Cotality’s daily dwelling values index, which measures dwelling value growth across the five major capital city markets, lifted in September amid RBA rate cuts.
The following chart shows that dwelling values at the 5-city aggregate level rose by 0.9% in September, led by Perth (1.6%), Brisbane (1.1%) and Adelaide (0.9%).
Over the September quarter, dwelling values rose by 2.3% at the 5-city aggregate level, with Perth (3.8%), Brisbane (3.1%), and Adelaide (2.6%) recording stronger growth.
Over the first three quarters of 2025, dwelling values rose by 4.6% at the 5-city aggregate level, with Brisbane (7.2%) and Perth (6.4%) outperforming the average.
The lift in dwelling value growth follows a commensurate rise in auction clearance rates, which have risen to their highest average monthly level since June 2023.
On Wednesday, the Albanese government’s 5% deposit scheme for first home buyers will come into effect, which will provide further stimulus to the market.
Analysis by Lateral Economics suggested that the 5% deposit scheme will drive up property prices nationally by an additional 3.5% to 6.6% in 2026 and for several years afterwards.
However, in segments targeted by first-home buyers, which are defined as those below the scheme’s generous price caps, the impact is expected to be even more severe, with house prices tipped to rise by an additional 5.3% to 9.9%.
There is also the likelihood of additional rate cuts from the RBA, which will further stoke demand.
As a result, Australian house price expectations are at their highest level in 15 years, according to Westpac’s latest consumer sentiment survey.
Cotality’s latest housing chart pack valued the average Australian dwelling at an absurd $1,035,000.
Sadly, home values in Australia are about to become even more expensive.
