution of election uncertainty.

“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,” he said.