Housing boom sends dwelling price to $1m

The Australian Bureau of Statistics’ latest figures have shown that the national mean price of residential dwellings has reached the million-dollar mark for the first time in the March quarter.

In total, national dwelling prices increased by 0.7 per cent over the quarter, reaching a mean price of $1,002,500.

ABS head of finance statistics, Dr Mish Tan, said that while dwelling growth was recorded across the country, Western Australia, South Australia, and Queensland had been driving the increase.

“Despite the quarterly rise in national dwelling value, annual growth in the March quarter slowed to 5.9 per cent. This was down from 9.5 per cent in March quarter 2024,” Tan said.

“Quarterly growth was seen across all states and territories, and most evident in Queensland (+1.9 per cent) and South Australia (+1.6 per cent).”

ABS data showed that Queensland is now the second-most expensive property market behind NSW.

Additionally, figures showed that Australia’s residential dwelling value increased by $130.7 billion (1.2 per cent ) to reach $11.4 trillion in the March quarter.

Real Estate Institute Australia (REIA) president, Leanne Pilkington, said that despite average dwelling prices hitting $1 million, early improvements in affordability are beginning to surface, driven by falling interest rates and easing inflation.

“This data reflects a resilient and competitive property market, particularly in the major capitals,” she said.

“However, supply remains a significant issue, and without meaningful reform, housing pressures will persist.

“It’s a reminder that Australia’s housing challenges are structural, not cyclical.”

Pilkington said that while the easing inflation and better borrowing conditions have been offering a glimmer of hope for first home buyers, the $1 million average price highlights the ongoing challenge.

She said the Labor government’s move to allow all first home buyers access to 5 per cent deposits, alongside a $10 billion investment to build up to 100,000 homes exclusively for this group, will help younger Australians find a path into the market.

“[However], meeting housing targets must not come at the cost of liveability or longevity,” she said.

“We need to deliver homes that are not only fast-tracked but also built to last. That means proper planning, clear building standards, and long-term thinking around infrastructure, community needs, and quality control.”

Pilkington said investors have been returning to the market, encouraged by easing interest rates, strong rental demand, and capital growth in certain areas.

“However, ongoing uncertainty around rental regulation and the lack of new housing supply continue to create headwinds. Encouraging more investment is vital to improving rental stock levels.”

Additionally, she said that rental markets have been expected to stay tight in the short term, as high property prices and ongoing population growth have driven more Australians to rent, increasing competition.

“Without renewed investor activity and targeted housing supply, renters will continue to face affordability challenges,” Pilkington concluded.

This article was originally featured in Broker Daily sister brand Real Estate Business.