Cotality Home Value Index November 2025: Why Land Prices Are Rising Faster in Some Cities

1 Dec

min read

Cotality Home Value Index November 2025: Why Land Prices Are Rising Faster in Some Cities

01 Dec 2025

min read

What does the latest Cotality Home Value Index mean for land prices and new housing supply?

The following statement can be attributed to Oliver Hume Chief Economist, Matt Bell.

The continued increase in dwelling prices reported in today’s Cotality Home Value Index release for November bodes well for increasing levels of new housing supply. This is increase in supply has been has been confirmed by recent Oliver Hume data and the HIA New Home Sales report.

Cotality’s Home Value Index for November rose 1.0%, down marginally on the 1.1% rise in October. The main story of the last three months is the strongest quarter of growth since July 2023 and the annual rate increasing from 4.1% to 7.5%. Even more dramatic is the gulf between Sydney and Melbourne (with lower and falling monthly rates of growth), and all the other capitals (with rising monthly growth rates above 1.0%).

Because new housing supply depends heavily on the gap between established home prices and new house-and-land prices, Melbourne’s weaker established market means its land prices will take longer to rise. In contrast, Perth, South East Queensland, and Adelaide are already rising strongly on the back of very strong established markets.
Auction clearance rates in the two largest auction markets in the country (Sydney and Melbourne) are clearly showing signs of easing and now sit just below long term averages.

Combined with the changing interest rate outlook of the last few months, this means we should expect some stabilisation or easing in the monthly rates of dwelling price growth, rather than the consistent increases we’ve seen so far this year.

But it’s hard to make a blanket statement that the new outlook for interest rates has significantly dampened the national house price outlook so quickly when six out of the eight capitals saw dwelling price growth rises and we still have three of those eight capitals with dwelling price growth in the teens.