If you’ve ever wondered whether your humble abode has joined the million-dollar club, you’re not alone.
Australia’s property market has just hit a jaw-dropping milestone: the average price of a home has officially cracked the $1 million mark.
Yes, you read that right—the national mean price of a residential dwelling now sits at a cool $1,002,500, according to the latest figures from the Australian Bureau of Statistics (ABS).
A million-dollar milestone—what does it mean?
For many Australians, home ownership has long been a cherished goal, a symbol of security and success.
But with the average price now tipping over seven figures, the dream is looking more distant for first-time buyers and even for those hoping to upgrade.
The ABS reports that the total value of Australia’s 11.3 million homes soared by $130.7 billion in just three months, reaching a staggering $11.4 trillion by the end of March 2025.
While the number of dwellings also increased—up by 53,400 to 11,338,500—the real story is the relentless rise in prices.
Even a modest 0.7 per cent quarterly increase was enough to push the average over the million-dollar threshold.
Is the market slowing down?
Despite this headline-grabbing milestone, there are signs the market’s red-hot pace is cooling. Dr Mish Tan, head of financial statistics at the ABS, notes that annual growth in the March quarter slowed to 5.9 per cent, down from a robust 9.5 per cent the previous year.
So, while prices are still climbing, the rate of increase is easing—a small comfort for those still saving for a deposit.
State-by-state: Who’s leading the charge?
Not all states are created equal when it comes to property prices. The latest data shows Western Australia, South Australia, and Queensland are leading the charge in price growth.
In a surprising twist, Queensland has now overtaken Victoria to become the second most expensive state for property, trailing only New South Wales.
And here’s a headline for the history books: Perth’s median house price has overtaken Melbourne’s for the first time in a decade.
According to PropTrack, Perth’s median home value now sits at $787,000, just edging out Melbourne’s $782,000.
This is a remarkable turnaround for Perth, which just five years ago had homes priced nearly 40 per cent lower than Melbourne.
What’s driving the boom in the West?
Eleanor Creagh, senior economist at PropTrack, attributes Perth’s surge to a unique mix of factors: relative affordability, strong population growth, increased investor interest, and ongoing supply constraints.
‘The shift reflects the turnaround in Western Australia’s housing market since 2022,’ she explains.
It’s a classic case of supply and demand—more people want to live in Perth, but there aren’t enough homes to go around.
Melbourne: Still rising, but playing catch-up
While Melbourne may have slipped in the rankings, it’s not all doom and gloom for the Victorian capital.
PropTrack’s research shows Melbourne had the strongest monthly price rise in May, up 0.79 per cent.
However, this comes after a prolonged period of softer growth, so there’s still some ground to make up.
What does this mean for older Australians?
For older Australians, these figures are a double-edged sword. If you already own your home, you might be feeling quietly chuffed about your growing nest egg.
But if you’re looking to downsize, help your kids into the market, or move to a new area, the high prices can be daunting.
It’s also worth considering the broader impacts: rising property values can mean higher council rates, increased insurance premiums, and more pressure on renters.
And for those relying on the Age Pension, the value of your home doesn’t count towards the assets test—but if you sell up and downsize, the proceeds might.
Looking ahead: Is there relief in sight?
With interest rates still relatively high and cost-of-living pressures biting, some experts predict the market will continue to cool in the coming months.
But with Australia’s population growing and housing supply still lagging, don’t expect prices to fall off a cliff any time soon.
Your turn: How are you navigating the property market?
Have you recently had your home valued? Are you thinking about selling, downsizing, or helping family members get a foot on the ladder?
Or are you simply shaking your head at the latest headlines? We’d love to hear your thoughts and experiences—share your story in the comments below!
And if you’re looking for tips on navigating the property market, downsizing, or making the most of your home’s value, check out our other articles and resources. The property game is always changing, but together, we can make sense of it—and maybe even come out ahead.
Also read: Australia is forecast to fall 262,000 homes short of its housing target. We need bold action
