Momentum fades in previously surging property markets
The Australian property market is showing signs of stabilisation, with growth rates becoming more uniform across the country.
According to recent analysis, the difference in price growth between the fastest- and slowest-growing areas in major cities has narrowed to its smallest margin since 2020.
Data from the Australian Bureau of Statistics (ABS) indicates that, so far in 2025, property prices in Sydney and Melbourne have risen at a steady pace, while smaller capital cities such as Brisbane, Perth, and Adelaide are experiencing slower growth compared to the strong gains recorded over the previous five years.
The trend is also evident at a more local level. Analysis of ABS SA3 regions – areas typically comprising 30,000 to 130,000 residents – shows that the gap in growth rates among different suburbs within capital cities has diminished.
“Most of the country is seeing consistent, but unspectacular growth – particularly relative to the pace we’ve seen in some areas in recent years,” said Angus Moore, senior economist at PropTrack. “Whether this convergence continues remains to be seen.”.
In previous years, regions that had seen rapid price increases continued to outperform city-wide averages. However, in 2025, there is little correlation between a region’s recent performance and its growth over the past few years. Most areas are now experiencing steady, but moderate, price increases, a marked change from the sharp rises seen in some markets in recent years.
Looking ahead, property prices are expected to keep rising, supported by anticipated interest rate cuts and reduced mortgage costs. However, growth is likely to remain modest due to ongoing affordability challenges.
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.
