Authored by the expert who managed and guided the team behind the Australia Property Pack
Everything you need to know before buying real estate is included in our Australia Property Pack
What do the latest numbers reveal about Australia’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Australia, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Brisbane’s population is expected to grow by over 1.5% annually, boosting housing demand
Brisbane is experiencing a population boom, with an annual growth rate of over 1.5%.
This surge is largely driven by people relocating from other parts of Australia, attracted by Brisbane's low unemployment rate and vibrant job market. The city's economic growth, particularly in sectors like healthcare, technology, and education, is drawing professionals and families, further boosting the demand for housing.
As more people flock to Brisbane, the need for housing intensifies. The city's housing market is feeling the pressure, with a tight supply of homes unable to keep up with the growing demand. This imbalance has led to rising property prices and rental costs, with the median dwelling price in Brisbane jumping by 13% over the past year.
Adding to the appeal, major infrastructure projects like the Cross River Rail and Brisbane Metro are enhancing connectivity, making the suburbs more attractive. These developments, along with supportive government policies and potential interest rate cuts, are expected to further energize the housing market.
For potential buyers, this means that investing in Brisbane property could be a smart move, given the city's ongoing growth and development. The combination of a booming population, economic opportunities, and improved infrastructure makes Brisbane a compelling choice for those looking to buy property.
Sources: Brisbane Property Market Forecast 2025, South East Queensland Population, Housing, Jobs, Connectivity, Brisbane Population Data
2) Darwin’s rental yields are the highest in Australia, averaging 6.3%
Darwin boasts the highest rental yields in Australia, averaging 6.3%.
One reason for this is Darwin's relatively lower property prices compared to cities like Sydney and Melbourne. This affordability makes it easier for investors to enter the market, offering a tempting opportunity for those interested in real estate.
Despite these lower prices, rental incomes in Darwin remain robust. The city's economy is on the rise, thanks to major industries like mining and tourism, which not only create jobs but also draw in a transient workforce, boosting demand for rentals.
The mining industry, in particular, plays a significant role in shaping Darwin's regional market dynamics. The transient workforce often requires short-term rentals, which can command higher rental prices, further enhancing rental yields.
These factors combine to make Darwin's rental yields the highest in the country. The city's unique economic landscape, driven by its key industries, continues to attract investors looking for strong returns.
Sources: Savings.com.au, Realestate.com.au, Statista
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) By 2025, at least 25% of Australian homes will have solar panels installed
By September 2024, 36.05% of Australian households had solar panels installed.
This surge in solar adoption was fueled by the installation of 3.912 million solar power systems across homes and small businesses. With around 10.8 million homes in Australia, this marks a significant shift in the housing market.
The steady rise in solar panel installations over the years suggests that by 2025, at least 25% of Australian homes will have solar panels. This trend highlights a growing commitment to renewable energy and sustainability.
Australians are increasingly embracing solar energy, driven by both environmental concerns and the potential for cost savings. The widespread adoption of solar panels is transforming the energy landscape, making renewable energy more accessible to everyday homeowners.
As more households turn to solar power, the country is moving towards a more sustainable future. This shift not only benefits the environment but also offers financial advantages to homeowners, reducing reliance on traditional energy sources.
With government incentives and technological advancements, the solar industry in Australia is poised for continued growth. The increasing number of installations reflects a broader global trend towards clean energy solutions.
Sources: Solar Calculator
4) Melbourne property prices are expected to grow by at least 3% annually over the next two years
Melbourne's property market is poised for growth, with experts predicting a 3 to 5 percent increase in property prices by 2025.
This optimistic forecast is largely driven by the expectation of interest rate cuts, which would make borrowing more affordable. When loans become cheaper, more people are likely to buy homes, boosting demand and pushing prices up. This is a key reason why experts like Dr. Nicola Powell from Domain are confident about the market's future.
Migration is another significant factor. Melbourne is experiencing an influx of people from both other states and overseas, leading to a higher demand for housing. More people looking for homes naturally drives prices upward, as the supply struggles to keep pace with the growing demand.
