The Australian property market has long been a subject of keen interest for both domestic and international investors. Known for its resilience and consistent growth over the long term, it presents a unique landscape shaped by a confluence of economic factors, demographic shifts, and government policies. As of mid-2025, the market continues to evolve, offering diverse opportunities across its various states and territories. This comprehensive guide aims to provide an in-depth analysis of the current state of the Australian property market, highlighting key trends, investment hotspots, and essential considerations for prospective investors. We will delve into official data and expert insights to paint a clear picture of where the opportunities lie and how to navigate this dynamic environment effectively.
Current Market Overview: A Snapshot of Growth and Value
Figure 1: Total Value of Dwelling Stock, Australia
Source: Australian Bureau of Statistics [1]
Further insights from CoreLogic indicate varying year-on-year changes in home values across capital city regions as of June 2025. While Sydney saw a modest 1.3% increase in its overall dwelling value, Melbourne experienced a slight decrease of -0.4%. In contrast, Brisbane and Adelaide demonstrated strong growth, with year-on-year increases of 7.0% and 8.0% respectively. Perth also showed significant appreciation at 7.0% [2].
Table 1: Australian Home Value Index – Monthly Values, Capital City Regions (June 2025)
| City | Home value index change (year-on-year) | Median value (property) | Median rental value (per week) |
|---|---|---|---|
| Sydney | +1.3% | $1,210,222 | $750 |
| Melbourne | -0.4% | $796,952 | $575 |
| Brisbane | +7.0% | $926,243 | $650 |
| Perth | +7.0% | $819,885 | $680 |
| Adelaide | +8.0% | $937,176 | $600 |
| Hobart | +2.0% | $677,390 | $550 |
| ACT | +0.3% | $855,197 | $620 |
| Darwin | +6.0% | $537,471 | $650 |
Source: CoreLogic [2]
Figure 2: Australian Property Value Index – Capital City Regions
Source: CoreLogic [2]