Record High Australian House Prices Exceed $11 Trillion
Record High Australian House Prices Exceed $11 Trillion
1
Australia’s housing market has reached a significant milestone, with the total value of housing stock hitting $11.3 trillion as of April 2025.
According to Cotality, formerly CoreLogic, the average home is now valued at $1 million, underscoring the considerable growth in property values.
Notably, a staggering 34.4% of homes nationwide are now priced above $1 million, a record high as reported by Cotality. This trend is even more pronounced in capital cities, where 41.6% of homes exceed the $1 million mark. Eliza Owen, Head of Research at Cotality, links this increase to a robust 67.3% rise in housing values over the past decade.
The surging property prices are reshaping Australia’s economic landscape, with significant repercussions for both homeowners and prospective buyers. For current homeowners, increased property values may enhance equity and provide greater financial security. However, for potential buyers, particularly first-time entrants to the market, affordability remains a critical issue, potentially excluding many from homeownership. The broader economic repercussions also extend to the rental market, where rising property values can lead to increased rent prices, further impacting living costs for Australians.
The trajectory of Australia’s housing market suggests sustained high property values, prompting concerns and discussions among policymakers about potential interventions to address affordability issues. Market analysts are closely monitoring interest rate trends, which could influence future property price movements. Additionally, expert insights highlight the importance of strategic urban planning and investment in affordable housing to mitigate the effects of this trend.
Published:Friday, 16th May 2025 Source: Paige Estritori
The Australian Securities Exchange (ASX) experienced an uptick on Thursday following a US court decision impacting former President Donald Trump's tariff policies. This development ignited a rally in energy and information technology sectors, resulting in the ASX 200 index climbing by 12.9 points, or 0.15%, to close at 8,409.80. Simultaneously, the All Ordinaries mirrored this performance, concluding 12.90 points higher at 8,637.80. - read more
Westpac is facing scrutiny from the Finance Sector Union (FSU) as the bank plans to cut over 1500 jobs. This potential redundancy marks Westpac's most significant in the past decade, prompting the union to seek urgent clarification. The FSU also demands a halt to the proposed cuts, highlighting lack of consultation in the decision-making process. - read more
Colonial First State (CFS) has released new findings underscoring the financial strain Australians are facing due to prolonged elevated living costs. A survey involving 2,250 respondents highlighted that many individuals are having to forsake long-term financial aspirations to address immediate financial pressures. - read more
New research highlights that young Australians might find it more economical to service a mortgage than pay rent in over a thousand housing and unit markets across the nation. Conducted by Ubank, the study reveals a significant disparity, as rent prices have skyrocketed 39% over five years, reaching a median of $659 weekly, compared to a median mortgage repayment of $922. - read more
The financial advising sector in Australia is experiencing a resurgence of commitment from advisers, marking a significant shift in industry culture post-Hayne Royal Commission. According to findings from Adviser Ratings, nine out of ten advisers have expressed dedication to staying in the field, a notable increase from 74 percent in 2021. This trend was highlighted during a webinar as part of the lead-up to the 2025 Financial Advice Landscape report release. - read more
Budgeting is an essential skill for anyone looking to take control of their personal finances. It serves as the foundation for achieving financial stability and reaching your monetary goals. Yet, managing a budget can seem daunting, especially if you're unsure where to start or how to maintain one. In this article, we'll guide you through crafting a monthly budget that truly works for you, ensuring you not only manage your money effectively but also stress less about financial uncertainties. - read more
Investing can initially seem daunting, but it’s essentially the act of allocating money with the expectation of generating an income or profit over time. It's important because investing offers the potential for your money to grow and outpace inflation, ensuring you have a secure financial future. - read more
Superannuation, commonly known as 'super,' is a crucial part of planning for a comfortable retirement. It serves as a long-term savings measure, gradually increasing in value to support you once you stop working. But what exactly is superannuation? - read more
Starting a family is one of life's most rewarding experiences, but it also comes with a unique set of financial challenges. For young families in Australia, where the cost of living can rise quickly, having a solid financial plan is crucial. Financial planning is not just about managing money; it's about creating a sense of security and peace of mind for your loved ones. - read more
The relationship between our workplace location and the availability of transportation options has a significant impact on our commuting choices. Inner-city and CBD workers enjoy an extensive range of options for public transport, walking and cycling, due to the proximity of their residences to their place of work. - read more
Need Help Finding a Loan?
Find out now if you qualify and
compare rates, offers and options from multiple lenders - without a credit check!
All finance quotes are provided free (via our secure server) and without
obligation. We respect your
privacy.
Knowledgebase
Debt-to-Income Ratio (DTI): A personal finance measure that compares an individual's monthly debt payment to their monthly gross income.
