Australia’s housing market showed continued growth in November 2025, but momentum is easing. National home values rose 1.0% in November – a solid gain, yet slightly below October’s 1.1%. This strength is now concentrated in mid‑sized capitals. For example, Perth led with +2.4% growth, thanks to very tight supply (listings ~40% below average). In contrast, Sydney (+0.5%) and Melbourne (+0.3%) are lagging, constrained by record-high prices. Below is a quick snapshot of recent trends:

Source

• Mid-sized cities strong: Perth up 2.4%; other smaller capitals also gained ≥1%.

• Sydney/Melbourne slow: Sydney +0.5%, Melbourne +0.3%. High prices and tighter credit are capping growth.

• Low listings: Perth listings ~40% below long-term average; Sydney ~2.2% below average. Low stock means competition remains stiff.

These trends shape where we, as buyer’s agents, see the best opportunities:

• Mid-sized capitals are now prime targets. Cities like Perth (and potentially Brisbane or Adelaide) are outperforming the big markets. Perth’s tight supply and strong buyer demand have pushed prices up fastest. For investors or first-home buyers, this means a good growth outlook. Our advice: look at these markets for better entry prices and capital gains potential.

• Lower-quartile homes are hottest. Cotality’s data show values in the cheapest 25% of the market are rising fastest. That suggests entry-level properties are in high demand. For first-home buyers, this is a double-edged sword: there’s plenty of buyer competition, but it also means banks may favour these lower-priced loans. We help buyers find value in this segment before it jumps further.

• Sydney/Melbourne caution. These cities are still expensive, and growth has slowed. Because affordability has been “maxed out” (with very high price-to-income ratios), we expect only modest gains short term. However, supply in some suburbs is still tight. If you’re targeting Sydney or Melbourne, be patient and let us negotiate – prices aren’t falling but won’t rise as fast as elsewhere.

• Prepare for tight lending. Inflation is above the RBA’s target, and rates are likely to be on hold. Lenders remain cautious, especially with new APRA debt-to-income rules (though most borrowers aren’t near those limits). The bottom line: serviceability matters. Before you bid, get your finances sorted. We strongly recommend pre-approval and speaking with our mortgage brokers. This ensures you know your borrowing power and can act quickly.
  

At Prowealth Properties, our expert buyer’s agents track these shifts daily. We guide you to the suburbs where demand-supply is balanced in your favour. In Perth, we’re seeing rental yields and capital growth staying strong due to the supply crunch. In other capitals, we help you spot the suburbs where growth is likely to resume first.

Ready to take advantage? Our team will walk you through the current market and your options. Call us at +61 433 853 248 or book a free consultation online to discuss your buying strategy. We’ll help you check your borrowing power and start your shortlist. For ongoing tips and updates, follow Prowealth Properties on Instagram and LinkedIn.