Cotality, a property adviser, says that the Australian property market rose up again in August 2025 since there weren’t many houses for sale and a lot of people wanted to buy them. The median price in the country rose 0.7% from July to A$848,858 (approximately US$551,588). This was the greatest monthly gain since May 2024, which implies that buyers are getting more competitive.
Changes in Prices in Big Cities
The growth wasn’t the same in all cities; some developed more quickly than others. Prices went increased the greatest in Brisbane, where they went up by 1.2 %. Melbourne finished in third with a 0.3 % hike, and Sydney came in second with a 0.8 % jump. Hobart was the only capital city where prices went down, down by 0.2 per cent.
| City | August Price Change |
| Brisbane | +1.2% |
| Sydney | +0.8% |
| Melbourne | +0.3% |
| Hobart | -0.2% |
The data suggests that the housing price trend is gaining strength in big cities, with Brisbane and Sydney becoming attractive sites for purchasers. source
Things That Are Making the Price Go Up
Cotality argues that the surge in price is caused by a number of things. People who wish to buy a property can now receive a loan more easily because the Reserve Bank of Australia (RBA) has decreased interest rates. In 2025, the RBA slashed rates three times and hinted at future cuts as inflation slowed down.
Real wage growth has also supported demand because it has made consumers feel more secure by raising their household income. At the same time, there aren’t many homes for sale, which has made it harder for purchasers to get homes quickly.
Tim Lawless, who is in charge of research at Cotality, stated that costs are going up because there aren’t enough of them and people want them. He stated that, once again, we see a clear mismatch between available supply and demonstrated demand, which is putting upward pressure on housing values
Prices are going up slowly across the country since February 2025, and this price shift is part of that pattern. That was when the central bank began a series of rate cuts to boost housing price trends. Inflation is still going down, so it’s still conceivable for policy to be even more lenient.
What this means for the market
The data suggests that competition is getting stiffer in crucial markets for persons who work in the real estate Australia such as buyer’s agents. People who want to buy are feeling increased pressure to act quickly, especially in areas like Brisbane and Sydney where prices are going up the fastest.
People who want to purchase or sell property will need to know more about the market and when to act as competition gets harder. Prices may keep going higher in the next few months because demand is still high and supply concerns are expected to remain.
Prices are likely to keep going up since the Reserve Bank has made it easier to get money, wages are rising, and there isn’t much inventory. There could be greater speed in the coming several months, especially in places where there is a lot of demand.
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