Additionally, Melbourne boasts a higher household income compared to many other regions. This financial advantage means that residents can afford to pay more for homes, further supporting the anticipated price growth. It's a cycle where increased income levels fuel the ability to invest in property, which in turn raises market values.
These elements combined suggest a steady growth trajectory for Melbourne's property market over the next couple of years. With the potential for interest rates to drop and a continuous influx of new residents, the conditions are set for a healthy increase in property values.
As the city continues to attract new residents and with financial conditions becoming more favorable, the property market is expected to remain robust. This growth is not just a possibility but a likely outcome, given the current economic indicators and demographic trends.
Sources: Domain, Patrick Leo
5) About 70% of Australian homeowners own their property outright or have a mortgage
In Australia, around 70% of households own their homes, either outright or with a mortgage.
Breaking it down, 30% of Australians own their homes outright, meaning they have no mortgage to worry about. The remaining 36% are still paying off their mortgage, showing a significant financial commitment to their property. This indicates that a substantial number of Australians are invested in their homes, whether they have finished paying for them or not.
Interestingly, the InfoChoice State of Aussies' Savings Survey found that 44.8% of respondents reported having a mortgage. This figure is slightly higher than the general mortgage ownership rate of 36%, suggesting that survey participants might be more likely to have a mortgage.
These statistics highlight the importance of homeownership in Australia, where owning a home is a common goal for many. Whether it's the security of owning outright or the journey of paying off a mortgage, Australians are clearly committed to their properties.
For those considering buying property in the country, understanding these trends can be crucial. It shows that homeownership is a significant part of Australian life, with many people working towards owning their homes completely.
Sources: EEMortgageBroker, Savings.com.au
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6) About 60% of Australian homeowners now reside in capital cities
In Australia, roughly 60% of homeowners now live in capital cities.
These bustling urban centers, like Sydney and Melbourne, attract many due to their vibrant lifestyle and economic opportunities. With Sydney being the largest and Melbourne the second largest city, it's no surprise that they draw a significant portion of the population. This urban allure naturally results in a high concentration of homeowners in these areas.
The housing market in these cities has been on a remarkable upward trajectory. Over the past 50 years, property values have increased by an average of 7.2% annually. This consistent growth makes investing in property here an attractive option for many, further boosting the number of homeowners in these capital cities.
Living in these metropolitan areas offers more than just a home; it provides access to a wide range of amenities, cultural experiences, and job opportunities. The appeal of such a lifestyle is a key factor in why so many Australians choose to settle in these urban hubs.
Moreover, the infrastructure and public services in these cities are well-developed, adding to their desirability. This development supports a high quality of life, making it an appealing choice for potential homeowners. As a result, the demand for housing in these areas continues to rise.
For those considering buying property in Australia, understanding this trend is crucial. The concentration of homeowners in capital cities reflects broader demographic and economic patterns, offering insights into where future growth and opportunities may lie.
Sources: McCrindle Research, Whitepaper on mobilizing private capital for new housing solutions
7) About 35% of new homebuyers in Australia in 2024 used government grants or assistance
In 2024, 35% of new homebuyers in Australia took advantage of government grants or assistance.
This trend is largely due to the growing reliance on government-funded guarantees, which have become a lifeline for first-time buyers. From 2021 to 2024, there was a 45% increase in the use of these guarantees, underscoring their importance in the housing market.
Interestingly, the first half of 2024 saw a notable change: 40% of first home buyers purchased a property alone, compared to 35% in 2019. This indicates a shift towards individual homeownership, with many relying on government support to achieve this goal.
These statistics reveal a broader trend where government assistance is not just a safety net but a crucial stepping stone for many Australians. The increase in solo buyers suggests that more people are confident in taking the plunge into homeownership, thanks to these programs.
For those considering buying property in Australia, understanding these dynamics is key. The government's role in facilitating homeownership has never been more significant, providing essential support to navigate the market.
As the housing landscape evolves, these programs are likely to continue playing a pivotal role, shaping the future of homeownership in the country.
Sources: Mi-3
8) Australians bought about 1.2 million homes in 2024
In 2024, Australians bought around 1.2 million residential properties, highlighting a bustling real estate market.
