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The Australian property market continues to show robust pricing across major cities and regional areas in 2025.
Property prices per square metre in Australia vary significantly based on location, property type, and market conditions, with Sydney commanding the highest rates at $3,200-$4,300 per square metre for new builds, while regional areas offer more affordable options starting from $1,700 per square metre.
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Australian property prices per square metre range from $1,700 in regional areas to over $4,300 in premium Sydney locations as of September 2025.
Major cities command premium pricing with Sydney leading at $3,200-$4,300/m², followed by Melbourne at $2,700-$3,800/m², while regional areas offer 30-50% lower rates.
| Location | Price per m² Range | Median Property Price |
|---|---|---|
| Sydney | $3,200-$4,300 | $1,722,443 |
| Melbourne | $2,700-$3,800 | $1,063,719 |
| Brisbane | $2,000-$3,200 | $1,060,311 |
| Perth | $1,700-$3,000 | $954,686 |
| Regional Australia | $1,700-$2,500 | $703,894 |
| Adelaide/Hobart | $1,700-$3,000 | $850,000-$900,000 |
| Townhouses (National) | $2,720-$3,184 | $950,000-$1,200,000 |
What is the current average price per square metre in Australia?
As of September 2025, the average cost to build a new home in Australia ranges from $1,700 to $4,500 per square metre.
Most typical new builds fall within the $1,800-$4,000 per square metre range, with significant variation based on location and specifications. Premium builds and architect-designed homes can exceed $5,000-$7,000 per square metre in major cities.
The national average reflects a diverse market where regional areas offer substantially lower costs compared to capital cities. Sydney commands the highest prices, while regional centres provide the most affordable building costs per square metre.
Construction costs have stabilized in 2025 after the volatility of previous years, though material costs and labour shortages continue to influence pricing across different markets.
These figures represent new build costs and should be considered alongside land prices when calculating total property investment costs.
How does the average price per sqm differ between major cities and regional areas?
Capital cities command significantly higher prices per square metre compared to regional areas, with differences ranging from 30-50% in most cases.
Sydney leads the market with build costs of $3,200-$4,300 per square metre, followed by Melbourne at $2,700-$3,800 per square metre. Brisbane sits in the middle range at $2,000-$3,200 per square metre, while Perth, Adelaide, and Hobart typically fall within the $1,700-$3,000 per square metre bracket.
Regional areas consistently offer better value, with comparable properties costing $1,700-$2,500 per square metre. For context, where Sydney averages above $3,000 per square metre, a comparable regional city might only cost $1,700-$2,500 per square metre for similar construction quality.
The median house price differential supports this trend, with capital cities averaging $1,044,867 compared to regional areas at $703,894. This substantial gap reflects both land costs and construction complexity in metropolitan areas.
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What are the average prices per sqm for different property types like apartments, townhouses, and houses?
Property type significantly influences pricing per square metre, with each category serving different market segments and locations.
| Property Type | Price per m² Range | Typical Size Range |
|---|---|---|
| Standard House | $1,700-$4,000 | 150-300m² |
| Townhouse | $2,720-$3,184 | 120-200m² |
| Apartment/Unit (New Build) | $2,000-$3,800 | 60-120m² |
| Luxury Custom Home | $5,000-$7,000+ | 200-500m² |
| Basic Regional House | $1,700-$2,500 | 120-250m² |
| Premium Apartment (CBD) | $4,000-$6,000 | 80-150m² |
| Standard Regional Unit | $1,800-$2,800 | 70-110m² |
How do prices vary depending on the size of the property, for example small units versus large homes?
Property size creates an inverse relationship with per-square-metre pricing, where smaller properties typically command higher rates per square metre.
Smaller units under 80 square metres often achieve premium per-square-metre pricing due to their prime locations and high-end amenities. These compact properties benefit from central locations where land costs are highest, driving up the per-square-metre calculation despite lower total purchase prices.
Large homes exceeding 250 square metres generally show lower per-square-metre build costs due to economies of scale in construction. However, the total investment remains higher due to the substantial floor area and typically larger land requirements.
Metropolitan units command more per square metre than suburban houses due to location scarcity and development costs. A 70-square-metre inner-city apartment might cost $4,000 per square metre, while a 200-square-metre suburban house could average $2,500 per square metre.
