According to PropTrack’s Home Price Index, national property values rose 0.27 per cent in March, pushing prices 3.91 per cent higher than a year ago and up 48 per cent over the past five years.
Capital city markets led the monthly gains with prices rising 0.31 per cent, while regional markets saw a more modest increase of 0.18 per cent.
Both markets reached new record high prices in March.
Eleanor Creagh, REA Group Senior Economist, said the February rate cut has had a significant impact on the market.
“February’s rate cut boosted borrowing capacities and buyer confidence, helping to reignite demand and reverse the small price declines seen in the months prior,” Ms Creagh said.
Canberra and Sydney emerged as the strongest performing capitals in March, recording growth of 0.54 per cent and 0.47 per cent respectively.
Meanwhile, Brisbane, Adelaide, and Perth experienced more modest monthly increases but remain the top performers over the past year.
The PropTrack data revealed Brisbane values have risen 9.39 per cent over the past 12 months, while Adelaide and Perth recorded even stronger annual growth of 11.32 per cent and 11.53 per cent respectively.
Melbourne, Canberra and Sydney showed the strongest turnaround in quarterly price growth, demonstrating a notable uplift in momentum in early 2025 after experiencing slower conditions at the end of 2024.
In contrast, the previously booming markets of Adelaide, Brisbane and Perth have seen growth decelerate over the same period, suggesting a potential rebalancing across capital city markets.
While capital cities are now leading the price rebound, regional areas continue to perform well, with annual growth in regional areas at 4.59 per cent, slightly outpacing capital city growth of 3.64 per cent.
Ms Creagh pointed to structural factors that continue to support price growth across the country.
“Population growth remains strong – though it is beginning to moderate – and Australia continues to face a significant shortage in new home completions,” she said.
However, affordability constraints remain a significant challenge for many buyers, which may limit the pace of future growth despite the improved borrowing conditions she said.
“We expect prices to keep lifting over the coming months, but the rate of growth is likely to be more modest compared to recent years,” Ms Creagh said.
“With affordability still a major constraint, the impact of further rate cuts will be somewhat tempered.”
The PropTrack data suggests that buyers who had previously delayed purchasing decisions due to the sustained higher interest rate environment are now re-entering the market, contributing to the renewed price growth.
“Market sentiment has improved and buyers who had delayed purchasing decisions due to the sustained higher interest rate environment are likely re-entering the market,” Ms Creagh said.
