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Australia's property market in September 2025 presents a complex landscape with significant price variations across states and property types.
The national median house price has reached $912,563, while apartments and units average $690,011, creating distinct investment opportunities for different buyer profiles and budgets across major cities and regional areas.
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Australian property prices vary dramatically between cities, with Sydney leading at $1.53 million median house price, while Darwin offers the most affordable market at $642,000.
Houses command a 32% premium over apartments nationwide, and total buying costs including fees and taxes can add 6-10% to the purchase price for residents, more for foreign buyers.
| City | Median House Price | Median Unit Price | Annual Growth Rate |
|---|---|---|---|
| Sydney | $1,525,956 | $868,341 | 4.2% |
| Melbourne | $952,399 | $621,281 | 3.8% |
| Brisbane | $1,019,865 | $727,110 | 6.1% |
| Adelaide | $895,726 | $611,471 | 7.2% |
| Perth | $869,689 | $615,528 | 5.8% |
| Canberra | $984,723 | $591,570 | 4.1% |
| Darwin | $641,997 | $390,863 | 2.3% |
What's the current average property price in Australia?
As of September 2025, the national median house price in Australia stands at $912,563, while apartments and units average $690,011.
Capital city houses command significantly higher prices at $1,044,867 median, compared to regional areas where the median house price is $703,894. This represents a substantial urban-rural price gap that continues to widen across most states.
The Australian residential property market shows clear segmentation between metropolitan and regional markets, with capital cities driving national averages upward. Sydney remains the most expensive market with median house prices exceeding $1.5 million, while Darwin offers the most affordable capital city housing at around $642,000.
These figures represent actual transaction prices rather than asking prices, providing a realistic snapshot of what buyers are currently paying in the Australian property market.
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How do prices differ between houses, apartments, and townhouses?
Houses typically command a 32% premium over apartments and units nationwide, representing the largest price gap between property types in recent Australian real estate history.
The median house price of $912,563 significantly exceeds the apartment median of $690,011, with this premium varying considerably between cities. In Sydney, the gap between houses and apartments reaches approximately $657,615, while in smaller capitals like Darwin, the difference is around $251,134.
Townhouses generally price similarly to apartments in most markets, though they can command premiums in certain locations where land scarcity drives up attached housing values. The exact positioning depends on the specific suburb, with townhouses in inner-city areas often priced closer to houses, while those in outer suburbs align more closely with apartment pricing.
This pricing hierarchy reflects land values, with houses offering exclusive land ownership driving higher prices, while apartments share land costs among multiple owners, making them more accessible entry points into expensive markets like Sydney and Melbourne.
What's the breakdown of average prices across major cities and regional areas?
Sydney leads Australian property prices with a median house price of $1,525,956 and apartments at $868,341, making it the most expensive market nationwide.
| Location Type | Median House Price | Median Unit Price | Market Characteristics |
|---|---|---|---|
| Sydney Metro | $1,525,956 | $868,341 | Premium market, limited supply |
| Melbourne Metro | $952,399 | $621,281 | Established market, high apartment density |
| Brisbane Metro | $1,019,865 | $727,110 | Fast-growing, infrastructure investment |
| Perth Metro | $869,689 | $615,528 | Resource sector influenced, cyclical |
| Adelaide Metro | $895,726 | $611,471 | Affordable capital, strong growth |
| Regional NSW | $785,000 | $580,000 | Lifestyle markets, coastal premiums |
| Regional QLD | $650,000 | $480,000 | Mining towns, tourist areas |
| Regional Areas (National) | $703,894 | $608,207 | Diverse, lifestyle-driven demand |
How do property prices vary depending on surface size, like small, medium, or large homes?
Property prices in Australia correlate directly with size, though the price per square meter often decreases as total area increases, particularly for houses on larger blocks.
Small apartments (1-2 bedrooms, 50-80 sqm) typically cost $450,000-$650,000 in capital cities, while medium-sized units (2-3 bedrooms, 80-120 sqm) range from $600,000-$900,000. Large apartments or penthouses (120+ sqm) can exceed $1.2 million in premium locations.
Houses show greater size variation, with small houses (2-3 bedrooms, 150-200 sqm total) averaging $750,000-$950,000 in capital cities, medium houses (3-4 bedrooms, 200-300 sqm) ranging $900,000-$1.3 million, and large houses (4+ bedrooms, 300+ sqm) starting from $1.2 million and extending well beyond $2 million in premium suburbs.
Regional areas offer significantly more space for the same budget, with large family homes on substantial blocks available for prices that would only secure small apartments in Sydney or Melbourne. Construction costs currently range from $1,800-$4,500 per square meter depending on location and finish quality.
