A Snapshot of Where We Stand
Australia’s housing market in the first quarter of 2025 delivered a mixed performance—marked by pockets of strong growth, subtle corrections, and an ongoing conversation about housing supply, affordability, and future policy reform. Here’s a breakdown of what the numbers tell us and what they might mean for sellers, buyers, investors, and policymakers.
National Market Highlights
- Total residential dwellings: 11,294,300 (up 53,200 this quarter)
- Total market value: $11.03 trillion (up $26.4 billion from Q4 2024)
- Mean dwelling price: $976,800 (down slightly by $2,300)
- Annual home sales: 528,212 (up 4.6% YoY)
- Quarterly national home value growth: +0.7%
- Annual home value growth: +5.5%
While the slight drop in mean dwelling price may raise eyebrows, the broader trend shows sustained growth and demand—especially in states outside the traditional east coast powerhouses.
“We’re not seeing a market crash. What we’re seeing is a recalibration, particularly in over-inflated areas. Other states are stepping up, and that’s helping balance out the national picture.”
State-by-State Summary
| State | Mean Dwelling Price | Quarterly Change | Annual Change |
|---|---|---|---|
| NSW | $1,214,100 | -0.9% | +3.3% |
| VIC | $874,200 | -1.6% | -2.3% |
| QLD | $923,600 | +1.3% | +12.1% |
| SA | $834,700 | +2.1% | +14.0% |
| WA | $850,100 | +2.4% | +21.0% |
| TAS | $645,200 | +0.8% | +0.5% |
| NT | $500,900 | +0.2% | +3.5% |
| ACT | $956,800 | +0.4% | -0.6% |
Queensland, South Australia, and Western Australia are leading the charge, with strong price growth driven by relative affordability, interstate migration, and low housing supply.
Listings, Construction & Rental Trends
- Listings: National listings rose 3.2% YoY, now sitting 8.8% above the five-year average
- Building approvals: Up 6.1% year-on-year (October 2024), but completions remain low
- Rental growth: Slowed to 3.8% annually, the lowest in four years
“More listings are great, but we still need to close the gap between demand and actual housing supply. Buyers are ready, but construction bottlenecks and planning delays are holding the market back.”
What to Watch Moving Forward
- Affordability Pressures: Especially in NSW and VIC, where prices are softening slightly, giving buyers room to negotiate.
- Supply Chain & Planning Reform: Increasing construction capacity and streamlining development approvals are key priorities.
- Rental Trends: Easing rent growth could signal some early relief for tenants, but investor sentiment may shift.
The story for 2025 so far is one of transition. Some markets are cooling, others are heating up, and supply is still lagging behind. But with a clearer picture emerging, sellers and buyers alike are in a better position to make informed decisions.
Want to know where your property stands in today’s market? Visit www.checkmyhouseprice.com.au to request your free house price report today.
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