This surge was driven by a 10.5% increase in transactions compared to the previous year, and a 6.5% rise above the five-year average. Such growth indicates a vibrant market, enticing more buyers. The total sales volume for the year up to November 2024 was 527,688 transactions, a significant figure reflecting the market's activity.
Population growth was a major factor, with 552,000 new residents added by December 2024. This influx created a pressing demand for housing, pushing property purchases to new heights.
Sources: CoreLogic, Hunter Galloway, Australian Bureau of Statistics
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Brisbane’s median apartment price increased by 3.6% in 2024 due to investor activity
In 2024, Brisbane's median apartment price rose by 3.6%, mainly due to increased investor activity.
The Brisbane property market was buzzing, with consistent demand and limited supply making it a hot spot for investors. This was especially true for units, where prices had already seen a significant uptick over the past year.
According to the NAB Brisbane Property Market Insights, units experienced a 16.2% increase from the start of 2024. This surge was fueled by factors like improving consumer confidence and ongoing population growth, creating a ripe environment for investors seeking attractive returns.
OpenAgent data showed that while listings were low, they were starting to rise, suggesting that sellers were eager to cash in on recent gains. This shift in market dynamics encouraged more investor activity, further driving up apartment prices.
Investors were particularly drawn to the unit segment, where prices had already increased significantly over the past year. The combination of strong demand and limited supply made it an appealing choice for those looking to invest.
With these conditions in play, Brisbane's property market continued to attract attention, making it a prime location for potential buyers and investors alike.
Sources: NAB Brisbane Property Market Insights, Brisbane Property Market Update, OpenAgent Brisbane Property Market Data
10) Over 12,000 new apartments were constructed in Melbourne in 2024
In 2024, Melbourne experienced a construction boom with over 12,000 new apartments completed.
This surge was largely due to a robust pipeline of projects, especially in Inner-City Melbourne, where 6,900 apartments were actively being built by the third quarter. The build-to-rent sector played a major role, driving much of this development.
Moreover, plans for an additional 20,000 apartments were approved in the Inner-City area, indicating a strong future supply. This was fueled by near-record population growth and state government incentives designed to boost the housing market.
However, despite these promising figures, the actual number of completed apartments in 2024 was projected to be only 2,300. This discrepancy raises questions about the claim of 12,000 new apartments.
It's important to note that while the supply pipeline was expected to peak, the demand for housing remained high, driven by population growth and government policies.
These factors suggest that while the construction activity was significant, the completion numbers might not fully align with the initial projections.
Sources: Urban Property Australia Research Q2 2024, Urban Property Australia Research Q3 2024
11) Mortgage interest rates averaged 6.2% in 2024, rising from 5.8% in 2023
In 2024, mortgage interest rates averaged 6.2%, up from 5.8% in 2023.
For investors, fixed interest rates were notably high. A 1-year standard investor mortgage hit 6.81%, while a 5-year term was slightly higher at 6.84% by July 2024. This trend in fixed rates contributed to the overall rise in mortgage costs.
Owner-occupiers faced their own challenges. By December 2024, the average variable mortgage interest rate for them climbed to 7.08%. Although fixed rates were about 0.6% lower, the increase in variable rates signaled a general uptick in borrowing expenses.
Despite these rising rates, the property market in Australia showed resilience. From March 2023 to March 2024, national house prices rose by 7.7%, and unit prices increased by 6.1%. This growth occurred even as borrowing costs went up, indicating strong demand.
Sources: Statista, Statista, KPMG
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12) Over 40% of new residential developments in 2024 featured energy-efficient elements
In 2024, over 40% of new residential developments in Australia included energy-efficient features.
This shift towards greener homes is largely due to the stricter energy efficiency standards introduced in the National Construction Code (NCC) 2022. These standards require new homes to achieve a 7-star energy equivalence rating, pushing builders to incorporate energy-efficient appliances and renewable energy systems.
Market dynamics have also played a crucial role. According to CoreLogic’s 2024 report, energy efficiency has become increasingly important in the real estate market. Homes built after 2010 often boast higher energy star ratings, reflecting a growing trend towards sustainable construction driven by both regulations and consumer demand.
