Australia’s property market hit its sixth consecutive month of price gains, with every capital city climbing higher in July. Fresh data from Cotality reveals that national dwelling values rose 0.6% for the month, matching the growth recorded in May and June.

This sustained rise follows the Reserve Bank of Australia’s February rate cut, which boosted borrowing power and drew more buyers back into the fray.

Steady Gains Across the Capitals

July’s data shows every capital city posting higher dwelling values, keeping the broad-based recovery going. National values grew 1.8% in the three months to July, marking the strongest rolling quarterly bounce since mid-2024.

Low supply has been a key driver. Homes listed for sale remain well below normal, with national stock 19% shy of the five-year average for this time. Even so, annual sales are running nearly 2% ahead of the five-year mean, highlighting fierce buyer competition.

Auction clearance rates are steady, staying slightly above the ten-year average since May. This suggests strong buyer interest, combined with a shortage of homes, especially in the suburbs everyone wants. 

From March to June, the value of houses rose by 1.9%, while units grew by 1.4%. The gap between the median value of houses and units has now hit 32.3%, the widest it has ever been, showing that buyers are still willing to pay a premium for stand-alone homes. 

Tim Lawless, Research Director at CoreLogic, explains that a few factors are at play. In high-priced markets, house values react faster to changes in interest rates. When rates fall, high-income buyers can borrow more money and tend to move up to pricier homes, which are usually detached houses.

He noted that while apartments are priced better, buyers prefer detached houses more often, particularly where lifestyle or block size matters. Also, the slow pace of new multi-unit projects could push the preference for houses even more.

Capital cities are pulling ahead of regions again:

Regional markets had the upper hand for most of the last year, but the previous three months of data tell a different story. Across the combined capital cities, values climbed by 1.8 %, while regional prices rose by 1.7 %. Though the narrow gap is the first time capitals have outperformed regions in several quarters.

However, some regional areas are still outperforming capitals. Regional prices jumped by 2.5 % in Queensland, while Brisbane recorded a 2.3 % rise. Similarly, South Australia and Victoria saw their regional spots grow faster than their capital cities.

Cotality’s latest update shows that while property prices are still creeping upwards across the country, the speed is no longer speeding up. Since May, average prices have risen a little over half a % each month. A mix of thin supply, recent interest rate cuts, and a bounce in buyer confidence balances the affordability strains that still worry some shoppers. 

The thin supply and more buyers mean bidding wars are right around the corner. Jumping in sooner rather than later can position clients to snag properties in popular suburbs before the next price jump. 

Investors should watch the housing segment closely. Clearance rates are steady, and demand is still outpacing the number of homes for sale. This environment suggests good long-term capital growth in many suburbs. For clients focused on securing healthy returns, acting sooner rather than later could still deliver solid upside.

At  Key2dreamz we enable you to make educated decisions by providing expert knowledge, bespoke advice and the latest market information. Whether you’re on the hunt for your first home, downsizing, or investing, our team will work with you to gain an understanding of your needs, tailor an approach that is more specific to you, and provide a FREE, no-obligation market analysis. To book your free consultation book direct through Calendly. Alternatively, please ring us on +61 439260917 to chat to our team. With Key2dreamz on your side, it’s not just real estate, it’s smarter property decisions.