The size premium reflects both construction efficiencies and location desirability, making smaller properties attractive for investors seeking lower entry points with strong per-square-metre value appreciation potential.
What are some example purchase prices for typical properties in popular Australian cities?
Current median prices across Australia's major cities demonstrate the significant variation in property values and per-square-metre costs.
Sydney leads with a median house price of $1,722,443 and median unit price of $859,811, translating to $3,200-$4,300 per square metre for new construction. Melbourne follows with houses at $1,063,719 and units around $660,000-$705,901, representing $2,700-$3,800 per square metre.
Brisbane shows strong growth with median house prices reaching $1,060,311 and units averaging $850,000, corresponding to $2,000-$3,200 per square metre build costs. Perth maintains more moderate pricing with houses at $954,686 and estimated unit prices around $600,000, reflecting $1,700-$3,000 per square metre construction costs.
Regional Australia offers significantly better affordability with median house prices of $703,894 and units at $608,207. These areas typically achieve $1,700-$2,500 per square metre for comparable construction quality.
These examples demonstrate how location dramatically impacts both total purchase prices and per-square-metre valuations across the Australian property market.
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What is the total cost of buying a property when you include fees, taxes, and other hidden costs?
Property purchase costs extend well beyond the advertised price, with additional expenses typically adding 8-15% to the total investment.
Stamp duty represents the largest additional cost, ranging from 4-6% of the purchase price depending on the state. For a $1 million property, expect stamp duty of $40,000 or more. First-home buyers may qualify for concessions or exemptions in certain price ranges.
Legal and conveyancing fees typically cost $1,500-$3,000, while lender fees average $400-$800, though many lenders waive these fees during promotional periods. Building and pest inspections, property valuations, and initial insurance costs add another $1,000-$3,000 to upfront expenses.
Lender's Mortgage Insurance (LMI) becomes mandatory for deposits below 20%, potentially adding $10,000-$30,000 to the total cost for standard properties. Ongoing expenses include council rates, strata fees for apartments, and property management costs, typically totaling around $4,500 annually.
For new builds, base prices often exclude essential items like landscaping, driveways, and detailed finishes, which can add $20,000-$50,000 to the final cost depending on specifications.
How much would a mortgage typically cost for an average property purchase in Australia?
Mortgage costs vary significantly across Australian cities, with national averages reflecting the diverse property price landscape.
The national average mortgage sits around $600,000-$800,000 for owner-occupiers, generating monthly repayments of approximately $4,055 based on current interest rates of 6.23%. State variations show NSW averaging $4,885 monthly, Victoria $3,859, and Queensland $3,938.
Sydney exemplifies the premium end with average mortgages around $810,000, resulting in monthly repayments exceeding $5,000. This reflects the city's higher property prices and larger average loan amounts required for market entry.
Deposit requirements typically range from 10-20% of the property price, with 20% deposits avoiding LMI costs. For a $1 million property, buyers need $100,000-$200,000 in cash plus additional funds for settlement costs and initial expenses.
Regional areas offer more manageable mortgage costs, with average loans around $550,000-$650,000, translating to monthly repayments of $3,200-$4,000 depending on loan terms and interest rates.
Which areas are considered the most expensive, which ones are more budget-friendly, and which are up-and-coming?
Australia's property landscape divides clearly into premium, affordable, and emerging growth areas based on current pricing and future potential.
Most expensive areas include Sydney's eastern suburbs, Melbourne's inner-city precincts, and coastal hotspots like Byron Bay. These locations command premium prices due to established prestige, limited supply, and high lifestyle appeal.Budget-friendly options concentrate in outer metropolitan suburbs and regional centres. Areas like Campbelltown in NSW, Logan Central in Queensland, and northern Tasmania offer significantly lower entry points while maintaining reasonable amenities and transport links.Up-and-coming areas showing strong growth potential include Woolloongabba in Queensland, Clyde North in Victoria, Parramatta in NSW, and Coburg in Victoria. These suburbs benefit from infrastructure investment, proximity to employment centres, and improving amenity profiles.Rising star locations typically feature new infrastructure projects, university proximity, or hospital developments that drive long-term growth prospects. These areas often provide the best balance of current affordability and future appreciation potential.
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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.
How have property prices changed compared with one year ago and compared with five years ago?
Australian property markets have shown resilient growth patterns over both short and medium-term timeframes as of September 2025.
