Australia’s residential market has expanded to record scale, with the total value of dwellings exceeding $11 trillion and the mean dwelling price crossing $1.01 million in the June quarter of 2025. Importantly, values rose across every state and territory in that quarter, led by Queensland and Western Australia (both +2.7% q/q). That breadth of momentum signals a resilient cycle with demand re-accelerating as borrowing capacity improves.
Zooming out to the five-year picture since mid-2020, growth leadership has shifted decisively away from the traditional east-coast powerhouses. Perth is the standout performer, topping the capital-city league table with roughly 75–81% growth in dwelling values over five years, while Brisbane has also surged—up around 75% over the same period. These two markets continue to post some of the strongest quarterly gains in 2025, underscoring ongoing outperformance.
Western Australia (Perth): Supply remains tight and population inflows robust. Five-year value gains north of 75% put WA at the top of the cycle, with 2025 quarterly growth trends still among the nation’s strongest. For brokers, investor interest remains solid given relative affordability versus Sydney/Melbourne and healthy yields.
Queensland (Brisbane and regions): Queensland’s momentum has been broad-based. In the June quarter 2025, the state matched WA for the strongest value uplift (+2.7% q/q). Outside Brisbane, many regional centres (e.g., Rockhampton, Townsville) logged double-digit annual gains in 2025, reflecting investor demand and low vacancy. Expect continued enquiry from upgraders and interstate movers.
South Australia (Adelaide): Adelaide has been a quiet achiever through the cycle, with 2025 seeing units close the gap on houses as buyers trade off space for affordability and amenity. This tilt toward medium-density stock is widening the addressable borrower base—from first-home buyers to downsizers—supporting steady origination pipelines.
New South Wales (Sydney) and Victoria (Melbourne): While the five-year gains are smaller than in Perth/Brisbane, both cities re-entered growth in 2025 as the rate cycle turned and sentiment improved, with all capitals recording quarterly price rises for the first time in four years. Refinance and restructure conversations remain active as borrowers reset from the fixed-rate cliff and re-enter purchase cycles.
Macro drivers matter for conversion. The Reserve Bank’s pivot to easing in 2025 has materially lifted borrowing capacity and demand at the margin, supporting a broad-based upswing across houses and units. National home values notched consecutive monthly and quarterly gains through mid-2025, reversing the late-2024 soft patch. For brokers, that translates into more pre-approvals converting and a deeper pipeline across both owner-occupier and investor segments.
What this means for your book
1. Purchase readiness is back: More borrowers can qualify as rates step down and incomes catch up. Prioritise lapsed pre-approvals from 2024.
2. Investor resurgence in affordable leaders: WA and QLD yields plus capital-growth narratives are drawing investors—tailor servicing calculators to these markets’ price points.
3. Product fit for medium-density buyers: Adelaide’s unit market highlights demand for smaller deposits and LMI-efficient structures.
4. Equity-release opportunities: Five-year capital gains in Perth/Brisbane create scope for equity-funded upgrades or investment purchases; revisit 2020–2022 cohorts.
Bottom line: Australia’s market is bigger, more resilient, and geographically re-balanced. Focus your origination and refinance strategies where momentum is strongest (WA, QLD, SA), while re-engaging Sydney/Melbourne clients benefiting from renewed price traction and improved serviceability.
