Price growth: Adelaide claims top spot as Melbourne rebounds
Adelaide and Melbourne drove April’s national home price surge, pushing values to a new peak, while regional South Australia and Queensland recorded the highest growth across regional markets.
PropTrack’s latest Home Price Index report showed that Australia’s median home price increased to a new record high in April, rising 0.2 per cent over the month to reach a median value of $805,000.
The regional markets led the monthly gains to dwelling prices in April with combined growth of 0.3 per cent to a new peak median value of $668,000, while growth across every single capital city drove a 16 per cent increase to a new peak median dwelling value of $873,000 for the combined capitals.
Across the capital cities, the Adelaide market came on top for monthly dwelling gains, rising 0.3 per cent during April to a new peak median value dwelling of $804,000.
The monthly growth took Adelaide over the edge, registering the highest annual capital gain of 10.77 per cent, overtaking Perth’s yearly growth of 9.3 per cent.
REA Group’s senior economist, Eleanor Creagh, said Adelaide has consistently been one of the strongest capital city markets over the past five years due to affordability, tight supply, and strong population growth.
“These fundamentals have also fuelled demand across regional South Australia, where lifestyle appeal and value for money continue to attract buyers, particularly in the wake of increased workplace flexibility,” Creagh said.
The Melbourne market recorded the second-highest median dwelling value growth of 0.25 per cent over the month to a price point of $781,000, showing signs of recovery.
In Sydney and Perth markets, growth slowed to just 0.1 per cent, representing the joint-lowest price gains of April.
Although this recent monthly growth helped to bring the combined median dwelling value to register 3.35 per cent higher in the capital cities compared to 12 months ago, REA Group senior economist Anne Flaherty said that growth slowed in April compared to the first three months of 2025.
Flaherty said the broader slowdown hasn’t affected all capital cities equally, with price growth rates diverging across Australia’s multi-speed housing markets.
“The rate of price growth is moderating in outperforming cities such as Perth, Adelaide and Brisbane, while underperformers such as Melbourne, Canberra, and Sydney have started to pick up.”
“This is lessening the divergence in home price growth seen across the country over the past year,” Flaherty said.
Despite the price slowdown in Perth, Adelaide and Brisbane, Eleanor Creagh noted that the three cities have continued to record some of the "strongest annual gains nationally”.
She said additional cash rate cuts could further improve the three markets’ property prospects.
“Should the Reserve Bank lower the cash rate in coming months, it could reignite momentum as borrowing power improves,” Creagh said.
“For now, the slowdown is a response to affordability constraints following consistent strong price growth, rather than a sign that these markets have fully run their course,” she added.
Regional markets surge for price growth and popularity
Similarly, median dwelling value in the combined regional areas grew by 0.3 per cent to a new peak of $668,000, bringing regional property values to 4.61 per cent higher than levels from 12 months prior.
Across the nation, regional Queensland emerged as the top-performing market for price gains, with monthly growth of 0.49 per cent taking the market to a new peak of $727,000.
Eleanor Creagh said regional Queensland’s strong price growth resulted in “several key markets posting double-digit annual gains”.
“Townsville led the charge, recording a 22 per cent annual increase, followed closely by Central Queensland and Mackay-Issac-Whitsunday,” Creagh said.
“These regions are benefiting from a combination of relative affordability, strong rental yields, population growth and continued infrastructure investment,” she added.
Following closely behind was regional South Australia, which registered monthly growth of 0.48 per cent to a peak median dwelling value of $480,000, the second lowest median dwelling value across the nation after the regional market in the Northern Territory.
Even with the possibility of further potential interest rate cuts to boost borrowing capacities, Creagh emphasised that affordability remained a “key driver of buying behaviour in 2025” and will likely see many first home buyers gravitate towards more accessible markets.
“Regional areas in South Australia and Queensland are likely to benefit, with lower price points, lifestyle appeal and improving infrastructure continuing to attract buyers,” Creagh concluded.