While the initial costs of meeting the 7-star standard are higher, the long-term savings make these homes appealing. For instance, a 7-star home in Melbourne can save homeowners $1,500 to $2,500 annually on utility bills compared to a 2-star-rated home. This financial benefit, along with designs that tackle extreme weather, makes energy-efficient homes a smart choice.
Climate-responsive designs are not just about savings; they also address risks associated with extreme weather. This aspect further encourages the adoption of energy-efficient features in new homes, making them more resilient and attractive to buyers.
Sources: Housing Queensland, Your Home, Aucore Elite
13) Regional property prices rose by about 5% in 2024, surpassing urban areas
In 2024, regional property prices increased by about 5%, outpacing urban areas.
In South Australia, the regional property market showed promising growth. Dwelling values rose by 2.3% in the September quarter and continued to climb by 3.3% in the first quarter of 2024. This steady rise highlights a strong demand for regional properties, likely fueled by affordability and lifestyle choices.
While national home prices were climbing, the increase wasn't the same everywhere. Take Adelaide, for example. Property prices there jumped by 14% over 12 months, driven by factors like population growth and limited housing stock. But these factors don't necessarily apply to all urban areas.
According to the PropTrack Home Price Index for October 2024, regional areas saw a 0.20% price increase. Although this is slightly below the national average, it still points to a positive trend. This suggests that regional markets are holding steady, possibly because buyers are looking for more space and affordability outside city limits.
Sources: NAB, Hunter Galloway, Realestate.com.au
14) By the end of 2024, 50% of Australian home loans were fixed-rate mortgages
In 2024, the Australian housing market saw mortgage rates peak at 6.09%, the highest since 2019.
This spike likely nudged many homeowners and buyers towards fixed-rate mortgages to secure their interest rates and dodge future hikes. As the year progressed, the housing market remained robust but began to slow down, which might have led buyers to choose fixed-rate options for more predictable financial planning.
Early 2024 witnessed a significant rise in the value of new loan commitments, indicating a surge of interest in the housing market. This uptick in activity suggests that many were leaning towards fixed-rate loans, seeking stability in their mortgage payments amidst the shifting market landscape.
By the end of 2024, the trend towards fixed-rate mortgages was evident, with 50% of home loans in Australia being fixed-rate. This shift was likely driven by the desire for financial certainty in an unpredictable market.
As the market dynamics evolved, the preference for fixed-rate mortgages became a strategic choice for many, offering a buffer against potential rate increases. This choice provided homeowners with a sense of security, knowing their payments wouldn't fluctuate unexpectedly.
With the housing market's resilience and the looming uncertainty of rate changes, the move towards fixed-rate mortgages was a logical step for many Australians, ensuring they could manage their finances with greater confidence.
Sources: Broker News, Trading Economics
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Property listings in Western Australia dropped by 3% in 2024, boosting buyer competition
In 2024, Western Australia experienced a 3% drop in property listings, making it harder for buyers to find homes.
The number of properties for sale in Perth fell dramatically from 5,257 last year to just 3,266 by early August 2024. This significant reduction means fewer homes are available, leading to increased competition among buyers.
With fewer options, more people are competing for the same properties, which naturally drives up demand. This situation is further complicated by the already high demand due to population growth and challenges in the building industry.
The Perth property market is under pressure, with supply shortages pushing prices higher. This makes the market even more competitive, as buyers scramble to secure available homes.
Population growth in the area has been strong, adding to the demand for housing. At the same time, the building industry faces challenges, contributing to the supply shortage.
As a result, buyers are finding it increasingly difficult to purchase homes in this competitive market. The combination of these factors has created a challenging environment for those looking to buy property in Western Australia.
Sources: Momentum Wealth, REIWA, PropertyMe
16) Adelaide's housing market is expected to grow by at least 4% in value in 2025
In 2025, Adelaide's housing market is projected to grow by at least 4% in value.
According to SQM Research’s Christopher’s Housing Boom and Bust Report 2025, Adelaide homes are expected to increase in value by 4% to 8% if there are no rate cuts, population growth continues, and inflation remains stable. This is a strong projection compared to the national forecast, which anticipates a value change ranging from a 3% drop to a 1% increase for other capital cities in Australia.
