Thousands of auctions are happening every weekend across Australia, and the 2025 property season is already showing signs of activity picking up fast. From Sydney to Darwin, each capital city is following its own path—with some markets slowing down while others are gaining fresh momentum.
Whether you’re buying your first home or looking to expand your investment portfolio, knowing what’s happening in each market could make a big difference to your timing and strategy.
Sydney – Bouncing Back Fast
Short Downturn, Strong Recovery
Sydney’s recent price drop didn’t last long. After just three months of decline, the market turned around sharply in February, sparked by the first interest rate cut in years. This shift boosted buyer confidence and pushed prices upward again—especially in the upper end of the market, where demand has rebounded strongly.
Price Stability Over Two Years
While it may feel like Sydney’s market has moved a lot, prices today are sitting close to where they were in 2022. The ups and downs have largely cancelled each other out. With more investors showing renewed interest and buyer activity picking up, Sydney appears to be entering a new growth phase—though still with some caution from buyers watching how lending and rates continue to play out.
Melbourne – Momentum Returns
February Surprised Everyone
Melbourne posted the strongest price growth of any capital city in February 2025, recording a 4% increase in just one month. After lagging behind for much of the past year, this result marks a shift in buyer behaviour and renewed interest in Victoria’s largest market.
Prices Still Below 2022
Despite February’s growth, Melbourne’s dwelling values remain 6.4% lower than where they were in March 2022. For investors and homebuyers, this gap could represent a chance to get in before prices catch up. With the market cycle favouring Melbourne, those looking for value are starting to pay more attention.
Signs of Pressure Building
Listing volumes in Melbourne have dropped by 7.4%, while sales activity has increased by 10%. That means more buyers are competing for fewer homes, which can put upward pressure on prices. If this trend continues, the window to buy well in Melbourne may start to close.
Brisbane – Slowing After a Big Run
Prices Still High, Growth Easing
Brisbane has had a strong few years, but momentum is starting to ease. While prices are still sitting near record highs, the pace of growth has flattened.
One factor behind this shift is shrinking rental yields. As prices climbed quickly, the return on investment for landlords dropped. At the same time, rising prices have made buying less appealing for some, with more people choosing to rent instead.
Brisbane is still a solid performer, but it’s no longer the growth leader it once was. Buyers may now be more cautious as they weigh value against future gains.
Adelaide – No Longer Leading the Pack
Cooling After Strong Years
Adelaide has been one of the strongest performers over the past few years, but the pace is now starting to slow. In February, growth came in at just 0.3%—and for the first time in a long while, Melbourne outperformed it.
Despite the slowdown, annual growth still sits at a solid 12%. But this recent result suggests Adelaide’s peak may be behind it.
Expect More Moderate Returns
Looking ahead, Adelaide’s returns are likely to sit in a more typical range of 3–6%. Demand is still healthy, and low vacancy rates support the market, but the sharp price jumps seen over the last few years are unlikely to continue. For buyers, the pressure to act quickly may be easing.
Perth – Still Strong, But Peaking
Great Performance Behind It
Perth has had a standout year, recording 14.3% growth over the past 12 months. The city has been a favourite for investors, with affordability and rental demand helping to drive strong gains.
But the signs are shifting. Monthly growth is starting to taper, and buyers who got in early are now sitting on solid gains. Like Adelaide, Perth appears to be moving past the peak of its growth phase.
The market still has solid fundamentals, but future price rises may be slower and more measured than what we’ve seen recently.
Hobart – Signals Are Getting Stronger
Down 12% from Peak but Gaining Interest
Hobart’s property prices have fallen around 12% since their peak in 2022, but there are signs of change. Rental demand is picking up, and stock on the market is falling, which can often lead to price pressure building.
Yields in Hobart are currently higher than in many other capital cities, which is starting to attract interest from investors again. While it may not be booming just yet, Hobart is showing early signs that it could become a more active market in 2025. For those looking ahead, it may be worth keeping an eye on.
Darwin – One of the Strongest Performers Right Now
Huge Increase in Sales Activity
Darwin is showing a sharp jump in buyer activity. Sales volumes have surged by 30%, making it one of the biggest increases in the country. At the same time, the number of properties available for sale has dropped by 35%.
This mix of rising demand and lower stock is pushing the market in a clear direction—upward. It’s a clear sign that buyers are returning, and competition is heating up.
Prices Are Rising Despite Confusing Data
While some data sources are slow to reflect the shift, the change is happening on the ground. Different tracking methods are producing mixed results, but local activity tells a clear story—interest in Darwin is growing fast.
Many investors are now turning their attention to the NT capital, seeing it as one of the few markets with genuine room for growth in 2025.
Canberra – Flat and Waiting on Policy
Activity Is Quiet for Now
Canberra’s market has been steady but uneventful in early 2025. Prices haven’t moved much, and there’s little urgency from either buyers or sellers.
The upcoming federal election could change that. If there are major shifts in public sector policy or staffing, it may influence housing demand in the region. Until then, Canberra remains a watch-and-wait market with few surprises.
Rental Market Update
Growth Slowing Across the Board
Rental growth is easing across most major cities. After a strong run over the past couple of years, weekly rents are now levelling out—and in some areas, they’re starting to pull back.
In Melbourne, the CBD unit market is seeing noticeable declines in rental prices. Sydney has also reached a point where rent increases have slowed, with some signs that prices are beginning to flatten or even dip.
This shift may offer some relief for renters, but for investors, it could mean rethinking short-term cash flow expectations—especially in areas where yields have already been squeezed.
Conclusion
2025 is already shaping up as a year of change across Australia’s property market.
The boom markets of the past few years—like Perth and Adelaide—are starting to slow. Sydney and Melbourne, after a period of flat or falling prices, are beginning to show signs of renewed strength.
Meanwhile, Darwin has emerged as one of the most active and promising markets, with strong buyer interest and limited stock driving momentum.
For buyers and investors, staying close to these shifts will be key to making confident decisions in the months ahead.
Want help spotting suburb-level opportunities in 2025?
Try AbodeFinder’s free tools made for Aussie homebuyers and investors:
• SuburbFinder – Find areas with strong growth potential
• Buying Chance Calculator – Check how close you are to buying
• Suburb Insight – See the data and trends behind each suburb
Visit abodefinder.com.au and take the guesswork out of your next move.
