Australian Home Prices Hit Record High in May 2025
/What Record House Prices Mean for Buyers, Sellers, and Conveyancers
Australian property prices have officially reached a new high.
According to the latest data, the national median house price climbed to $831,288 in May 2025, up 0.5% from April—marking the fourth straight month of growth. This trend has been mirrored across all capital cities, with Darwin leading the pace at 1.6%, followed by Brisbane (1.4%) and Adelaide (1.3%). Even typically sluggish markets like Melbourne and Sydney posted modest gains.
Several key factors are at play:
Interest rate cuts from the Reserve Bank have brought some relief to buyers.
Strong population growth through immigration has intensified competition.
Tight housing supply—particularly for established homes—continues to create upward price pressure.
Post-election confidence is restoring momentum to parts of the market.
For vendors, this is a green light to prepare listings—particularly before winter slows activity. But it's not smooth sailing. Buyers remain price-sensitive and well-advised. Contracts need to be clean, realistic, and responsive to finance timelines.
From a conveyancing perspective, we are seeing a spike in contract negotiations around finance conditions, early access, and shorter settlements. Purchasers are acting quickly but also more cautiously, wary of overcommitting in a volatile lending environment.
In Victoria, some buyers are also hesitating due to the new land tax and planning overlays, which can significantly affect affordability and future development potential. These are not visible in the price data but certainly affect how purchasers structure their offers—and how we, as conveyancers, guide them.
What this market surge tells us is simple: certainty is a premium. Buyers want clear titles, reliable settlement dates, and no nasty surprises in Section 32s. Vendors who get ahead of disclosure obligations and engage a conveyancer early will attract more offers and faster transactions.
In times of record pricing, it’s the quality of contract preparation—not just the asking price—that often secures the deal.