“September Market Update at a glance”
Here’s your September property news, a fast wrap on prices, stock, rentals, and sentiment across Metropolitan Melbourne and Regional Victoria.
Melbourne home values for all dwelling types rose +0.5% in September and +0.3% for Regional Victoria, as reported by CoreLogic’s Home Value Index, setting the stage for a competitive spring selling season. Median prices in Melbourne for all dwelling types now sit at $805,880 for Metro Melbourne and at $595,699.
Nationally, prices rose +0.8%, marking the strongest monthly increase since October 2023. Here’s a full wrap on all the capital cities: Sydney: Values rose 0.8% in September, with the median dwelling value reaching $1,241,054. Brisbane: Still one of the strongest markets, values lifted 1.2% over the month. The city’s median value is $969,868.
Adelaide: Dwelling values increased 0.9% in September and are up 6.2% annually, with the median sitting at $855,998.
Perth: The standout performer among the larger capitals, Perth surged 1.6% in September. Median values are now $855,267.
Darwin: The strongest annual growth at 12.9%, with a median of $558,595.
Canberra: Up 0.7% in September, with the median at $885,942.
Hobart: Largely flat, with a median of $683,390.
For regional markets, combined regional dwelling values lifted 0.7% in September and are now 6.6% higher annually, outpacing capital cities on a yearly basis. Regional Victoria saw modest growth of 0.3% for the month but remains down 4.6% from the peak (May 2022), though still 34.8% higher over the past five years.
The four current market drivers that exist are:
- Record-low listings: Capital city advertised stock is 18% below the five-year average, while sales are tracking 7.3% above average.
- Borrowing capacity: Following three rate cuts, borrowing power has increased by 7% since February.
- Sentiment & wages: Consumer sentiment is 12.8% higher year-on-year, and real wages growth at 1.3% annually is at its strongest since 2020.
- Government support: The expanded Home Deposit Guarantee — which allows for a 5% deposit, no LMI, and no income criteria — is expected to drive first-home buyer demand, particularly at the new price caps. Caps for buyers in Sydney will rise to $1.5 million, while in Melbourne the cap will expand to $950,000. Brisbane properties will be eligible up to $1 million. Couples were previously excluded from the scheme once their combined income surpassed $200,000, while singles had to earn below $125,000 to qualify.
The rental market conditions that exist have national vacancy rates at a record low of 1.4% in September, with rents accelerating 0.5% for the month and 1.4% over the quarter — the strongest since June 2024. Melbourne yields sit at 3.7% for combined dwelling types, while Sydney remains the lowest at 3.0%, contrasting with Darwin units at a high of 7.8%. Regional Victoria has yields sitting at 4.3%.
The outlook for the spring selling season is shaping up strongly. Low stock levels, combined with elevated buyer demand and improved borrowing conditions, are expected to push prices higher into the end of 2025.
Electricity bill relief rebate starts 1 Oct, so you can expect a $75 rebate in the coming days. Cotality wrote an interesting article on the value energy efficiency is adding to home prices. To read more, click here: https://www.cotality.com/au/insights/analysis/watts-it-worth.
The recently commenced government battery scheme gives a 30% rebate on home batteries (with no caps), which should prove to be popular with solar feed-in tariffs recently dropping between 1 to 4 cents. Watch this space, because the NSW Government is considering charging the owner for solar feed-in in the future.
- Free Sales Price Report: https://www.obrienrealestate.com.au/property-report/
- Free Rental Report: https://www.obrienrealestate.com.au/rental-report/
- View our Annual Axis Report: https://www.obrienrealestate.com.au/axis/
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