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Australia's Housing Market Approaches $12 Trillion Milestone

Surge in Property Values Elevates National Market Worth

Australia's Housing Market Approaches $12 Trillion Milestone?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Australia's residential property market is on the brink of reaching a historic valuation of $12 trillion, marking a significant milestone in the nation's real estate sector.
Recent data from the Australian Bureau of Statistics (ABS) indicates that the total value of Australia's 11.41 million homes increased by 2.7% in the September quarter, adding $317 billion to the market's worth.
This surge brings the average price of residential dwellings to $1,045,400, reflecting the robust growth in property values across the country.

Queensland has emerged as a standout performer, becoming the second state after New South Wales to record a mean dwelling price exceeding $1 million. The state's average dwelling price rose by 3.5% in the September quarter, an increase of $33,900, underscoring the strong demand and rising property values in the region.

Several factors contribute to this unprecedented growth in the housing market. Interest rate cuts implemented by the Reserve Bank of Australia (RBA) earlier in the year have enhanced borrowing capacities and boosted buyer confidence, leading to increased demand for residential properties. Additionally, limited housing supply, strong population growth, and a tight rental market have further intensified competition among buyers, driving prices upward.

For prospective homebuyers, this rapid appreciation in property values presents both opportunities and challenges. While the potential for capital gains is attractive, the escalating prices may pose affordability issues, particularly for first-time buyers. It's crucial for buyers to assess their financial situation carefully, consider the long-term implications of their mortgage commitments, and explore various financing options to make informed decisions in this dynamic market.

In summary, Australia's housing market is experiencing remarkable growth, with the total valuation nearing $12 trillion. This trend highlights the resilience and attractiveness of the nation's real estate sector, offering promising prospects for investors and homeowners alike.

Published:Wednesday, 10th Dec 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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Finance News

Australia's Housing Market Approaches $12 Trillion Milestone
Australia's Housing Market Approaches $12 Trillion Milestone
10 Dec 2025: Paige Estritori
Australia's residential property market is on the brink of reaching a historic valuation of $12 trillion, marking a significant milestone in the nation's real estate sector. Recent data from the Australian Bureau of Statistics (ABS) indicates that the total value of Australia's 11.41 million homes increased by 2.7% in the September quarter, adding $317 billion to the market's worth. This surge brings the average price of residential dwellings to $1,045,400, reflecting the robust growth in property values across the country. - read more
Australian Property Borrowing Hits Record $98 Billion in Q3 2025
Australian Property Borrowing Hits Record $98 Billion in Q3 2025
10 Dec 2025: Paige Estritori
In the third quarter of 2025, Australian property buyers borrowed an unprecedented $98 billion, marking a significant surge in housing finance. This substantial increase, primarily driven by investors, has raised concerns among economists about potential regulatory interventions to curb the rapid growth. - read more
Adelaide's Housing Market Set to Outperform National Growth in 2026
Adelaide's Housing Market Set to Outperform National Growth in 2026
10 Dec 2025: Paige Estritori
Adelaide's housing market is poised for substantial growth in 2026, with forecasts predicting an increase in property values ranging from 9% to 18%. This anticipated surge positions Adelaide ahead of the national average, reflecting the city's strong market fundamentals and growing appeal among homebuyers and investors. - read more
APRA Implements Cap on High DTI Home Loans to Address Housing Market Concerns
APRA Implements Cap on High DTI Home Loans to Address Housing Market Concerns
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The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating emerging risks in the housing market. Effective February 2026, APRA will impose a cap on high debt-to-income (DTI) home loans, limiting banks to issuing no more than 20% of new home loans with DTI ratios of six times or higher. This measure applies to both owner-occupier and investor loans, excluding new housing developments. - read more
Australian Home Prices Continue Upward Trend Amidst Affordability Challenges
Australian Home Prices Continue Upward Trend Amidst Affordability Challenges
02 Dec 2025: Paige Estritori
In November 2025, Australia's housing market experienced a 1% month-on-month increase in home prices, bringing the national median value to A$888,941. This follows a 1.1% rise in October, indicating a persistent upward trend in property values. The growth was particularly pronounced in mid-sized state capitals, with Perth leading at a 2.4% increase. Sydney and Melbourne saw more modest gains of 0.5% and 0.3%, respectively. - read more


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