The Australian property market has undergone a notable transformation in recent years, exhibiting considerable growth nationwide.
This evolution has significantly increased overall property values, impacting homeowners and the broader economic landscape.
For many who have invested in residential property over the past half-decade, these market movements could have substantial implications for their financial circumstances.
Recent data provides insights into the extent of these changes and their potential effects on asset values.
The real estate market has been on a remarkable journey over the past five years, with national home values skyrocketing by an impressive 39.1%.
According to the latest CoreLogic data, this surge has increased the median dwelling value by approximately $230,000.
For many Australians who have invested in property, this could significantly boost their net worth and financial security.
The CoreLogic April Housing Chart Pack paints a picture of a market that has grown robustly since March 2025.
The price of an average home, which was once 4.6 times the median income in 2001, escalated to 6.5 times in 2020 and reached a record high of 8.0 times the median income at the end of last year.
This growth, while milder in percentage terms compared to the historic peaks of the early 2000s and late 1980s, represents a substantial increase in dollar value.
Kaytlin Ezzy, a CoreLogic economist, highlights the significance of this growth: ‘While around half the increases seen during the previous peaks, when adjusted to the current median value, the rise seen over the past five years is equivalent to a roughly $230,000 increase.’
‘By comparison’, she added ‘the dollar rise seen over the five years to December 2003 was roughly $90,000 less, at $140,000, while the March 1989 increase was equivalent to around a $60,000 increase in the median’.
Tim Lawless, CoreLogic’s research director, points out that housing affordability has reached new peaks of unaffordability.
‘Other measures of housing affordability are also at a record high, including serviceability metrics, the number of years it takes to save a 20% deposit, and how much income is required to pay rent,’ he said.
‘In simple terms, housing values have risen a lot faster than incomes.’
The factors contributing to this rapid growth are multifaceted, including ‘demand/supply imbalances’, a long-term trend of falling interest rates, and increased household debt.
Sydney stands out as the most unaffordable capital city housing market, with a housing value-to-income ratio of 9.8, followed closely by Adelaide at 9.0. On the flip side, Darwin offers a more affordable scenario, with a ratio of just 3.9, reflecting its lower housing values and higher incomes.
Ezzy notes that the 39.1% growth in values over the past five years reflects strong underlying housing demand, tight supply, and a resilient economy.
‘Outside of a few short months of declines, values have seen strong upward pressure over the past five years, driven by low stock levels and increased demand.’
However, she also reminds us that this growth cycle ‘remains moderate’ compared to earlier periods, which were fueled by financial deregulation, strong economic growth, and favourable demographic shifts.
For our readers, particularly those contemplating retirement or downsizing, this boom could represent an opportune moment to reassess the value of their property and consider their options.
Whether it’s unlocking equity to fund retirement, assisting children with entering the property market, or simply understanding the potential sale value of their home, the current market conditions are certainly noteworthy.
We invite you to share your experiences with the Australian real estate market. Have you seen a significant increase in the value of your property over the past five years? Are you considering making a move in light of these changes?
Also read: Super for Housing: Smart Investment or Political Scare Tactic?
