The pace of property price growth increased in the second quarter of 2025, with the latest data showing that dwelling values are up for a fifth consecutive month.

Nationally dwelling values rose 1.4% in the June quarter, compared with 0.9% in the previous quarter. The latest results mean all capital city markets have achieved price growth in the past 12 months, with the smaller capital cities achieving the most significant gains.

Cotality data says Darwin median dwelling values are up the highest at 4.9%. Hotspotting’s Winter 2025 Price Predictor Index (PPI) has identified Darwin as an “undeniably hot market”. It says Darwin is now the hottest market in Australia with rising sales activity and solid price growth after a long period of sub-par performance.

The Cotality data shows that dwelling values have increased by 2.1% in the past quarter in Perth and 2% in Brisbane. Canberra is up 1.3%, while Sydney, Melbourne and Adelaide are all up by 1.1% and Hobart is up 0.9%.

While the combined capital cities have achieved quarterly and yearly growth, the combined regional markets are still outperforming them. Over the past 12 months, combined regional dwelling values have risen by 5.5% compared with 2.7% for the combined capital cities.

Cotality research director, Tim Lawless, says a range of factors are set to shape housing market outcomes over the rest of the year. “Persistently low levels of new housing supply are likely to support values. Lower debt servicing costs, along with reduced cost-of-living pressures, should support consumer sentiment and high commitment decision making, working in favour of housing demand,” he says.