Australian Property Prices Hit $1 Million Average: What Does It Mean for Buyers?
Q: What has happened to the average dwelling price in Australia?
A: For the first time ever, the national average price for residential dwellings in Australia has reached $1,002,500, according to the Australian Bureau of Statistics (ABS) March quarter data.
Q: How much did dwelling prices grow in the March quarter?
A: National dwelling prices rose by 0.7% in the March 2025 quarter.
Q: Which states are driving this growth?
A: The growth was mainly driven by Western Australia, South Australia, and Queensland. Queensland recorded the highest quarterly growth at +1.9%, followed by South Australia at +1.6%.
Q: How does this compare to last year's growth?
A: Annual growth in dwelling value has slowed to 5.9% in the March quarter of 2025, down from 9.5% in the same quarter in 2024.
Q: Which state is now the second-most expensive housing market in Australia?
A: Queensland has become the second-most expensive property market, behind New South Wales.
Q: What is the total value of residential dwellings in Australia?
A: The total value increased by $130.7 billion (1.2%) in the March quarter, bringing it to $11.4 trillion.
Q: What does the Real Estate Institute of Australia (REIA) say about this?
A: REIA president Leanne Pilkington noted that despite the $1 million average price, there are early signs of improving affordability due to easing inflation and falling interest rates.
Q: Are there still challenges in the housing market?
A: Yes, Pilkington emphasized that supply remains a major issue. She pointed out that Australia’s housing problems are structural, not just part of a cycle.
Q: What does this mean for first home buyers?
A: While borrowing conditions are improving slightly, the high average price continues to be a significant barrier for many first home buyers.