Brett Warren , National Director – Metropole Group
The April 2025 CoreLogic Home Value Index has revealed a mixed bag for Australia’s major capitals, with Brisbane clearly leading the charge, while Sydney and Melbourne show more modest movements.
Let’s start with Brisbane, the star of the east coast this month. Dwelling values were up 0.4% in April, adding to an impressive 1.0% gain for the quarter and a whopping 7.8% year-on-year increase.
What’s behind Brisbane’s momentum? Strong demand and affordability relative to southern capitals are likely helping, as well as notable strength in the unit sector. In fact, Brisbane’s unit values have surged 1.6% over the past three months – an area where other capitals have shown weakness.
The city’s median dwelling value now sits just shy of $908,000, with solid rental yields at 3.7%, making it a compelling spot for both homebuyers and investors.
Moving south, Sydney showed a more subdued performance in April, according to CoreLogic. Values edged up just 0.2% in April – its third straight month in the black –but still remain 1.1% below their September 2024 peak.
For the quarter, Sydney saw a 1.0% rise, but over the past 12 months, growth has been minimal at 0.9%. Interestingly, Sydney houses are pulling more weight than units: house values climbed 1.4% over the quarter, while unit values slipped by 0.3%.
That growing divergence might be a reflection of the continued preference for more space post-COVID, as well as better value retention in detached dwellings. Sydney’s median dwelling value is the highest among the capitals at over $1.19 million, but affordability remains a major headwind.
Melbourne, meanwhile, also recorded a 0.2% monthly rise and a 1.0% gain for the quarter. However, the broader picture is less upbeat – values are still 5.4% below their 2022 peak, and prices have fallen 2.2% over the past year.
Like Sydney, Melbourne houses slightly outperformed units, though the difference was marginal this time around. Affordability pressures and slower population growth compared to Queensland could be factors weighing on Melbourne’s housing recovery.
The median dwelling value in Melbourne is now around $786,000, well below Sydney but still relatively high by national standards.
In terms of rental performance, Brisbane also wins again. Rents for both houses and units are rising faster here – up 3.0% for houses and 4.3% for units year-on-year. By comparison, Sydney and Melbourne are seeing rental growth of just 1.6% and 1.9% for houses respectively, showing signs of softening demand or stretched affordability in the rental sector.
Overall, Brisbane was clearly the outperformer among the three in April, according to CoreLogic, with strong momentum, robust rental returns, and a market still climbing toward its peak.
Sydney and Melbourne, while still posting positive growth, seem to be in a holding pattern – gaining slightly month to month but facing affordability and confidence challenges.
What’s next? With a potential rate cut in May and the federal election now behind us, market activity could see a bump in the coming months. For now, though, Brisbane is where the energy is.