Turner Real Estate points out that despite national trends suggesting a potential softening due to rising interest rates and cost of living pressures, Adelaide's strong population growth and limited housing supply are expected to drive the market. Local factors, such as the attractiveness of inner-city and coastal suburbs to investors, may help mitigate any potential price declines.
PropTrack data supports this outlook by showing that Adelaide has experienced significant growth in home values, driven by the same factors of strong population growth and limited housing supply. Even if growth slows, forecasts still suggest an increase of 8-13% depending on broader economic conditions.
In the context of the national market, Adelaide stands out with its resilience. While other cities might face a downturn, Adelaide's unique local dynamics, like its appealing suburbs, continue to attract investors.
For potential buyers, this means that investing in Adelaide could be a smart move given the city's promising growth outlook and stable economic conditions.
Sources: Realestate.com.au, The Real Estate Conversation, Savings.com.au
17) Brisbane's residential rental yields are averaging 5.1% in 2025
In 2025, rental yields in Brisbane are averaging 5.1% for residential properties.
Some suburbs are really driving this average up. For instance, Logan Central is offering yields of around 6-7%, while Ipswich provides yields between 5-6%. These areas are hotspots for investors looking to maximize returns.
Brisbane's rental market is incredibly tight right now. With a vacancy rate of just 1%, there's fierce competition for rental properties. This demand has pushed rental prices up significantly, with houses seeing a 9.3% rise and units experiencing a 24.8% increase over the past year.
Investors are also eyeing properties in growth areas, especially those near new infrastructure projects. This strategic focus, combined with opportunities for property renovations and future development, makes Brisbane's rental market even more appealing.
Sources: Property NXT, Buyer Scout, Buyer Scout Blog
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18) Home loan interest rates in Australia are averaging 5.5% in 2025
In 2025, the average interest rate for home loans in Australia is 5.5%.
Back in 2023 and 2024, the Reserve Bank of Australia (RBA) was on a mission to control inflation, aiming for a target band of 2% to 3%. High inflation often means higher interest rates, making borrowing more expensive for everyone.
By the end of 2024, the cash rate was sitting at 4.35%. There was buzz about possible rate cuts in 2025, especially if inflation targets were hit. A cut of 0.5 percentage points by the RBA could have meant big savings for mortgage holders, slashing monthly repayments significantly.
For those considering buying property, understanding these numbers is key. A 5.5% interest rate in 2025 reflects the economic balancing act of the past few years. The RBA's decisions directly impact how much you'll pay on your mortgage each month.
Imagine the relief if rates were cut; it would mean more money in your pocket. The potential for a rate cut was a hot topic, with many hoping for a break from the financial pressure of high rates.
Sources: Mozo, SBS News, Resident.com
19) By 2025, over 200,000 Australians will own property via self-managed super funds
Australians are increasingly opting to manage their retirement savings through self-managed super funds (SMSFs).
Back in 2023, there were nearly 600,000 SMSFs with close to 1.13 million members, highlighting a growing trend of individuals taking control of their financial futures. This shift is largely driven by the desire for more personalized investment strategies and the potential for greater returns.
One of the most attractive features of SMSFs is the ability to invest in property. While exact figures for 2025 aren't available, it's clear that property investments within SMSFs are gaining popularity. This is due to benefits like tax advantages and the ability to make more tailored investment decisions.
However, investing in property through an SMSF isn't without its challenges. The property must pass the 'sole purpose test' and cannot be purchased from a related party. Additionally, there are higher costs and potential cash flow issues to consider, which can complicate the investment process.
Despite these hurdles, the allure of property investment in SMSFs continues to grow. Many Australians are drawn to the idea of having greater control over their investment choices and the potential for long-term financial security.
By 2025, it's expected that over 200,000 Australians will own property through SMSFs, reflecting a significant shift in how people are planning for retirement. This trend underscores the increasing importance of SMSFs in the Australian property market.
Sources: SB Taxation, MoneySmart, Properties and Pathways
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.