Home prices across Australia continue their upward trajectory, with new data indicating that modest growth in March has driven overall prices up by 3.91% over the past 12 months.

According to PropTrack data, regional markets are leading the way, with annual price growth in regional Western Australia reaching 12.3%, and regional South Australia following closely at 11.5%.

Meanwhile, Melbourne’s housing market is beginning to show signs of recovery, with a 0.1% increase in March helping to soften its annual decline to -2.4%.

Smaller capital cities have been the strongest performers in the house market over the past year, with Adelaide leading at 11.3%, followed by Perth (11.2%), Brisbane (8.4%), and Darwin (5.1%).

Sydney recorded a 2.9% rise, while Hobart and the ACT saw increases of 2.2% and 0.9%, respectively.

PropTrack senior economist Eleanor Creagh attributes the renewed momentum to February’s interest rate cut, which has expanded borrowing capacity and boosted buyer confidence.

This has helped reignite demand and reverse the minor price declines seen in early 2025.

With property prices now at record highs across both capital cities and regional areas, mortgage lenders are witnessing increased demand for home loans, refinancing, and alternative lending solutions.

Borrowers are responding to price growth by exploring different mortgage structures, including fixed and variable-rate options, to navigate affordability challenges.

The unit market has also shown strong performance, with median prices up 4.5% year-on-year.

Brisbane leads with 14.8% growth, followed by Perth at 14.4% and Adelaide at 11.3%, reinforcing the trend of strong capital appreciation in select markets.