How much for a property in Australia now?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Australia. If you'd like to learn more about us, you can check our presentation page.

What property type should you consider—house, apartment, townhouse, new build, or off-plan?

Houses remain the most popular choice for families and renovators, but prices have become increasingly expensive in major capitals like Sydney where median prices exceed $2 million as of September 2025.

Apartments and units are predicted to outperform houses in percentage growth due to better affordability, with median apartment prices in Sydney ranging from $850K to $900K. These properties typically offer rental yields of 3-5%, making them attractive for investors seeking cash flow.

Townhouses represent the fastest-growing segment in medium-density housing, particularly appealing for modern lifestyles in inner and middle-ring suburbs. They offer a compromise between house and apartment living, typically priced between $1.2M-$1.8M in Sydney.

New builds command premium pricing (typically 10-20% above existing stock) but offer modern amenities and warranties. Off-plan properties carry higher risks but can provide future growth potential, though buyers should be cautious about settlement delays and market changes.

It's something we develop in our Australia property pack.

Which city and specific suburbs should you target, and why those areas?

Sydney, Melbourne, Brisbane, and Perth remain prime targets for property investment, though affordable suburbs in Western Australia, South Australia, and North Queensland are currently outperforming major capitals in growth rates.

Hot suburbs showing rapid price increases include Frankston in Melbourne, Gold Coast areas, Adelaide suburbs, Bronte and North Bondi in Sydney, and St Johns Park in western Sydney. These areas benefit from infrastructure investment and lifestyle appeal.

Premium suburbs like Rose Bay and Bellevue Hill command $2-4 million medians but offer prestige and proximity to water. Up-and-coming areas like Frankston and Bronte range from $800K-$2M and show 6-9% annual growth due to transformation and infrastructure upgrades.

Budget-friendly suburbs in western Sydney and outer capitals like St Johns Park offer entry points from $700K-$1.1M with 4-7% growth and higher rental yields of 4-6%.

What's your primary goal—live in it, rent it short term, rent it long term, or buy to renovate and resell?

Owner-occupiers should favor lifestyle suburbs near coast or parkland, with remote work trends boosting regional appeal for those seeking better value and lifestyle balance.

Long-term rental investors should focus on suburbs with high rental yield and continuing demand, with apartments and townhouses preferred for consistent cash flow. Growth corridors and affordable suburbs perform well for long-term rentals.

Short-term rental strategies thrive in tourist areas and city hotspots, particularly near beaches, entertainment districts, or major attractions where nightly rates justify the higher management costs.

Renovation and flip strategies should target houses in gentrifying suburbs or those benefiting from infrastructure upgrades, where capital improvements can add significant value in 12-24 month timeframes.

What size and layout do you need (bedrooms, bathrooms, internal square meters, outdoor space, parking)?

Studio and 1-bedroom apartments (30-50 sqm) are ideal for investors seeking maximum yield in city locations, typically achieving 4-6% rental returns due to strong demand from young professionals and students.

2-bedroom apartments (60-80 sqm) offer the best balance for both living and investment, appealing to couples, small families, and sharers, with parking spaces adding $50K-$100K to value in major cities.

3-bedroom houses or townhouses (120-180 sqm) suit families and provide renovation potential, while 4+ bedroom properties (200+ sqm) target premium family markets but may have lower rental yields.

Outdoor space requirements vary by location—inner city buyers accept balconies or courtyards, while suburban buyers expect proper backyards. Parking is essential in most areas, with secure garage spaces commanding premiums over street parking.

What's your all-in budget today, including stamp duty, legal fees, inspections, and other closing costs?

How will you finance it—deposit amount, borrowing capacity, mortgage term, and fixed vs variable rate preference?

Most lenders require a minimum 20% deposit for best interest rates, though some accept 10% with lenders mortgage insurance adding significant costs to your monthly repayments.

Borrowing capacity is typically 5-6 times your annual income, though this varies based on expenses, debts, and lender policies. As interest rates are forecast to fall in 2025, borrowing capacity is expected to increase for most buyers.

Standard mortgage terms are 25-30 years, with shorter terms reducing total interest but increasing monthly repayments. Longer terms up to 40 years are available but significantly increase total interest costs over the loan life.

Fixed rates offer certainty but may be higher than current variable rates. Variable rates provide flexibility and potential savings as rates fall, but carry risk if rates rise unexpectedly. Many borrowers choose split loans combining both options.

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What ongoing costs can you comfortably carry (strata/body-corp, council rates, insurance, maintenance, utilities, management)?

Strata or body corporate fees for apartments and townhouses typically range from $4,000-$10,000+ annually, depending on building amenities, age, and management quality.

Council rates vary significantly by location and property value, ranging from $1,000-$3,000+ annually for most residential properties, with premium areas commanding higher rates for better services.

Building and contents insurance costs $1,000-$3,000 annually depending on property value, location, and risk factors like flood zones or bushfire areas.

