October's Surge: Australian home values jumped 1.1% in October 2025, marking the strongest monthly gain since June 2023 and pushing annual growth to 6.1%. The median dwelling value increased by just over $10,000 in a single month.

Every City is Rising: All capital cities and regional areas recorded growth, ranging from Perth's impressive 1.9% surge to Hobart's modest 0.3% gain. Combined capital cities saw dwelling values rise approximately $53,700 since February's first rate cut.

What's Driving It: Lower interest rates (down from 4.35% peak), severe supply shortages with listings 7.6% below last year, record immigration, and first home buyer incentives are creating a perfect storm for price growth.

The Reality Check: While exciting for homeowners, this surge is making affordability worse. Experts warn we're entering a "government-backed property bonanza" as expanded first home buyer programs flood the market with minimal supply response.

October 2025 will be remembered as the month Australia's housing market officially shifted into high gear.

CoreLogic's Home Value Index surged 1.1% in October, marking the strongest monthly gain since June 2023 and confirming what many suspected: we're in a new property growth cycle.

Across the combined capitals, the 1.1% gain equates to an increase of just over $10,000 in the median dwelling value over the month. Since February, capital city dwelling values are up 5.9%, or approximately $53,700.

Let that sink in: if you owned an average-priced home in an Australian capital city in February, it's worth $53,700 more today. That's the price of a decent new car — gained in just eight months.

Monthly gains have been broad-based, with every capital city and rest of state region recording a monthly rise in value, ranging from a 1.9% surge in Perth to a 0.3% rise across Hobart.

Perth continues to be Australia's strongest property market, with property values rising by 82.7% over the past five years. The Western Australian capital benefits from:

Among Perth suburbs experiencing the fastest price growth in the past 12 months are Belmont-Victoria Park ( 11.4%), Kwinana ( 9.6%), and Armadale ( 9.1%).

Several powerful forces are combining to drive prices higher:

1. Interest Rate Cuts

The Reserve Bank of Australia began cutting rates in February 2025, bringing them down from the 4.35% peak. This clear upturn........

© International Business Times