The July 2025 Housing Chart Pack which is published by Cotality (CoreLogic) reveals a steady
and gradual strengthening of the national property market.
According to Cotality, the combined value of residential real estate remained unchanged at $11.5
trillion at the end of June 2025. However, national home values rose by 1.4% over the June
quarter, marking a pickup from the 0.9% growth in Q1 and a reversal of the -0.1% decline seen in
the final quarter of 2024.
Over the 2024–25 financial year, housing values increased by 3.4%, consistent with annual growth
recorded to May. This suggests that annual growth may be passing its low point, with momentum
expected to build in the second half of 2025.
Regionally, growth remained slightly stronger outside the capitals (1.6% vs 1.4%), although the
gap narrowed as capital cities posted higher monthly gains in May and June. Among the capitals,
Darwin led the way with a 4.9% increase in dwelling values over the June quarter, followed by
Perth (2.1%) and Brisbane (2.0%).
Sales volumes rose modestly, with 531,457 properties sold nationally in the 2024–25 financial
year—a 2.7% increase from the previous year. However, selling conditions became more
challenging, as the median time on market rose to 35 days, up from 29 days a year earlier.
New property listings remained subdued, with just 32,970 new listings nationally in the four weeks
to 29 June 2025 – the lowest volume for this time of year since 2020. This ongoing shortage of
fresh stock, combined with solid buyer demand, has pushed total listings 16.7% below the five-
year average.
Australia’s rental market is showing clear signs of cooling after several years of intense upward
pressure. Nationally, rental growth has eased considerably, with quarterly increases now the
slowest in years.
CoreLogic data shows that the national rental index rose just 1.3% in the June 2025 quarter—its
smallest second-quarter rise since 2020. Annual growth has also moderated to around 4.8%,
down from the double-digit growth seen in 2022 and early 2023.
This slowdown is largely due to rental affordability constraints, with tenants spending a higher
proportion of their income on housing, leading to behavioural shifts such as downsizing, household
sharing, and reduced demand in some segments.
Vacancy rates, while still low by historical standards, are beginning to rise modestly. This indicates
a slight easing in the supply-demand imbalance, though conditions remain tight, particularly in
capital cities.
South Australia, however, presents a more complex picture. While it broadly reflects the national
cooling trend, pressures remain acute—especially in Adelaide. Median weekly rents in the state
capital have increased by $205 since 2020, reaching approximately $580. As a result, rental
affordability has become a significant issue, with only around 20% of advertised properties
considered affordable for a median-income household.
That said, there are early signs of softening in some South Australian suburbs. Out of 248 suburbs
across the state, 102 recorded rent declines in the June quarter. In certain areas like Plympton
Park and South Plympton, rents fell by as much as 8–12%, providing some relief for renters.
However, Adelaide’s overall vacancy rate remains extremely tight—hovering around 0.4%—well
below the national average and pointing to ongoing supply shortages.
While house rents in many South Australian suburbs have begun to ease, unit rents have proven
more resilient, continuing to climb or remain stable as renters seek smaller, more affordable
options.
In summary, although Australia’s rental market has clearly entered a cooling phase, South
Australia—especially Adelaide—continues to face some of the country’s toughest affordability and
supply challenges. The moderation in rental growth offers some hope, but conditions remain
difficult for many tenants across the state.
VICTORIA’S RENTAL REFORMS – WILL THIS NEXT WAVE LAND IN SA?
Victoria’s rental reforms – the next wave is coming – Real Estate Business (accessed online REB
12/7/25)
Over the past six years, Victoria has seen more than 130 rental reforms pass into law, reshaping
the state’s rental landscape and leaving many investors feeling like the goalposts are constantly
shifting. This ongoing reform process while necessary for improving tenant safety and compliance
has created mounting pressures for landlords.
The next wave of reforms, set to take effect by November 2025, is aimed at making renting fairer
and more stable for tenants. However, there’s growing concern about the financial burden these
changes impose on property owners.
Estimates suggest that over 24,000 rental homes have already been lost from the market as
investors exit Victoria, wary of the tightening regulatory environment.
One of the key upcoming changes is a shift in how minimum rental standards are applied. From
November, properties must meet these standards including safety, heating, cooling, and insulation
before they can be advertised for lease, not just before a new tenant moves in. Additional
compliance requirements include from 30 October, ceiling insulation and draught-proofing will
become standard for new leases or when systems are replaced or repaired; and from 1
December, all window cords will need to be fitted with safety anchors.
A major legal change also comes into effect on 25 November, with the end of “no reason”
evictions. Rental providers will no longer be able to terminate a fixed-term lease without a valid
reason. While landlords will still be able to regain possession in cases such as moving in, selling,
or undertaking major renovations, they will face more rigorous scrutiny when issuing notices to
vacate.
Notice periods for both rent increases and evictions are also changing. From November, landlords
must give tenants 90 days' notice (up from the current 60) giving renters more time to plan and
adjust. Meanwhile, rental bidding, which has drawn criticism for exacerbating affordability issues,
will face tighter enforcement and harsher penalties.
Administrative processes are also being streamlined. A new standardised rental application form
will be introduced to protect renters' privacy. Landlords and agents will face strict limits on the
information they can request and must delete unsuccessful applications within 30 days (or six
months with consent).
To address long-standing delays in dispute resolution, a new body called the Rental Dispute
Resolution Victoria (RDRV) will be launched. This aims to handle common rental issues outside of
the overburdened Victorian Civil and Administrative Tribunal (VCAT), which continues to suffer
from backlog issues.
These reforms represent a major shift for both landlords and tenants. For rental providers, it
means being more proactive in ensuring compliance, managing maintenance, and navigating
more complex legal obligations. While the changes are expected to improve living standards and
security for renters, they come at a cost—one that may prompt further rent increases or sales of
investment properties. With many landlords already leaving the state, the full impact of these
reforms is yet to be seen.
Ultimately, balancing the need for tenant protection with the sustainability of property investment
remains a critical challenge. One would argue that to stabilise the market and restore investor
confidence, further safeguards and support measures for landlords are necessary – this will be a
cautionary tale for South Australia that has already followed Victoria down the path and in some
respects has gone further!
Thank you for your ongoing support!
Regards David, Benjamin & the Team at DB Philpott Real Estate
