ISCOVER
New data revealed Australia’s national median home value rose 4.9 per cent over the year to July 2025, hitting a new peak.
The national median home value has reached a record high, rising 4.9 per cent in the year to July 2025, according to the latest Home Price Index (HPI) from property platform PropTrack.
In July, the national median home value rose 0.3 per cent to $827,000, representing a 50.2 per cent increase over the past five years.
Unsurprisingly, Sydney was home to the most valuable dwellings, with a median value of $1.19 million, followed by Brisbane ($919,000).
Over the year, the median value for regions was up 6.5 per cent year on year ($652,000), outpacing the rate of growth seen in the capitals, which was up 4.3 per cent year on year ($929,000).
In terms of growth among the major cities, Adelaide saw the greatest annual value gain (up 9.4 per cent to $845,000), while Canberra was the only capital that saw a decline (down 0.1 per cent to $835,000).
PropTrack also noted the pace of growth slowed in July, resulting in the smallest monthly growth seen this year.
The property platform’s report stated: “While the number of homes for sale has slowed over winter, buyer demand remains strong, with auction clearance rates sitting at the highest level in more than two years.
“Home prices are expected to break into new territory later this year, with further interest rate cuts expected to add momentum to price growth.”
All eyes on house prices
In July, Cotality noted the potential impact of rate reductions on house values and said its Home Value Index (HVI) has risen 2.3 per cent between the first rate reduction and the start of July.
At the time, the head of research at the property insights and analytics firm, Eliza Owen, said it is highly likely that an increase in overall borrowing capacity could lead to an increase in home values.
“With lower interest rates increasing the minimum amounts that households can borrow, it is highly likely that increased borrowing will be reflected in higher home values,” she said.
“Rising home values and lower rates may also elicit more sales and listings activity, contributing to an uplift in economic activity through things like real estate services and new furnishings.”
[Related: Home values keep climbing amid easing rates]
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