Latest House & Unit Prices Across Australia: September 2025

Latest House and Unit Prices Across Australia: September 2025

Australia’s housing market in September 2025 reflects a complex landscape shaped by strong demand, limited supply, and regional variations. Drawing on data from recent reports, including Your Mortgage (Cotality data), Domain, and KPMG, here’s a comprehensive overview of median house and unit prices across major capital cities and regional areas, alongside key trends and projections.

National Overview

As of August 2025, the national median house price in Australia stands at $920,003, while the median unit price (apartments and townhouses) is $695,440, according to Cotality (formerly CoreLogic). Capital cities are pricier, with a combined median house price of $1,056,440, compared to $708,956 in regional areas. Nationally, house prices rose 5.1% and unit prices 4.5% in 2024, with forecasts for 2025 projecting slower growth: 3.3% for houses and 4.6% for units (KPMG). Price growth is expected to accelerate in the second half of 2025 due to anticipated interest rate cuts by the Reserve Bank of Australia (RBA).

Capital City Breakdown

Here’s a snapshot of median house and unit prices for Australia’s eight capital cities as of August 2025, with year-over-year changes and five-year trends where available:

1. Sydney, NSW

• Median House Price: $1,521,611 (+0.8% from July 2025, +36.7% over 5 years)
• Median Unit Price: $873,838 (+0.8% from July 2025)
• Combined Dwelling Price: $1,224,341
• Key Trends: Sydney remains Australia’s priciest market, with suburbs like Bankstown (+7.4%) and Strathfield-Burwood-Ashfield (+7.1%) seeing strong growth. Domain forecasts house prices could hit $1.83 million by June 2026, a 7% rise, and unit prices may reach $889,000 (+6%). Strong population growth (650,000 new residents expected by 2034) and tight rental markets drive demand.

1. Melbourne, VIC

• Median House Price: $956,305 (+0.3% from July 2025, +16.8% over 5 years)
• Median Unit Price: $622,939 (+0.3% from July 2025)
• Combined Dwelling Price: $803,194
• Key Trends: Melbourne’s market has underperformed compared to other capitals, with modest growth and a weaker condo market. Domain predicts house prices could reach $1.03–$1.05 million by June 2025 (+2%) and unit prices may stagnate or fall up to 2%. High unit supply and affordability constraints are key factors.

1. Brisbane, QLD

• Median House Price: Approaching $1 million (exact figure not specified, +7.5% in year to June 2025)
• Median Unit Price: $670,000 (+13.3% in year to June 2025)
• Key Trends: Brisbane is a standout performer, with unit prices outpacing houses due to a chronic apartment shortage. Domain forecasts 5–7% house price growth and 7–9% unit growth in 2025, with houses nearing $810,000 by year-end. Strong population growth and infrastructure spending ($89 billion over four years) fuel demand.

1. Perth, WA

• Median House Price: $917,760 (approaching $1 million by year-end, +4% forecast for 2025)
• Median Unit Price: $519,000 (+14.3% in year to August 2025)
• Key Trends: Perth is Australia’s hottest market, with house and unit prices projected to rise 8–10% in 2025, potentially reaching $800,000–$1 million for houses and $552,000 for units. Low listings (50% below five-year average) and mining sector strength drive growth.

1. Adelaide, SA

• Median House Price: $1 million (+7–9% forecast for 2025)
• Median Unit Price: $568,000 (+12.3% in year to August 2025)
• Key Trends: Adelaide has joined the million-dollar club, with strong demand and limited supply. Forecasts predict 7–9% growth for both houses and units, reaching $586,000 for units by June 2026.

1. Canberra, ACT

• Median House Price: $941,300 (0–4% growth forecast for 2025)
• Median Unit Price: Not specified, but units underperformed in 2024
• Key Trends: Canberra’s recovery is mild, with house prices expected to grow modestly. Affordability constraints and a weaker unit market temper growth.

