House Prices Up by 8.9%, May Hit Double Digits by Christmas 2025

Australia’s housing market continues to surprise, showing remarkable resilience even in what many thought would be a cooling phase.

Fresh national data reveals that house prices have surged 8.9% this year, and experts are now predicting that growth could hit double digits by Christmas.

For homeowners, it’s fantastic news. For those still waiting to buy, it’s a wake-up call because the window of opportunity might be closing faster than expected.

Why prices are rising again

After a rapid acceleration in August, the market steadied slightly in September, with house prices up 0.6% and units up 0.5%. While that’s slower than August’s “sugar hit” surge, it’s actually a sign of a more sustainable pace of growth that’s steady, not speculative.

The biggest factor behind this renewed momentum is the Reserve Bank’s recent rate cuts. Lower borrowing costs have made property finance more affordable, bringing both first-home buyers and investors back into the market. The RBA’s decision to hold the cash rate at 3.6% has also given buyers confidence that the worst of the rate hikes are behind us.

If another cut happens before the end of the year, we could see another wave of activity pushing prices even higher.

The capital city breakdown

The growth is widespread across the country.

🏠 Brisbane is leading the nation with 10.5% annual growth, proving once again that affordability, infrastructure, and interstate migration make it one of Australia’s strongest performers.

🏠 Adelaide follows closely at 9.1%, where a balance of lifestyle and low supply continues to attract buyers and investors alike.

🏠 Sydney may be moving at a slower pace with 6.3% growth, but that still represents tens of thousands of dollars in added value for homeowners.

🏠 Melbourne, after years of subdued performance, is finally regaining momentum, recording 5.3% annual growth, its best since 2017.

Meanwhile, Perth and regional Western Australia continue to outperform, as strong population growth and housing shortages push prices higher.

What it means for buyers and investors

If current trends continue, national house prices could see their first double-digit annual rise since the pandemic boom. To put that in perspective, Sydney’s median home price could lift by around $67,000 in just three months, while Brisbane’s could jump by $45,000 before Christmas.

That’s the kind of growth investors dream about, and it’s happening quietly while many are still waiting for prices to “drop.”

The reality is, the longer you wait, the higher the entry price becomes. With borrowing costs stabilising and demand rising, sitting on the sidelines could mean paying tens of thousands more for the same property just months later.

Your Takeaway

If you’ve been thinking about getting into the market, the next few months may be your best chance before another surge. The combination of stable interest rates, renewed buyer confidence, and limited supply is setting the stage for continued growth into 2026.

And if you’re not sure where to start, or which areas still offer strong potential before the next jump, book a free call with Adeal.

We’ll help you identify the right opportunities so you can secure your property before prices climb again.

Because while everyone else is waiting for the “perfect time,” smart investors are already taking action.