CoreLogic’s latest Housing Value Index report for March 2025 highlights a subtle, yet positive, shift inAustralia’s propertymarket, offering a cautiously optimistic outlook for landlords. The report indicatesthat after a brief three‐month downturn, national housing values have begun tore-accelerate, with amodest monthly rise of 0.3% in February. This rebound is driven byimproved sentiment in the market,which is particularly evident in capital cities such as Melbourne and Hobart where monthly increasesreached 0.4%. These improvements are welcome news for landlords seeking long-term capital gainsfrom their investments.From a landlord’s perspective, the return of value growth in previously weaker markets is encouraging.Melbourne, having experienced ten consecutive months of declining values, now shows signs ofrecovery. Hobart, too, is emerging from a downturn, making these locations increasingly attractive forproperty owners looking to bolster their portfolios. Conversely, mid-sized capitals like Brisbane, Perth,and Adelaide are demonstrating lower monthly changes, with figures ranging from 0.2% to 0.3%.While these cities continue to record positive trends, they underscore the need for landlords toconsider the varied dynamics across different regions when assessing their investment strategy.Rental trends also feature prominently in the report. Nationally, rental values experienced a monthlyincrease of 0.6% in February–the strongest rise since May of the previous year. However, it isimportant to note that the annual growth in rents stands at 4.1%, which, although above pre-pandemicaverages, represents a marked slowdown compared to previous peaks. This deceleration in rentalincreases is attributed to seasonal factors, evolving household demographics, and the normalisation ofnet overseas migration. For landlords, this suggests that while the current rental environment remainsrobust, it is also subject to natural market cycles and demographic shifts.Gross rental yields have seen a modest uplift, with national yields inching upwards to 3.72%. This islargely due to rents rising at a slightly faster pace thanhousing values. Yet, there is notable regionalvariation: while areas like Adelaide and Perth continue to offer attractive yields, major cities such asSydney and Melbourne remain more modest in this regard. Landlords should therefore examine localmarketconditions carefully to align their expectations with realistic yield outcomes.The report further suggests that improved market sentiment, bolstered by expectations of furtherinterest rate cuts, is beginning to drive buyer activity and improve auction clearance rates. Forlandlords, such developments may translate into enhanced property values and increased transaction volumes, reinforcing the importance of timing in property investment decisions. At the same time,inventory levels in key markets have remained relatively elevated, particularly in Sydney, Melbourne,Hobart, and the ACT. This indicates that while property values are on a gradual upward trend, abalanced market exists, preventing overheating that could ultimately affect tenant affordability Overall, the CoreLogic report provides a nuanced picture. Landlords can take heart from the upwardtrend in property values and modest improvements in rental yields, yet it remains essential to balancethese positives with sensitivity to tenant affordability concerns. As market conditions continue toevolve, a measured, region-specific approach will be key in ensuring that investments remain sustainable and that the broader community’s needs are duly considered.