The latest CoreLogic Home Value Index (HVI) revealed a 0.4% increase in property values during the month, lifting the nation's median dwelling price to $820,331.
The monthly rise was broad-based, with gains recorded in every capital city except Hobart, where values fell by 0.4%.
Increases ranged from 0.2% to 1% across the other capitals.
Sydney and Melbourne continued their recovery, with values in both cities rising over the past two months following declines earlier in the year.
Sydney home values remain just 1.4% below their record high, despite a -2.2% drop between September 2024 and January 2025.
In Melbourne, where the downturn has been more prolonged since peaking in March 2022, values are still 5.6% below their peak.
Both cities carry the greatest weighting in the national index.
CoreLogic - soon to rebrand as Cotality - attributed March's rebound to "improved sentiment" and a "slight improvement" in borrowing capacity and mortgage serviceability, following the RBA's February rate cut.
"With the rate-cutting cycle expected to be drawn out, it will be interesting to see if this positive inflection in values can last in the face of affordability constraints," said CoreLogic Research Director Tim Lawless.
Despite the rebound, the property analytics firm was quick to describe the recovery as likely "temporary."
"On the upside, a gradual easing in monetary policy, cost-of-living relief, income growth, tight labour markets and improved sentiment are all likely to support housing sector activity," Mr Lawless said.
He noted however that given the drawn-out nature of the rate-cutting cycle, ongoing affordability issues, and other headwinds, any growth in home values is likely to remain contained.
Price gains in mid-sized capitals ease
While larger capitals regain momentum, mid-sized cities appear to be losing steam - although property values are still rising.
This trend is particularly evident in Perth, where downward revisions over recent months have nudged values slightly below their October 2023 peak (-0.05%).
On a monthly basis, Perth and Canberra recorded the slowest growth among capitals, both rising by just 0.2%. However, on an annual basis, Perth led the nation with an 11.9% increase in home values.
Since March 2020, Perth home values have surged by 75.4% - the strongest five-year growth among the capitals.
Regional markets continue to outperform capitals
As seen in previous months, regional property markets-particularly in WA and Queensland-continued to outpace capital city growth, with a 0.5% monthly rise compared to 0.4% in the capitals.
"However, the growth trajectory looks to be converging as the capital city trend accelerates and the regional trend holds steady," CoreLogic noted.
Western Australia's Mid-West region, which includes Geraldton, posted the strongest annual growth at 25.4%. It was followed by Townsville (23.5%), Gladstone (22.2%), Central Highlands (21.8%), and Mackay (20.2%) in Queensland.
Growth evens out across price points
Since mid-2023, lower quartile homes have led price growth, but that trend is beginning to converge across market segments.
This shift is particularly evident in Sydney, where prices of top-end homes rose by 0.6% over the past three months, compared to just 0.3% for homes in the lower quartile.
CoreLogic has previously noted that higher-end markets, especially in Sydney and Melbourne, tend to respond more strongly to cash rate reductions.
"Most of the remaining capitals continue to see the lower quartile recording a higher rate of change relative to the upper quartile; however, the gap is narrowing," Mr Lawless said.
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