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Property values across Australia surged in October, with Adelaide house prices rising the fastest of all capitals, according to the Home Price Index from PropTrack.
According to the October 2025 report, there was a 0.6 per cent national rise in home prices over the month, marking the 10th consecutive month of growth.
The national median home price now sits at a record high of $858,000, up 7.5 per cent from the same time last year, adding approximately $65,200 to the value of the median dwelling.
Among the capital cities, the South Australian capital of Adelaide saw the strongest monthly growth, rising by 1.2 per cent and taking the median house price to $880,000.
This was followed by the Queensland capital of Brisbane (up 0.9 per cent), where property prices rose to $976,000.
Brisbane also had the largest annual price increase of the states, with prices having accelerated by 12.6 per cent over the year. The only other city to have beaten that was the capital of the Northern Territory. Darwin’s house prices have risen 12.8 per cent over the year, according to PropTrack.
Sydney, Perth, and Hobart all recorded slight increases over the month of October, all recording a 0.6 per cent rise. Perth was up 11.8 per cent on an annual basis, Hobart was up 6.7 per cent year on year, while Sydney prices are 6.4 per cent higher than in October 2024.
Melbourne trailed with a 0.5 per cent increase over the month and 4.2 per cent over the year.
Of the capitals, only Canberra has seen property prices grow by less than Melbourne. The national capital has seen prices increase by just 2.7 per cent over the year, taking median property values to $859,000.
Regional markets continued to outperform capital cities over the past year, with a 7.9 per cent rise in property values compared to the capitals’ 7.4 per cent. However, the gap between regional and capital city growth has started to narrow, as capital cities, particularly in the south and east, are now leading the current upswing.
In particular, regional Victoria has seen a notable performance boost in recent months, with property values continuing to climb in line with the ongoing demand for more affordable housing outside the capitals. While regional markets are still outperforming the capitals on a five-year basis, their recent growth has slowed compared to the surging demand in city areas.
“The shift in market dynamics is clear,” said Eleanor Creagh, senior economist at REA Group. “What we’re seeing now is stronger growth in cities like Sydney and Melbourne, which had previously been slower to recover, while once-booming markets like Brisbane and Perth are stabilising.”
Nationally, property prices have been buoyed by lower mortgage rates, improved borrowing capacity, and rising consumer sentiment.
The PropTrack Housing Price Index (HPI) model predicts that these factors will continue to fuel price gains through spring and into summer, especially as demand continues to exceed available supply.
“With constrained stock levels and growing buyer interest, the market appears set for further growth,” Creagh added.
“Even though affordability remains a challenge, the ongoing supply-demand imbalance will likely keep conditions tilted in favour of sellers.”
PropTrack’s findings echo those from property analytics company Cotality, which recently reported a 1.1 per cent national rise in home values during October.
According to Cotality, the strongest growth was at the lower and middle price points, where the government’s expanded 5 per cent deposit scheme is driving demand.
This aligns with PropTrack’s observation of strong competition in the more affordable housing segments, especially in cities like Brisbane and Perth, which have seen substantial annual increases.
“We’re seeing strong momentum in the market, especially from first home buyers and investors taking advantage of the new deposit schemes,” said Cotality’s Tim Lawless. “The lower-to-mid price tiers are leading the charge, and these segments are expected to keep outperforming through the summer months.”
[Related: House price growth fastest in more than 2 years]