Property management for rental properties typically costs 7-10% of rental income, while maintenance should be budgeted at 1-2% of property value annually for ongoing upkeep and repairs.

Utility connections and ongoing costs vary, with investment properties requiring landlord insurance adding $500-$1,500 annually to standard building insurance.

In your target areas, what are current example purchase prices by property type and typical size?

Sydney house prices average $2.04 million for median properties, with 3-bedroom houses typically costing around $1.75 million in middle-ring suburbs.

Melbourne house medians sit around $1.1-$1.3 million, while Brisbane houses average $800K-$1 million depending on location and proximity to the CBD.

Perth and Adelaide offer better value with house medians around $600K-$800K, though premium suburbs in all capitals command significantly higher prices.

Apartment prices vary dramatically by location: Sydney CBD studios start around $600K, 2-bedroom units $900K-$1.2M, while similar properties in Melbourne cost 20-30% less.

Regional markets offer the best value, with houses in growth regional centers like Geelong, Newcastle, or Gold Coast ranging from $400K-$800K depending on proximity to amenities.

For living vs short-term rental vs long-term rental vs flip, which property types and suburbs make the most sense right now, and why?

Living purposes favor lifestyle-oriented suburbs with good schools, transport, and amenities—think beachside areas, leafy inner suburbs, or family-friendly outer areas with new infrastructure.

Short-term rentals perform best in tourist hotspots like Bondi, St Kilda, or Gold Coast, plus inner-city apartments near business districts where corporate travelers stay regularly.

Long-term rental investments should target growth corridors with new transport infrastructure, university areas, or affordable suburbs with strong population growth and limited supply.

Renovation flips work best in gentrifying areas where infrastructure investment is planned or underway, targeting older houses in suburbs showing early signs of transformation and buyer interest.

Apartments and townhouses generally offer better rental yields for investment, while houses provide more renovation potential and long-term capital growth in established areas.

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.

Which suburbs are currently the most expensive, the up-and-coming, and the best value/budget-friendly—and what sets them apart?

Most expensive suburbs include Sydney's Rose Bay and Bellevue Hill ($3-6 million+ medians), Melbourne's Toorak and Brighton ($2-4 million), offering prestige, harbor or beach proximity, and established wealth.

Up-and-coming areas showing rapid transformation include Frankston (Melbourne), Bronte (Sydney), and various Adelaide suburbs, benefiting from infrastructure investment, gentrification, and lifestyle appeal driving 6-9% annual growth.

Budget-friendly options exist in western Sydney suburbs like St Johns Park, outer Melbourne areas, and regional centers, offering entry points from $400K-$800K with higher rental yields of 4-7%.

What sets apart expensive suburbs is established prestige, proximity to water or parkland, excellent schools, and limited land supply. Up-and-coming areas benefit from planned infrastructure, early gentrification signs, and improving amenities.

How have prices in your target areas changed over the past 5 years and the past 12 months, and what's driving those moves?

Over the past 5 years, top suburbs like North Bondi in Sydney and New Farm in Brisbane have seen increases of $1-2 million, with premium suburbs experiencing the fastest equity gains.

Most Australian capitals have maintained annual house price growth of 5-7% over the past decade, with some premium areas significantly outperforming these averages.

In the past 12 months, strong population growth and supply shortages have accelerated price increases, with Perth and Brisbane showing particularly strong performance due to interstate migration.

Key drivers include record population growth approaching 30 million, ongoing supply shortages in major cities, low unemployment, and improving consumer confidence as interest rate rises appear to have peaked.

It's something we develop in our Australia property pack.

What's the outlook—base-case price forecasts for 1, 5, and 10 years—and how do prices, yields, and ownership costs compare with similar global cities?

1-year forecast shows continued steady rises with likely 4-7% growth in most capitals, driven by falling interest rates boosting borrowing capacity and buyer activity.

5-year projections suggest median prices will rise 30-40% in most markets, with well-located properties in growth areas potentially doubling within 7-10 years based on current supply-demand dynamics.

10-year outlook points to up to 50% total growth as Australia's population approaches 30 million and supply constraints persist, particularly in major capitals with geographic and planning limitations.

Compared to global cities like Auckland, Vancouver, and London, Australian property prices and ownership costs are broadly similar, but affordability challenges remain significant due to rapid population growth and constrained supply.

Rental yields in Australia (3-6% for most properties) are competitive with similar global cities, while ownership costs including stamp duty make Australian property relatively expensive to acquire compared to other 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.

Sources

1. Capital Properties - 2025 Australian Property Trends
2. InvestorKit - 7 Trends That Shape Australia's Property Market in 2025
3. RealEstate.com.au - Australia's 50 Supercharged Suburbs for Price Growth
4. Property Update - Australian Property Market Predictions
5. RealEstate.com.au - Suburbs Bracing for Major Price Growth
6. Property Update - House Prices in Australia Over the Last 10 Years
7. KPMG - Residential Property Market Outlook January 2025
8. RealEstate.com.au - How Home Prices Have Boomed in the Past Five Years