As the spring season progresses, Australian housing markets are showing significant strength, with property values gaining considerable pace. September 2025 marked the most substantial monthly increase for national dwelling values since October 2023, with the Cotality Home Value Index (HVI) rising by 0.8%. This growth is largely powered by robust conditions in the capital cities, where values collectively increased by 0.9% over the month.

The primary driver behind this surge in property values is a significant imbalance between housing supply and buyer demand, characterized by record-low listings. Across every capital city, the number of properties advertised for sale is below the long-term average. For the four weeks leading up to September 28th, listings in capital cities were approximately 18% below the previous five-year average. In stark contrast, sales activity during the September quarter was estimated to be 7.3% above the five-year average, highlighting a clear disconnect where more people are buying than selling.

This supply squeeze is particularly acute in several key markets, which are now leading the nation in value growth.

• Darwin: Advertised housing stock is about 53% lower than its average, contributing to a remarkable 5.9% jump in dwelling values over the September quarter.

• Perth: Listings are 45% below average, fuelling a 4.0% quarterly price increase.

• Brisbane: With stock levels down 31%, the city saw values rise by 3.5% in the same period.

This trend of broad-based growth is evident across the country, with every capital city and rest-of-state region recording an increase in dwelling values over the past month, quarter, and year. On a national level, the September quarter saw a 2.2% rise in the HVI, which translates to an $18,215 increase in the median dwelling value.

The intense competition for limited housing stock has also strengthened selling conditions. Auction clearance rates, a key indicator of market health, have consistently hovered around the 70% mark since mid-August, a notable increase from the low 60s seen in the first half of the year. The dynamic is further intensified by government initiatives like the expanded Home Deposit Guarantee, which, while creating opportunities for first-home buyers, also adds to the competition in a tightly supplied market.

Growth is also occurring across different price segments of the market. While all tiers have seen values rise, the strongest momentum has shifted from the lower quartile to the broad middle of the market. In the combined capitals, both the lower and middle quartiles saw values increase by 2.6% and 2.7% respectively during the September quarter, outpacing the 1.8% rise in the upper quartile. This shift may be a reflection of improved borrowing capacity, enabling buyers to target slightly higher-priced properties. In summary, the combination of surging buyer demand and historically low inventory levels continues to put upward pressure on property values across Australia heading into spring.