An auction in Inner West Sydney.
Share and Follow

Property prices across Australia rose last month on the back of the Reserve Bank’s two interest rate cuts, and are set to keep increasing throughout the year.

Cotality’s Home Value Index showed prices were up 0.5 per cent nationwide in May to lift the median cost up to $831,288.

Darwin experienced the biggest jump, up 1.6 per cent, while properties in Perth rose 0.7 per cent for the month and 13.3 per cent for the last year, followed by Brisbane and Hobart (both 0.6 per cent), and Sydney (0.5 per cent).

An auction in Inner West Sydney.
The median price of a home in Australia is now sitting at more than $830,000. (Max Mason-Hubers)

Cotality said the driving force behind the price increases was interest rates, both the two already handed down by the RBA in February and May, and the market consensus that there are more still to come before the year is done.

“The continued momentum we’re seeing across almost all markets is no doubt being fuelled by rate cuts – both those that have already happened, but also potential cuts in the coming months,” research director Tim Lawless said.

“With interest rates falling again in May, we are likely to see a further positive influence flowing through to housing values in June and through the rest of the year.”

Despite the monthly rise, a downturn in prices in late 2024 means national prices were up 3.3 per cent for the last 12 months – the most modest increase since August 2023 – while home values in Melbourne (-1.2 per cent) and Canberra (-0.7 per cent) have dipped in the last year.

Meanwhile, almost 3000 auctions were held over the weekend, making it the second-busiest of the year and the busiest since Easter as sellers looked to cash in on the greater borrowing power the RBA’s latest rate cut provided buyers.

Share and Follow
You May Also Like
PM leads charm offensive as Wallabies clash with Fiji

Prime Minister takes on a friendly approach as Wallabies face off against Fiji

They are neighbours, friends and in many cases family, but now the…
The knuckledusters seized at Perth Airport (inset) and the domestic terminal.

Washington man faces court for reportedly having brass knuckles in carry-on for flight

A West Australian man is set to appear in Perth Magistrates Court…

A majority of older Australians support Labor’s proposal to tax supers exceeding $3 million

More than half of older Australians support increasing taxes on high superannuation…
Desperate search for 27 missing girls after flood disaster

Search Intensifies for 27 Missing Girls Following Flood Catastrophe

At least 51 people, including 15 children, were killed, with most of…
WASHINGTON, DC - MAY 30: Tesla CEO Elon Musk speaks alongside U.S. President Donald Trump to reporters in the Oval Office of the White House on May 30, 2025 in Washington, DC. Musk, who served as an adviser to Trump and led the Department of Government Efficiency, announced he would leave his role in the Trump administration to refocus on his businesses.  (Photo by Kevin Dietsch/Getty Images)

Elon Musk announces the creation of The America Party, further distancing himself from Trump

Tesla founder and billionaire Elon Musk has announced the name of his…
TEHRAN, IRAN - JULY 6: (----EDITORIAL USE ONLY - MANDATORY CREDIT - 'IRANIAN LEADER PRESS OFFICE / HANDOUT' - NO MARKETING NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS----) Iranian Supreme Leader Ayatollah Ali Khamenei makes his first public appearance since the war with Israel by attending an Ashura ceremony in Tehran, Iran, on July 6, 2025. Khamenei, who did not join the previous three nights of Muharram mourning events held at his residence on Palestine Street, participated

Iran’s top leader appears in public for the first time since the beginning of Iran-Israel conflict

Khamenei’s absence during the war suggested heavy security for the Iranian leader,…
Crew abandons ship in Red Sea after 'drone boat' attack

Crew leaves ship in Red Sea following a drone boat assault

Crew members aboard a Liberian-flagged ship set ablaze by a series of…

From saving to scrutinizing: Understanding the DNA testing business

There was something about the way three police officers surrounded Michael Usry…