Australia’s property market has come roaring back. Home prices surged by the most in over two years in October 2025, according to data from Cotality (formerly CoreLogic). The combination of interest rate cuts, new first-home buyer incentives, and a chronic housing shortage has reignited buyer demand, pushing prices to new record highs.

Record-Setting Price Growth

National home prices rose 1.1% in October to reach a median value of A$872,538 ($566,975 USD) — the strongest monthly increase since June 2023.

• Perth led the charge with a 1.9% jump,
• Sydney rose 0.7%, and
• Melbourne, after months of sluggish recovery, gained 0.9%.

The latest surge cements Australia’s position among the world’s most resilient real estate markets, despite global economic uncertainty.

Rate Cuts and Government Support Drive Momentum

Since February 2025, the Reserve Bank of Australia (RBA) has implemented three rate cuts, easing borrowing costs and reigniting consumer confidence. Adding fuel to the fire, the government’s 5% deposit program for first-home buyers, launched on October 1, has opened the door for thousands of new entrants into the market.

This policy shift, combined with tight housing supply, has tilted the balance sharply toward sellers. Demand is now strongest in the lower and middle tiers of the market — segments previously priced out during the earlier rate-hike cycle.

Rising Rents and Persistent Supply Shortages

The rental market remains under extreme pressure. Rents increased 0.5% in the past three months, while the national rental vacancy rate held steady near record lows of 1.4%. With population growth and limited new construction, housing supply continues to lag well behind demand.

Experts warn that, despite the government’s support programs, these conditions could worsen affordability challenges for both renters and buyers.

RBA Faces a Delicate Balancing Act

The sharp rise in prices has complicated the outlook for the Reserve Bank of Australia. While the central bank sought to stimulate economic activity with rate cuts, the resurgence in housing could rekindle inflationary pressures, potentially limiting the scope for further easing.

Policymakers now face a dilemma: support growth without overheating the housing market.

Outlook: Strong but Uneven Recovery Ahead

Analysts say Australia’s property rebound reflects deep-seated demand rather than a temporary spike. However, gains remain uneven — Perth and Brisbane continue to outperform, while Sydney and Melbourne show slower but steady progress.

Cotality’s latest data underscores one clear trend: Australia’s housing recovery is firmly underway, but challenges in affordability and supply will remain key risks through 2026.

Conclusion

Australia’s housing market has once again defied expectations. With rate cuts, supportive policies, and robust demand, October 2025 marked the strongest monthly price gain in more than two years. Still, as the RBA weighs inflation risks and affordability concerns, the path forward will demand careful calibration. For now, buyers and investors alike are betting that the housing boom has only just begun.

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• Bid Value: A$722.9 million ($469.7 million)
• Bid Price: A$1.40 per share initially; fell to A$1.11 after USAC share decline
• Bidder: United States Antimony Corporation (USAC)
• Target: Larvotto Resources
• Offer Type: Non-binding indicative proposal
• Larvotto’s Decision: Rejected unanimously by board as undervalued
• USAC Ownership: 10% existing stake in Larvotto
• Reason: Declining implied valuation and strategic misalignment

Introduction: Larvotto Pushes Back Against U.S. Takeover Bid

Australian diversified miner Larvotto Resourcesannounced it has rejected a takeover proposal from U.S.-based United States Antimony Corporation (USAC), asserting that the indicative offer “materially undervalues” the company.

The proposal, received last week, valued Larvotto at A$722.9 million ($469.7 million) based on USAC’s five-day volume-weighted average price. However, after USAC shares fell, the offer’s implied value dropped to A$573.3 million, or A$1.11 per Larvotto share, reducing the bid’s attractiveness to shareholders.

Board’s Response: “Offer Materially Undervalues the Company”

In a statement to the Australian Securities Exchange (ASX), Larvotto said its Board of Directors unanimously rejected the proposal after reviewing independent financial and legal advice.

“After considering the offer in detail and taking into account the advice of our independent advisers, Larvotto’s Board formed the view that the offer materially undervalues Larvotto and has informed USAC accordingly,” the company said.

This rejection marks a strong stance from Larvotto’s leadership as it seeks to retain shareholder value amid a period of operational expansion and favorable market conditions for resource exporters.

About the Bidder: U.S. Antimony’s Strategic Intent

United States Antimony Corporation (USAC) is a U.S.-based producer of antimony, zeolite, and precious metals, with operations primarily in the United States and Canada. The company already owns a 10% stake in Larvotto, giving it a foothold in the Australian miner’s portfolio.

The proposed acquisition was seen as part of USAC’s broader plan to diversify geographically and secure access to strategic mineral assets in the Asia-Pacific region. However, the drop in its share price quickly eroded the bid’s perceived value.

Larvotto’s Growth Outlook: Confidence in Resource Expansion

Larvotto’s decision to reject the bid reflects growing confidence in its asset quality, project pipeline, and commodity exposure. The company’s diversified operations include copper, gold, lithium, and rare earth projects across Australia and New Zealand, positioning it well for the ongoing global energy transition.

With commodity prices recovering and investor appetite for critical minerals rising, Larvotto’s leadership is signaling that its long-term intrinsic value exceeds near-term takeover premiums.

Market Reaction and Valuation Concerns

Analysts noted that USAC’s bid relied heavily on its own share valuation, which fluctuated sharply during the offer period. The implied offer price declined over 20% in less than a week, raising doubts about both the stability of the deal and the seriousness of the bidder’s intent.

“The combination of share volatility and the relatively low cash component made this an unattractive proposal,” said one Sydney-based mining analyst. “Larvotto’s rejection suggests the company believes it can unlock higher value independently or through a future, stronger bid.”

Conclusion: Larvotto Stands Firm Amid Rising Global Interest

By rejecting USAC’s approach, Larvotto Resources joins a growing list of Australian miners choosing independence over foreign buyouts amid robust commodity cycles.

As the global race for critical minerals and metals intensifies, Larvotto’s move underscores a broader theme: resource nationalism and long-term value creation now outweigh short-term premiums.

Unless USAC returns with a materially improved offer — likely above A$1.50 per share — Larvotto appears committed to charting its own growth path in the international mining landscape.

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