Australia’s housing market is showing signs of renewed strength, with national dwelling values recording a sixth consecutive month of growth in July 2025. According to data from property analysts, prices rose 0.6% last month, driven by improved buyer confidence and anticipation of interest rate cuts later in the year.
The rebound is particularly strong in smaller capital cities and regional centres, where affordability and lifestyle continue to draw both owner-occupiers and investors. First-home buyers are also re-entering the market, aided by government incentives and stabilising loan conditions.
Economists point to a shift in consumer sentiment as inflation shows signs of easing and the Reserve Bank signals a more dovish approach to monetary policy. This change in tone has encouraged buyers to act, with clearance rates improving and listings starting to rise.
While Sydney and Melbourne remain relatively stable, growth in Brisbane, Adelaide and Hobart has helped lift the national average. Regional hubs in Queensland and Victoria are also seeing increased demand, as hybrid work trends continue to influence residential preferences.
Although the recovery is still tentative, it marks a positive turn for a market that had faced cooling conditions for much of the previous year. Analysts warn, however, that challenges remain, particularly around housing supply and affordability. With interest rates expected to ease further into 2026, the next 12 months could see a more sustained recovery take hold.