National dwelling values continue upward trend
Australia’s residential property sector has reached a new benchmark, with the total value of housing stock rising to $11.8 trillion, according to Cotality’s October Monthly Housing Chart Pack.
The latest figure represents an increase of $678 billion over the past year, reflecting ongoing strength in the market. National dwelling values grew by 2.2% in the three months to September, marking the largest quarterly rise since May 2024. Annual growth also gained pace for the fourth month in a row, lifting from 3.7% over the 2024-25 financial year to 4.8% in the year to September.
“This $11.8 trillion milestone is a clear testament to the resilience of Australia’s property market, where national dwelling values are now up 4.8% over the past year,” said Eliza Owen, head of research for Australia at Cotality. “We're seeing a clear building of momentum, with a 2.2% rise over the September quarter alone, the largest quarterly increase since May 2024.
“At the moment, there’s some uncertainty around the timing of another cash rate reduction, and inflation impacting market momentum through to the end of the year. However, if the property market were to continue at its current rate of growth, it’s possible the combined market value could hit $12 trillion by the end of the year.”
Analysis of suburb-level performance since the first interest rate cut in February reveals that Darwin suburbs have recorded the strongest capital growth. Between late February and September 2025, Wanguri and Durack in the Northern Territory each posted gains of 20.1%. These increases are attributed to factors such as relative affordability, limited housing supply, and increased investor activity.
In contrast, most suburbs experiencing declines in value since the rate cuts are located in Sydney and Melbourne, particularly in inner-city areas with high-density unit developments. Milsons Point in Sydney recorded the largest drop at -7.1%, followed by Kirribilli at -6.3%.
Owen (pictured right) said this pattern reflects wider market trends. “Even though we’ve gone hyper-local with the suburb analysis, the data highlights a broader trend of Darwin leading Australia’s capital growth trend,” she said. “City home values are up 13.4% through the year to date. It’s a relatively affordable market, and investors may be taking note of high yields and rapid value increases.
“Some of the top performing regional markets were also the most affordable, such as Boggabri in regional NSW and Rochester in regional Victoria, each dwelling market with a median below $400,000. With other capital city and major regional markets soaring in value over the past few years, it seems like buyers are targeting what is left of the affordable land and housing across the country as interest rates fall and rents re-accelerate.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
