The Australia real estate market has seen a significant increase in new property listings in March 2025, as falling interest rates and renewed buyer confidence encouraged more homeowners to sell.
According to the latest REA Group Listings Report, capital cities experienced a strong uptick in new buy listings, driven by expectations that property prices in Australia will rise in the coming months.
Capital Cities Lead the Charge in Listings Growth
New data shows that new property listings in March were up 6.1% nationally compared to the same period last year, with capital cities rising by an impressive 12.9% year-on-year.
The strongest growth in new listings was recorded in:
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Adelaide: +27.3%
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Sydney: +17.7%
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Perth: +17.3%
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Canberra: +16.5%
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Melbourne: +13.5%
The only capital to record a decline was Brisbane, where new listings dropped 5.5%, largely attributed to cyclone-related disruptions.
Regional Australia Lags Behind
While metropolitan markets flourished, regional areas were less active. New listings across regional Australia fell 4.6% year-on-year. In particular:
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Regional Queensland: -6.7%
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Regional Tasmania: -6.5%
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Regional Victoria: -3.9%
Some outliers, like Regional Northern Territory, saw a spike of +20.6%, though total listing numbers remained small.
Interest Rate Cuts Fuel Seller Confidence
The listing surge follows the Reserve Bank of Australia’s (RBA) rate cut in February — the first since late 2020 — which brought the official cash rate down by 25 basis points to 4.1%.
REA Group’s Executive Manager of Economics, Angus Moore, noted that this shift has contributed significantly to seller optimism:
“Both Sydney and Melbourne have seen a run of strong activity in 2025 so far, suggesting continued vendor confidence amid rising home prices and falling mortgage rates.”
Total Listings Also on the Rise
In addition to new listings, total buy listings (including new and existing properties) rose 2.1% nationally and 6.8% across capital cities compared to March 2024.
Key contributors included:
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Canberra: +17.3%
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Sydney: +13.4%
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Perth: +13.3%
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Adelaide: +11.3%
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Melbourne: +3.0%
Brisbane remained flat, while Darwin experienced a significant drop of -28.1% in total listings year-on-year.
Easter Timing Skewed Comparisons
Analysts have noted that the timing of Easter plays a role in the year-on-year comparisons. In 2024, Easter fell in late March, which suppressed listing activity. In 2025, with Easter in April, March had more uninterrupted momentum for vendors.
More Buyers Enter the Market as Affordability Improves
Lower interest rates have also improved borrowing power, which is bringing buyers back into the market. Real estate agent Dib Chidiac from Sydney’s Inner West explained:
“Buyers are feeling more confident that rates will drop further. Sellers are now assuming they can get a better price — and that’s encouraging them to list.”
Chidiac also mentioned that while listing activity dipped slightly due to the holiday season and upcoming federal election in May, stock levels are expected to rise again starting May 3rd.
Property Prices Begin to Climb Again
According to the PropTrack Home Price Index, national home prices rose 0.3% in March, building on February’s gains.
Breakdown by capital:
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Sydney & Canberra: +0.5%
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Melbourne (units): +1.0%
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Canberra (houses): +0.7%
Senior economist Eleanor Creagh from REA Group expects price increases to continue at a moderate pace:
“We expect prices to keep lifting over the coming months, but the rate of growth is likely to be more modest compared to recent years.”
She attributes this to a combination of improved affordability, population growth, and limited housing supply.
More Rate Cuts Expected in 2025
Market analysts from all four major banks forecast additional interest rate cuts from the RBA:
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Westpac: 25 basis point cut in May
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NAB: Predicts a 50 basis point cut
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ANZ & CBA: Expect three 25-point cuts spread across May, July, and August
These cuts are expected to be driven by weaker global growth, easing inflation, and policy responses to international trade conditions.
What It Means for Buyers, Sellers & Investors
For anyone in the Australia real estate market, these developments point to a window of opportunity:
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Buyers: Benefit from increased listings and improved borrowing capacity
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Sellers: Act while confidence and demand remain strong
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Investors: Take advantage of market momentum and longer-term capital growth potential
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