June 2025 Property Market Snapshot: Growth Gathers Pace

As we reach the halfway point of 2025, the Australian property market continues its upward trajectory. Stronger buyer demand and improved borrowing conditions—following the Reserve Bank’s rate cut earlier this year—are driving steady increases in property prices across the country.

Momentum is building not only in capital cities but also in regional areas, signalling a more unified national trend. Home values have now risen for five consecutive months, climbing 0.39% in May alone. Over the past 12 months, national property prices have increased by 4.12%, with capital cities leading the recent gains. Melbourne recorded the strongest monthly growth at 0.79% as it continues to recover, although values there remain 2.85% below their previous peak. Notably, Perth has now overtaken Melbourne’s median home value for the first time in a decade, driven by affordability and strong local demand. Adelaide, Perth, and Brisbane are all performing well, with Adelaide leading the nation with 11.04% annual growth.

Regional markets are also holding strong, recording a monthly increase of 0.25% and an annual rise of 5.19%—surpassing the combined capital city growth rate of 3.71%. Regional values are now 65% higher than they were five years ago, showing the continued appeal of lifestyle locations outside the capitals.

For those interested in the Adelaide property market, conditions remain favourable. According to GCCSA data, dwelling values in Adelaide rose by 0.5% in May, lifting the median property price to $805,000. Houses saw a stronger monthly rise of 0.6%, with the median now sitting at $861,000. Units recorded a modest increase of 0.1%, offering a more affordable option with a median price of $612,000. This balanced growth reflects Adelaide’s ongoing affordability, strong local economy, and rising appeal for both homebuyers and investors. For those buying property in South Australia, the current climate presents steady opportunities for long-term growth.

Looking ahead, the Reserve Bank’s February interest rate cut has already stimulated market activity by improving borrowing power. With the possibility of more cuts to come, buyer confidence is expected to rise further as more people bring forward their purchasing plans. At the same time, limited housing supply, ongoing population growth, and state and federal incentives are likely to keep prices under pressure, especially in desirable markets like Adelaide. Overall, the outlook for South Australian real estate in the second half of 2025 remains strong.

If you’re considering buying or selling property in Adelaide, the team at Eastern Conveyancing is here to guide you every step of the way. With expert knowledge of the local market and a smooth, stress-free approach to conveyancing in Adelaide, we’ll ensure your property journey is a success. Get in touch today to find out how we can help.

Source: https://www.realestate.com.au/insights/proptrack-home-price-index-may-2025/