What's the total cost of buying a property including fees, taxes, and hidden charges?
The total cost of buying property in Australia extends well beyond the purchase price, with additional fees and taxes typically adding 6-10% for Australian residents and 13-18% for foreign buyers.
Stamp duty represents the largest additional cost, varying by state and ranging from 4-6% of the purchase price for residents. Foreign buyers face additional surcharges of 7-8% in NSW, Victoria, and Queensland, plus FIRB (Foreign Investment Review Board) fees starting at $14,100 for properties over $1 million.
Legal and conveyancing fees typically cost $2,000-$5,000, while mortgage-related costs including application fees, valuation, and insurance add another $3,000-$5,000. Building and pest inspections cost $500-$1,500, and don't forget moving expenses and immediate property setup costs.
Ongoing costs include council rates ($1,500-$4,000 annually), strata fees for apartments ($2,000-$8,000 annually), and land tax for investment properties. These ongoing expenses significantly impact the total cost of ownership and should factor into any purchase decision.
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How much would the average mortgage payment be on a typical property right now?
The average monthly mortgage payment in Australia as of September 2025 is $4,055 for owner-occupiers, based on current interest rates of approximately 6.23% and standard 30-year loan terms.
State variations are significant, with NSW averaging $4,885 monthly due to higher property prices, while Western Australia averages $3,650. Victoria sits at $3,859 and Queensland at $3,938, reflecting the different median property values across these markets.
These calculations assume a 20% deposit, meaning buyers need substantial upfront capital - approximately $182,000 for the national median house price. First-home buyers with smaller deposits face higher monthly payments due to lenders mortgage insurance and potentially higher interest rates.
Investment property loans typically carry interest rates 0.3-0.7% higher than owner-occupier rates, increasing monthly payments by $200-$400 for typical loan amounts. Current market conditions suggest these payment levels will remain elevated throughout 2025-2026 barring significant interest rate reductions.
What are the best options if you're buying to live in the property versus renting it out short-term, renting it long-term, or buying to resell later?
Your investment strategy should align with your financial goals and risk tolerance, as each approach requires different property selection criteria and market knowledge.
For owner-occupiers, focus on houses in established suburbs with good schools, transport links, and lifestyle amenities. Prioritize locations with stable price growth over high-yield areas, as capital growth typically outweighs rental returns for long-term wealth building. Consider suburbs within 30km of major employment centers.
Short-term rental strategies work best with apartments or townhouses in tourist destinations like Gold Coast, Byron Bay, or inner-city Melbourne and Sydney. These properties should feature modern amenities, professional management capability, and proximity to attractions. Expect higher yields but greater vacancy risk and management complexity.
Long-term rental investments perform well in university areas, growing outer suburbs, and regional centers with stable employment. Townhouses and units near transport infrastructure, universities, or hospitals provide steady tenant demand. Target gross rental yields above 5% while maintaining reasonable capital growth prospects.
Resale-focused strategies require identifying growth corridors, often in Brisbane's outer suburbs, Perth's infrastructure zones, or Adelaide's expanding areas. Look for properties under median price with renovation potential, or new developments in areas slated for major infrastructure investment.
Can you give me example purchase prices in different cities or neighborhoods?
Property prices vary dramatically between neighborhoods within the same city, offering different entry points for various budgets and investment strategies.
| City/Suburb | Median House Price | Property Type Focus | Market Character |
|---|---|---|---|
| Sydney - St Marys | $1,020,000 | Family homes | Affordable Sydney fringe |
| Sydney - Liverpool | $1,200,000 | Mixed housing | Infrastructure growth area |
| Brisbane - Nundah | $985,000 | Character homes | Inner-city lifestyle |
| Brisbane - Ipswich | $630,000 | New developments | Growth corridor |
| Melbourne - Frankston | $960,000 | Coastal lifestyle | Seaside suburbia |
| Melbourne - Brunswick | $870,000 | Inner-city units | Trendy, established |
| Perth - Joondalup | $720,000 | Modern suburbs | Northern corridor |
| Adelaide - Playford | $485,000 | Affordable housing | Northern growth |
Which areas are the most expensive, which ones are up-and-coming, and which ones are more budget-friendly?
Sydney's eastern suburbs, north shore, and inner west remain Australia's most expensive property markets, with median house prices often exceeding $2-3 million in premium locations like Mosman, Double Bay, and Paddington.
Up-and-coming areas show strong growth potential with current affordability. Ipswich in Queensland, Point Clare on NSW's Central Coast, and various Adelaide suburbs including Playford and Gawler offer significant upside. Regional Queensland towns like Gladstone and Mackay, plus WA's Geraldton, combine lifestyle appeal with growth prospects driven by infrastructure investment and population shifts.