Year-on-year growth has been moderate, with most major cities experiencing 1-2% price increases. Sydney, Brisbane, and Perth have achieved record high prices in 2025, demonstrating continued market strength despite economic uncertainties and interest rate pressures.
Five-year growth tells a more dramatic story, with Sydney, Melbourne, and Brisbane all recording growth exceeding 40%. Some high-performing suburbs have experienced 60-80% increases over the past decade, particularly in areas benefiting from infrastructure investment or gentrification trends.
Recent market conditions have shown some short-term pauses or minor corrections in certain inner-city suburbs since 2023, but regional areas have demonstrated greater price resilience. This reflects changing buyer preferences and affordability constraints in premium metropolitan locations.
The overall trend remains positive across most markets, though growth rates have moderated from the explosive increases seen during 2020-2022, indicating a more sustainable pace of appreciation moving forward.
What are the forecasts for property prices in the next one year, five years, and ten years?
Property price forecasts for Australia indicate continued but moderated growth across different timeframes, influenced by immigration, infrastructure, and economic factors.
One-year forecasts predict mild growth of 1-5%, with capital cities expected to outperform regional areas. Market analysts anticipate continued demand pressure from population growth and supply constraints, though interest rate settings will influence buyer capacity and market timing.
Five-year projections show continued upward trends in high-demand suburbs and infrastructure corridors. Regional growth is expected to slow compared to recent years but remain positive, supported by lifestyle migration and relative affordability advantages.
Ten-year outlook remains optimistic, underpinned by Australia's immigration program, urbanization trends, and constrained land supply in desirable locations. However, price increases are expected to be less steep than the previous decade, reflecting affordability constraints and economic maturation.
Market cycles will continue, with upswings followed by stability periods or minor corrections. Investors should expect normal market fluctuations rather than consistent year-on-year growth, making location selection and timing increasingly important for optimal returns.
What are the smartest choices right now depending on whether you want to live in the property, rent it out short term, rent it out long term, or buy to resell later at a higher price?
Strategic property choices in Australia depend heavily on intended use and investment timeline, with each approach requiring different location and property type considerations.
For owner-occupiers, focus on lifestyle factors, growth suburbs, and proximity to work or schools. Choose established areas with good transport links and amenity access. Consider future family needs and resale potential even when buying for personal use.Short-term rental investors should target tourist hotspots and inner-city units, but carefully research local regulations and permit requirements. Coastal areas, ski regions, and CBD locations with strong tourism appeal offer the highest potential returns but require active management and regulatory compliance.Long-term rental investors benefit from growth corridors, university zones, and inner suburbs with consistent rental demand. Look for areas with improving infrastructure, employment growth, and demographic trends supporting sustained rental markets.Buy-to-resell strategies should focus on gentrifying areas or properties with value-add potential through renovation or development. Research planning regulations, infrastructure projects, and demographic shifts that could drive future value appreciation.Regional property purchases should target areas with infrastructure upgrades, population growth, or economic diversification projects that support long-term value growth and rental demand sustainability.
It's something we develop in our Australia property pack.
How do property prices in Australia compare with other big, similar cities around the world?
Australian property prices compete directly with other global major cities, often matching or exceeding international metropolitan areas on a per-square-metre basis.
Sydney and Melbourne property prices rival New York, London, and Singapore in desirable districts, particularly when factoring in construction quality and lifestyle amenities. Premium Sydney locations often exceed $4,000 per square metre, comparable to central London or Manhattan pricing structures.
Brisbane and Perth offer more competitive international pricing while maintaining high construction standards and lifestyle quality. These cities provide better value compared to similar-sized international centres in North America and Europe, particularly considering climate and amenity factors.
Regional Australian cities deliver exceptional value compared to smaller U.S. or European towns, offering higher baseline construction quality, larger land parcels, and better infrastructure at comparable price points. The regulatory environment and building standards provide additional value compared to many international alternatives.
When considering total cost of living, taxation structures, and lifestyle factors, Australian property prices represent competitive value in the global context, particularly for buyers seeking stable political environments and strong property rights protection.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Australian property prices per square metre reflect a mature market with significant regional variation and continued growth potential across different property types and locations.
Understanding these pricing structures and market dynamics enables informed decision-making for both owner-occupiers and investors seeking exposure to the Australian property market in 2025 and beyond.