australian Housing Market Trends: A Shifting Landscape
Capital City Convergence
The Australian housing market is experiencing a notable shift, characterized by a convergence in performance across capital cities.The difference between the best and worst annual performers has narrowed considerably, indicating a more balanced market dynamic.
Currently, the gap between the strongest and weakest annual performers now sits at 9.8 percentage points – the tightest spread since March 2021.
This contraction signals a move away from the highly disparate growth rates seen in recent years.
Cooling and Stabilization
Mid-sized cities are experiencing a slowdown in growth, while previously weaker markets like Melbourne and Canberra are showing signs of stabilization. This trend contributes to the overall narrowing of performance gaps.
The market’s recent history reveals a stark contrast. Last August, the difference between top and bottom performers was 26.1 points, marking the most varied conditions since 2007.
The current environment represents a considerable shift from this peak of disparity.
Property Value Dynamics
lower-priced properties initially drove the upswing, but higher-end market segments are now gaining momentum. This suggests a broadening of the recovery across different price points.
In Sydney and Canberra, stronger quarterly growth
is evident in the upper quartile of the market, compared to lower-value segments.
This indicates a potential shift in market leadership,with luxury properties playing an increasingly significant role.
Regional Growth
Housing values in regional areas are also on the rise, with all state regions posting gains in 2025 so far. This widespread growth underscores the strength of the broader Australian property market.
Regional South Australia is leading the charge with a 5.8% rise
, while regional Tasmania has experienced more modest growth, increasing by just 0.1%
over the same period. These figures highlight the diverse performance across different regional markets.
