Property Finance Update - September 2025

LoanCaddie
Sep 12
4 min read

Spring is here, and with it comes one of the busiest times in the property market. Longer days, blooming gardens and renewed buyer confidence make this season a prime time for selling – and competition is already heating up among buyers eager to secure their next home.

The latest cash rate cut has only added fuel to the market. In August, Australia’s median property price rose by 0.7% – the strongest monthly growth since May last year. With more interest rate cuts expected, this year’s spring selling season is shaping up to be one of opportunity for both buyers and sellers.

If you’re thinking about buying, now’s the time to get your finance pre-approved so you can move with confidence when the right property comes up.

Home value movements

National property values rose by 0.7% in August, taking the median home value to $848,858.

Cotality head of research Eliza Owen said the drivers of rising home values were straightforward.

“You’ve got more demand in the housing market, with real wages growth up to its highest level in five years, lower interest rates and more consumer confidence aiding housing purchases.”
“You’ve got about 120,000 properties on the market for sale right now, whereas usually this time of year, the five-year average would be 150,000. “So rising demand against tight supply is continuing to see a rise in home values.”

City	August Growth	Outlook Summary
Sydney	+0.7%	Sydney’s market is gaining momentum, with prices forecast to rise 5% by December and another 8% in 2026. This could add approximately $154,000 to the median value. Buyer competition is intensifying amid tight supply, and auction clearance rates are climbing.
Melbourne	+0.3%	Melbourne is nearing full recovery from its 2022 peak, now just 0.6% below that level. Prices are expected to rise by over $100,000 to the median value in the next year, with a potential 10% surge in 2026. Buyer sentiment is improving, especially in inner suburbs.
Brisbane	+1.2%	Brisbane continues to lead monthly growth. Forecasts suggest a $93,000 to the median valueincrease in median value over the next year. While demand remains strong, growth may moderate as more listings enter the market.
Adelaide	+0.9%	Adelaide remains resilient with consistent growth. Forecasted gains of around $70,000 to the median value are expected, supported by affordability and investor interest. The market is steady, though not accelerating as rapidly as in 2024.
Perth	+1.1%	Perth is expected to grow by approximately $102,000 to the median value. Investor activity remains strong, but the pace of growth is stabilising compared to last year’s highs. Rental yields continue to attract buyers.
Canberra	+0.4%	Canberra’s market is stable, with modest monthly growth. Prices are expected to continue rising gradually, supported by consistent demand and limited new supply.
Darwin	+1.0%	Darwin leads annual growth nationally at +10.4%. Investor loans in the NT have doubled year-on-year, and the market is expected to maintain strong momentum through spring.
Hobart	–0.5%	Hobart is the only capital city in decline. Buyer demand has softened, and oversupply in some areas is weighing on prices. A rebound may occur later in the year, but short-term conditions remain subdued.

Interest rate news

The monthly Consumer Price Index indicator rose 2.8% in the 12 months to July, a larger-than-expected increase from the 1.9% rise in June.

The Reserve Bank of Australia (RBA) responded by cutting the cash rate in August to 3.6 per cent in a unanimous decision by the Board, while also flagging the potential for two or three more rate cuts to come.

All four major banks passed on the cash rate cut to customers by the end of August, providing mortgage relief to millions of borrowers. For example, those with a $500,000 home loan, that equates to roughly $74 in savings a month.

RBA governor Michele Bullock said the RBA was increasingly confident that unemployment would not rise and inflation would stay near the target level.

“That’s our best guess, and we’re looking to see that we continue on that path and, as we do, we can continue to lower interest rates,” she said.

What does this mean for you? Even a small reduction in your interest rate can help you reduce costs over the life of your loan. It’s a good time to book a home loan health check and see how your current loan compares.

The next RBA cash rate decision will be announced on 30 September.

Ready to buy?

With fewer listings than normal for this time of year and strong competition among buyers for properties, this spring is shaping up to be a seller’s market.

That makes it crucial to have your finance sorted before you start making offers.

Pre-approval gives you the confidence to act and shows sellers you’re serious. If you’d like to be ready to move when the right property appears, get in touch today and we’ll help you line up the right finance.