Australia’s housing upswing firmed in August as values rose at their fastest pace in over a year, powered by lower rates and scarce stock.
📈 What’s moving
- Prices: National values rose 0.7% in August, 1.8% over three months and 4.1% year-on-year. House gains led: Sydney +0.9%, Melbourne +0.4%, Brisbane +1.2%, Perth +1.1%.
- Medians: Sydney sits near $1.52m (+4.2% YTD), Brisbane $1.04m (+5.5%), Melbourne $956k (+3.5%), Canberra $1.008m.
- Units: Mixed picture—flat to softer in Sydney/Melbourne, stronger in Brisbane and Perth.
💡 Why it’s happening
- Rates: Three RBA cuts this year (total -0.75pp) boosted sentiment and borrowing power. Mortgage interest paid fell in June for the first time since 2021.
- Supply squeeze: Listings are about 20% below average; vacancy just 1.5%. Sydney new listings are 13.5% down on last year.
🌸 Sydney spring snapshot
- Fewer fresh listings in premium suburbs; more in affordable regions such as Ryde and Baulkham Hills.
- First Home Guarantee expansion could stoke demand, but serviceability hurdles remain.
🏠 Investors & risk
- Negative gearing high: Over half of Sydney landlords reported rental losses. In some north-west suburbs, ~75% are negatively geared.
- High holding costs despite rent growth signal tighter investor margins.
⚖️ Sellers vs buyers
- Old listings up: 22% higher in Sydney year-on-year as some vendors overprice.
- Distressed sales low: Few mortgagee listings, but overpriced homes are sitting unsold.
- Forecast: Prices tipped to rise steadily, not boom.
🔑 What this means for you
- Sellers: Low competition and stronger buyer capacity make spring a strong window—if pricing is realistic.
- Buyers: Expect more competition and limited choice; focus on quality assets and review older listings carefully.
- Investors: Stress-test loans; don’t rely solely on capital growth.
For tailored strategies in this shifting market, Rodney McLoughlin can help you navigate pricing, timing and negotiation with confidence.
Real Estate Newsletter
This article is a curated summary of various news stories from the past week, offering insights and updates on the real estate market. 5 September 2025.
Rodney McLoughlin is a trusted real estate professional with deep insights into the Australian property market. For personalized advice and market expertise, reach out to Rodney today.
