Market Update - Thomas French
- Thomas French
- Sep 23
- 2 min read
Housing Market Heats Up Into Spring
Australia’s housing market is building real momentum. The national Home Value Index jumped 0.7% in August – the strongest monthly lift since May last year – pushing annual growth up to 4.1%.
Since February’s rate cut, improved borrowing power, stronger real wages, rising confidence, and tight stock levels have kept demand high and buyers moving quickly.
While growth is widespread, it’s more measured than the pandemic boom (when values surged 3.1% in a single month). With affordability stretched, gains are expected to continue at a steadier, more sustainable pace.
Where Growth is Strongest
Nearly every region rose in August, with mid-sized capitals leading the charge:
Brisbane: +1.2%
Perth: +1.1%
Adelaide: +0.9%
Darwin: +1.0% in August, and up a massive 10.8% year-to-date – the strongest performance nationwide.
This strength comes down to supply and demand: sales are up, listings remain 20% below average, and vendors are heading into spring with the upper hand. Auction clearance rates climbed to 70% in late August – the highest since early 2023 – underlining fierce competition.
Rentals: Tight and Getting Tighter
Rents are also on the move, with the national rental index up 0.5% in August, the sharpest rise since May last year. Annual rental growth has lifted to 4.1%, with vacancy rates stuck at 1.5% – near record lows. That squeeze is likely to keep pressure on inflation in the months ahead.
Melbourne Snapshot
Melbourne values nudged up 0.3% in August, notching a seventh straight month of gains. Annual growth sits at 1.4%, the best run since mid-2023.
Houses continue to outpace units:
Houses: +2.1% year-on-year (+0.4% in August)
Units: –0.4% year-on-year (+0.2% in August)
National Outlook
All signs point to a busy spring selling season. Listings will rise, but demand – powered by stronger household finances, improved sentiment, and real wage growth – should stay ahead of supply.
Consumer confidence is at a 3.5-year high, households are saving again, unemployment remains low, and real wages are growing at their fastest pace since 2020. Mortgage stress is contained, and from October 1, the expanded Home Guarantee Scheme will give first-home buyers a leg up with deposits as low as 5%.
Still, affordability constraints and cautious lending will keep a lid on runaway price growth. The result? A market that’s firm, competitive, and moving at a healthier clip than the boom years – with plenty of action to come this spring.
If you’d like a suburb-specific property report, please get in touch with me using the details below, or follow the link to arrange a free, obligation-free market appraisal of your property. Please use the reference (TF) next to your name.
Thomas French (TF)Executive Sales Consultant📞 M: 0415 558 101📧
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