Budget-friendly options include Darwin's metro area where median house prices remain below $650,000, Hobart's outer suburbs, and many regional centers across Queensland, NSW, and South Australia. These areas often provide better value per square meter and stronger rental yields, though with potentially slower capital growth.
The Gold Coast and Sunshine Coast have emerged as surprisingly expensive markets, now exceeding Melbourne and Canberra prices for many property types. This shift reflects lifestyle migration trends accelerated by remote work adoption and interstate buyer competition.
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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.
What are the smartest choices in today's market for someone looking to buy?
Brisbane, Perth, and Adelaide represent the smartest capital city choices for September 2025, offering strong growth momentum with better affordability than Sydney or Melbourne.
Brisbane's infrastructure investment pipeline, including Cross River Rail and Olympic Games preparation, supports continued price appreciation. Target suburbs like Ipswich, Logan, or Moreton Bay for maximum growth potential. Perth benefits from mining sector recovery and population growth, with northern suburbs like Joondalup offering excellent value.
Adelaide continues surprising investors with consistent growth above national averages while maintaining reasonable entry prices. Focus on northern growth corridors or established eastern suburbs for balanced risk-reward profiles.
Regional markets offer exceptional opportunities for buyers seeking lifestyle plus investment returns. Coastal Queensland towns, Central Coast NSW, and select Victorian regional centers combine amenity value with strong population growth driven by remote work trends and metro exodus.
Avoid Sydney and Melbourne unless you have substantial capital and seek long-term holds. Current affordability constraints suggest slower growth ahead, though these markets provide stability and liquidity advantages for sophisticated investors.
How have property prices changed compared to five years ago and compared to one year ago?
Australian property prices have experienced dramatic growth over the past five years, with many markets recording gains of 40-95% since 2020.
The Gold Coast leads five-year growth at 95%, followed by Sunshine Coast at 92%, demonstrating the powerful lifestyle migration trend. Adelaide recorded 75% growth, Sydney 61%, while Melbourne lagged at 17% due to extended lockdowns and apartment oversupply in certain areas.
Over the past year (July 2024 to July 2025), national prices grew 4.9%, with regional markets outperforming at 6.5% growth. This represents a moderation from the extreme growth rates of 2021-2022 but maintains solid appreciation above inflation.
Houses continue outperforming units by widening margins, with the gap reaching record levels. This trend reflects land scarcity in desirable locations and changing buyer preferences post-COVID, favoring space and privacy over apartment living.
Regional area outperformance reflects fundamental shifts in work patterns, lifestyle priorities, and relative affordability, suggesting this trend may continue despite some cooling in major capitals.
What's the forecast for prices in the next one year, five years, and ten years, and how does the Australian market compare with other big similar cities around the world?
Property price forecasts for Australia suggest moderate growth of 3-6% annually over 2025-2026, with second-tier cities and regional areas expected to outperform Sydney and Melbourne.
Five-year projections indicate potential value increases of 40-60% in most markets if current trends persist, with Adelaide, Brisbane, and Gold Coast likely leading growth. Sydney and Melbourne face affordability headwinds that may constrain growth to below-average rates, though infrastructure investment could provide support in specific corridors.
Ten-year outlooks depend heavily on population growth, infrastructure investment, and economic conditions. Climate change impacts may favor southern cities over northern regions, while continued decentralization could benefit regional areas with strong connectivity to major centers.
Internationally, Sydney ranks among the world's most expensive cities alongside New York, London, and Vancouver. However, other Australian capitals offer better relative value compared to equivalent global cities. Brisbane compares favorably to second-tier North American cities, while Adelaide and Perth provide exceptional value relative to their amenity levels.
Australia's property market benefits from stable institutions, strong population growth, and limited land supply in desirable locations. These fundamentals support long-term price appreciation despite short-term volatility and affordability challenges in premium markets.
It's something we develop in our Australia property pack.
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.
Australia's property market in 2025 presents distinct opportunities across different price segments and locations, with careful selection essential for success.
Smart buyers are focusing on infrastructure-supported growth areas while avoiding overpriced premium markets that may face affordability constraints in coming years.
Sources
- Your Mortgage - Median House Prices Around Australia
- Cotality - Monthly Housing Chart Pack August 2025
- Property Update - National Housing Market Update Australia
- Residential Attitudes - Building Costs Australia
- Taxes for Expats - Foreign Property Purchase Australia
- Wise Buy Group - Transfer Duty Rates 2025
- Canstar - Average Home Loan Australia
- Simply Wealth Group - Best Investment Cities 2025
- RealEstate.com.au - Hot Suburbs 2025
- RealEstate.com.au - Property Values 2030