Australia’s housing market surged again in September, with prices rising across every capital and regional area. According to PropTrack’s Home Price Index, the national median home price rose 0.5% in September, marking the ninth consecutive month of growth and sitting 6.2% higher than last year.
Lower interest rates and strong buyer confidence are fuelling this momentum. PropTrack Senior Economist Eleanor Creagh explained, “The combination of increased borrowing capacities, lower borrowing costs, stronger confidence, and renewed competition is underpinning a broad uplift.”
Melbourne’s Market Revival
After years of slower growth, Melbourne has returned to record-high home values, up 3.4% year-on-yearAussie home prices strengthen a…. Once one of the priciest cities, its relative affordability now attracts interstate investors. Barry Plant director David Moxon noted, “Buyer activity and sentiment have become more positive—even before the August rate cuts.”
Emerging Market Leaders
While Sydney and Melbourne are regaining strength, Darwin leads annual gains with 11.4% growth, driven by strong rental yields and tight supply. Hobart is rebounding too, posting 0.8% growth in September after years of stagnation.
What’s Next?
Although growth continues, experts believe prices will rise more modestly going forward. “Affordability pressures mean prices are unlikely to surge at the same 20–30% pace of previous booms,” Ms Creagh saidAussie home prices strengthen a…. Still, with confidence high and borrowing costs lower, Australia’s housing market remains firmly on solid ground heading into 2026.
