Australia’s residential property market continues to see price growth, with new data showing a 3.91% increase in home values over the past 12 months.

March’s modest gains have reinforced this upward trend, making property investment an increasingly attractive prospect.

PropTrack data highlights that regional property markets are outpacing capital cities in annual price growth.

Regional Western Australia led the way with a 12.3% increase, followed closely by Regional South Australia at 11.5%.

Melbourne’s market is showing signs of recovery, with a 0.1% price rise in March softening its annual decline to just -2.4%.

Among the capital cities, smaller markets have delivered the strongest growth in the past year, with Adelaide leading at 11.3%, followed by Perth (11.2%), Brisbane (8.4%), and Darwin (5.1%). Sydney rose by 2.9%, Hobart by 2.2%, and the ACT by 0.9%.

PropTrack senior economist Eleanor Creagh notes that February’s rate cut has boosted borrowing power and buyer confidence, driving renewed demand and reversing earlier price declines.

With prices in both capital and regional markets at record highs, investor interest remains strong.

The unit market has also performed well, with median prices up 4.5% over the past year. Brisbane led the charge with a 14.8% increase, followed by Perth (14.4%) and Adelaide (11.3%).