March 2025 Real Estate Market Report

Welcome to your March 2025 market update, brought to you by @realty, your trusted partner in real estate. In February, @realty transacted over $467 million in property, reflecting the strength of the @realty network

March Real Estate Market Report

National Price Growth: Home prices rose 0.40% in February, setting a new record and recovering from recent declines. Prices are now 3.94% higher year-on-year.

Capital Cities Lead the Rebound: After driving price dips in previous months, capital cities saw a 0.45% rise in February, outpacing the 0.28% increase in regional areas. Both markets are now at record highs.

City-Level Performance: Melbourne (+0.67%) and Sydney (+0.50%) led price growth in February, while Hobart (-0.03%) was the only capital to experience a decline. Melbourne recorded its strongest gains in house and unit prices since early 2020.

Quarterly Growth Trends: Behind Darwin, Melbourne and Sydney experienced the fastest quarterly price acceleration, while Adelaide, Hobart, and Perth saw a slowdown.

Regional vs. Capital Growth: Despite the capital city rebound, regional areas have outpaced them in annual growth (+4.54% vs. +3.70%), influenced by affordability constraints and increased housing supply in urban areas.

Top Performing Markets: Over the past year, Perth (+13.12%), Adelaide (+11.91%), and Brisbane (+10.21%) have been the strongest capital city markets, despite a recent slowdown in growth.

Property Forecast

Looking ahead, home prices are expected to continue rising, with additional interest rate cuts likely to support market growth. However, affordability challenges and structural issues, such as population growth and limited housing supply, could moderate price gains compared to past rate-cutting cycles.

While the pace of growth has slowed in some areas, Perth remains the strongest-performing capital city, with 13.12% annual price growth. Factors such as relative affordability, strong population growth, and constrained housing supply have contributed to this sustained strength.

Overall, the combination of lower interest rates, improved borrowing power, and strong demand is expected to keep home prices on an upward trajectory in 2025, albeit at a more measured pace compared to previous years.

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