Fueled by rapid population growth, housing shortages, and strong investor interest, Australia’s property market remains one of the nation’s most lucrative sectors. As of October 2024, the combined value of residential real estate reached an all-time high of $11 trillion, according to CoreLogic’s October Monthly Housing Chart Pack.
As buyers and investors look to 2025 for the future of metropolitan and regional real estate markets across Australia, one thing is certain — having the right strategy is the key to maximising opportunities, whether it’s looking for a new home or a new addition to a portfolio.
A Look at Property Trends Across Australian States
Australia’s property market has historically showcased a significant disparity between competitive regions like Sydney and Melbourne, in comparison to relaxed markets in other states and regional areas.
In 2024, however, the data shows a shift — while Brisbane, Adelaide, and Perth were once considered to be slower markets, each has seen surprising property value growth rates in the double digits.
The data below has been drawn from the October 2024 CoreLogic Home Value Index.
New South Wales / Sydney
Median price of houses in Sydney: $1,473,775 (+4.9% annual change)
Median price of units in Sydney: $860,849 (+3.5% annual change)
Median price of houses in Regional NSW: $769,593 (+3.5% annual change)
Median price of units in Regional NSW: $610,461 (+3.9% annual change)
The average home valuation in Sydney has risen throughout 2024, with some slow-down towards the end of the year (-0.5% growth for Sydney dwellings from Q3 to Q4). Demand for housing remains high amidst a clear shortage of housing supply, contributing to the steady rise in housing prices and a low vacancy rate of 1.7%.
Victoria / Melbourne
Median price of houses in Melbourne: $925,762 (-1.3% annual change)
Median price of units in Melbourne: $612,215 (-1.6% annual change)
Median price of houses in Regional VIC: $594,591 (-1.4% annual change)
Median price of units in Regional VIC: $403,993 (-2.2% annual change)
Property prices in Melbourne have not performed as well compared to other states — over the past 12 months, property values for houses and units in Melbourne experienced changes of -1.3% and -1.6% respectively. However, this trend is expected to break over 2025 and beyond, especially as the City of Melbourne’s forecast for the number of residents to double. To meet demand for housing, the city is undertaking plans to develop over 42,000 new dwellings.
Queensland / Brisbane
Median price of houses in Brisbane: $973,534 (+13.5% annual change)
Median price of units in Brisbane: $661,925 (+19.4% annual change)
Median price of houses in Regional QLD: $675,321 (+12.1% annual change)
Median price of units in Regional QLD: $661,792 (+11.2% annual change)
Brisbane’s property market has surprisingly performed well (14.5% annual growth across all dwellings) to become Australia’s second most expensive capital city in terms of median house prices. Though its housing values are still a far cry from Sydney, Brisbane’s ongoing development projects, rising population, and affordable cost of living place the city in a favourable position for buyers and investors.
South Australia / Adelaide
Median price of houses in Adelaide: $856,856 (+14.4% annual change)
Median price of units in Adelaide: $564,854 (+17.2% annual change)
Median price of houses in Regional SA: $446,337 (+10.8% annual change)
Median price of units in Regional SA: $298,151 (+7.1% annual change)
Adelaide’s property market showed impressive growth in 2024, with houses and units experiencing a 14.4% and 17.2% increase in median prices respectively. Despite this increase, housing prices still remain relatively affordable in comparison to Sydney and Melbourne. Most notably, the house value in Regional South Australia has increased by 66% since the onset of the global pandemic.
Western Australia / Perth
Median price of houses in Perth: $830,965 (+24.0% annual change)
Median price of units in Perth: $572,007 (+25.2% annual change)
Median price of houses in Regional WA: $547,602 (+19.4% annual change)
Median price of units in Regional WA: $354,055 (+15.5% annual change)
Perth’s property market showed the most significant property growth in 2024, with houses in the metropolitan area seeing a median 24% increase in prices. This growth, driven by sustained demand and limited housing supply, has pushed prices to a new record high for the city.
Australia’s Property Market Forecast for 2025
Australia’s property market is forecast to continue rising throughout 2025. According to Domain’s Property Price Forecast Report for FY2025, average house prices across all states are expected to increase between 4-6% in 2025.
This forecasted growth is largely due to anticipated interest rate cuts — these rate cuts are supported by forecasts from Australia’s big four banks. Should the interest rate cuts happen, it would restore buyer confidence and lead to a boost in property market activity and growth.
Forecasted growth for Australia’s property markets
- Sydney: 4-6% (houses and units)
- Melbourne: 3-5% (houses), -2-0% (units)
- Brisbane: 5-7% (houses), 7-9% (units)
- Adelaide: 7-9% (houses and units)
- Perth: 8-10% (houses and units)
However, the ongoing problem of limited housing supply remains — the low number of dwelling approvals each year and challenges in the construction sector are also likely to keep property prices high. There were 163,760 total dwelling approvals in the financial year of 2024, which is far below the National Cabinet’s goal of building 240,000 new homes each year to meet Australia’s rapidly growing population and demand for housing.
Investing in Australia’s property market in 2025
With the dynamic changes in property price growth across Australian states in 2024, investors looking to capitalise on the most lucrative opportunities will need to consider looking past their own backyard and across the border. As always, building a successful investment portfolio comes down to diversification — something that a buyer’s agent can help with.
As leading a buyer’s agent working across Australia’s biggest property markets including Sydney, Melbourne and Brisbane, Aus Property professionals can provide the right advice, support, and resources to find your next lucrative investment in 2025.
