Australia’s property market is showing no signs of slowing down, with median property prices rising for the seventh consecutive month. According to data from Cotality, values increased by another 0.7% in August, highlighting ongoing strength in the housing market despite broader economic challenges.
What’s Driving the Growth?
Cotality points to three key factors fuelling this steady rise:
1️⃣ Interest rate cuts – With three rate reductions in 2025, buyers’ borrowing power has improved significantly. Lower repayments mean people can afford to borrow more, which often translates to higher property prices.
2️⃣ Wages outpacing inflation – For the first time in years, wage growth is running ahead of inflation. This not only gives households more confidence but also increases their ability to secure bigger loans.
3️⃣ Demand outstripping supply – The number of homes being purchased is currently about 4% higher than the five-year average, but the number of properties being listed for sale is around 20% below average for this time of year. Fewer listings and stronger demand are creating intense competition in the market.
What This Means for Buyers
If you’re looking to purchase property, conditions are competitive. With more buyers chasing fewer homes, being prepared can make all the difference. One of the most effective steps you can take is securing a loan pre-approval before you start house hunting.
Here’s why:
✔️ Show you’re serious – Sellers and agents prefer dealing with buyers who already have their finance lined up.
✔️ Know your limit – A pre-approval gives you a clear idea of how much you can borrow, so you can focus on homes within your budget.
✔️ Act fast – In a hot market, properties sell quickly. Pre-approval means you’re ready to make a firm offer without waiting for the bank.
The Bottom Line
Australia’s housing market is being supported by a rare mix of rising wages, improved affordability from rate cuts, and persistent supply shortages. For buyers, preparation is key. Securing finance early could be the edge you need to compete in today’s fast-moving property market.
📲 Thinking of buying soon? Let’s talk about your borrowing options and help you get pre-approved before you start searching.
