Home valuations oncover layers of gold in the West
Western Australia is now the ‘Golden West’. The state capital of Perth recorded the nation’s highest rise in home valuation in September, Cotality analysis has shown.
PERTH has outshone other capitals to record the highest monthly home price growth of 1.9% in October.
Gains were seen across the board, with every Australian capital and region recording a monthly rise in median values, Cotality’s Home Value Index reveals.
Across the combined capitals, values rose 1.1% over the month – equating to an increase of just over $10,000. It was the fastest monthly gain since June 2023.
Perth had the highest monthly growth of 1.9% in October, taking the median dwelling value to $884,471.
Brisbane was second, with values rising 1.8% over the month to a median of $992,864 while Darwin was third, with values lifting 1.6% to $564,473.
Adelaide recorded home value growth of 1.4% over the month, taking the median to $867,681.
Meanwhile Melbourne and Sydney recorded smaller gains of 0.9% and 0.7%, taking the median to $818,975 and $1.256 million respectively.
Over the year, Darwin outperformed other capital cities with annual price growth of 15.4%, followed by Brisbane, 10.8%, and Perth, 9.4%.
Meanwhile Adelaide median home values climbed 6.7% annually, followed by Sydney, 4%, and Melbourne, 3.3%.
Over October, regional markets also posted solid gains, posting a combined 1% gain over the month and 7.5% over the year.
Regional WA recorded the strongest increase of 1.8%, followed by regional Queensland, up 1.1%, and regional NSW, up 1%.
The pace of home value growth has been building momentum since the Reserve Bank of Australia in February delivered the first interest rate cut since November 2020, pushing the annual growth rate in dwelling values to 6.1% nationally.
“Before the February rate cut, housing conditions were losing momentum, even recording flat to falling values through late 2024 and January 2025,” said Cotality’s research director, Tim Lawless.
“The first rate cut in February marked a clear turning point, with home values moving through a positive inflection across most regions and gathering steam since then.”
The lift in growth reflects supply falling short of demand and is likely helped by the expanded Australian Government’s 5% Deposit Scheme which came into effect on October 1, enabling eligible first home buyers to buy a home with a deposit from 5%, and 2% for single parents, without need for lenders mortgage insurance.