1. Hobart, TAS

• Median House Price: $710,077 (-11.1% from 2022 peak)
• Median Unit Price: Not specified
• Key Trends: Hobart remains one of the most affordable capitals, with moderate price increases expected. Limited data on units suggests slower growth compared to houses.

1. Darwin, NT

• Median House Price: $654,490 (+1.0% from July 2025, +36.8% over 5 years)
• Median Unit Price: $393,254
• Combined Dwelling Price: $553,131
• Key Trends: Darwin is Australia’s most affordable capital, with low price points and high rental yields (6.86%) attracting investors. Growth is modest (+1.2% for houses in 2025), but suburbs like Palmerston (+16.3%) show strong gains.

Regional Areas

• Combined Regional Median House Price: $708,956
• Regional NSW: Expected 2–4% house price growth, 1–3% for units in 2025.
• Regional Victoria: Weakest performer, with house prices forecast to fall 3–5% and unit prices flat or down 2%.
• Queensland Hotspots: Areas like Noosa and Sunshine Coast saw median resale profits above $400,000 in Q1 2025, driven by lifestyle demand.
• Key Trends: Regional markets are more affordable but face slower growth due to reduced migration incentives and economic uncertainty.

Key Market Drivers

1. Interest Rate Expectations: The RBA’s rate cuts in February, May, and August 2025 (cash rate at 3.85%) have boosted demand, with further cuts expected by November 2025, potentially driving 4–6% national house price growth and 3–5% unit growth.
2. Supply Constraints: Building approvals are at decade lows, with only 132,000 new dwellings completed from January to September 2024, far below the 1.2 million target by 2029. This chronic undersupply supports price growth, especially in Perth and Brisbane.
3. Affordability Challenges: Sydney’s median house price is nine times the median wage, making it the second least affordable city globally (Demographia). Units are gaining traction as buyers seek affordable alternatives.
4. Investor Activity: Low vacancy rates and high rental yields (4.5% for units nationally, 6.86% in Darwin) are attracting investors, particularly to units in Brisbane and Perth.
5. Economic and Policy Factors: Trump’s tariffs and a federal election in 2025 could dampen sentiment, but potential stimulus measures (e.g., first-home buyer incentives) may spur demand.

Public and Expert Sentiment

• Experts: Domain’s Dr. Nicola Powell describes 2025 as a “year of two halves,” with a weaker first half and stronger second half post-rate cuts, potentially reigniting FOMO (fear of missing out). KPMG forecasts stronger growth in 2026 (6% for houses, 5.5% for units).
• Public on X: Posts reflect mixed views. @SpachusAus notes Perth and Adelaide as top performers, with sold prices exceeding asking prices (+$25K in Perth), while @MittensOff warns of potential price drops in some areas for September.

Future Outlook

• Price Growth: National house prices are tipped to rise 4–6% and units 3–5% in 2025, with Perth, Adelaide, and Brisbane leading. Sydney and Melbourne may see record highs by June 2026 ($1.83M and $1.1M for houses, respectively).
• Rate Cuts: Further RBA cuts could lower borrowing costs, boosting demand but potentially fueling price increases in supply-constrained markets.
• Affordability: Units, especially in Brisbane and Perth, offer a more accessible entry point, with family-friendly apartments in gentrifying suburbs poised for strong growth.
• Risks: Trade tensions, high household debt, and a slowing economy (1.6% GDP contraction in Q2 2025) could temper growth, particularly in regional Victoria and Melbourne’s unit market.

Conclusion

Australia’s housing market in September 2025 shows robust but uneven growth, with median house prices at $920,003 and units at $695,440. Sydney remains the priciest, while Perth and Brisbane lead growth forecasts. Strong demand, limited supply, and expected RBA rate cuts drive optimism, but affordability and economic uncertainties pose challenges. Homebuyers and investors should focus on units in high-yield markets like Brisbane and Perth or gentrifying suburbs for long-term value, while monitoring RBA moves and global trade developments.