New research reveals property values grew from $210,000 to $1.18 million nationally, with 16 townships achieving 700 per cent-plus growth despite multiple market downturns.
Australian households have seen their property wealth surge by 560 per cent over the past quarter-century, according to new research analysing 400-plus townships across the country.
The typical Australian house worth $210,000 in 2001 had reached $1.18 million by the end of 2025, representing what property research firm Propertyology calls “phenomenal growth” despite significant national challenges.
Simon Pressley, Propertyology’s head of research, said the wealth of seven out of every 10 Australian households had vastly improved from the increase in their most important asset’s value.
Sixteen townships across Australia, including two capital cities, achieved capital growth of 700 per cent or more during the period.
Sydney’s 540 per cent growth sat slightly below the national average, while Melbourne recorded 485 per cent growth.
Even the worst-performing locations delivered substantial returns, with Mount Isa in Queensland recording the lowest growth at 250 per cent, followed by Kalgoorlie in Western Australia at 300 per cent.
Apartments experienced significant value increases but consistently underperformed detached houses across every jurisdiction. In some cities, house growth rates were double those of apartments.
Australia averaged 480,000 property transfers annually during the period, with transaction volumes ranging from a low of 397,000 in 2011 to a record high of 644,000 in 2021.
The research divided the 25-year period into five-year blocks, revealing distinct market phases shaped by economic cycles, regulatory changes, and major events.
The opening period from 2001-2005 marked Australia’s strongest economic era since the mid-1980s, driven by stable leadership and the beginning of what he termed “Stage One of the Asian Century” – large-scale urbanisation in China and India.
With home loan interest rates around seven per cent, 23 regional cities achieved house value increases of at least 120 per cent during this period, dominated by Queensland, NSW and Tasmania locations.
The Global Financial Crisis brought momentum to a grinding halt in mid-2008, creating a two-speed economy that separated mining states from the rest of Australia.
This period coincided with digital transformation of real estate marketing, with REA Group’s online platform growing from 10 million monthly page views in 2010 to 65 million by 2025.
The 2011-2015 period saw the lowest transaction volume of the quarter-century in 2011, followed by a commodity price crash in 2014 that particularly impacted mining-dependent jurisdictions.
Meanwhile, “Stage Two of the Asian Century” brought overseas investment and international students, injecting growth into major cities like Sydney and Melbourne.
The apartment building frenzy reached such intensity that apartments represented 50 per cent of all new residential dwellings in capital cities for an entire decade.
By 2015, Sydney and Melbourne median house prices had reached $900,000 and $700,000 respectively, separating them from most townships which remained between $300,000 and $550,000.
The 2016-2020 period was dominated by regulatory intervention responding to housing affordability concerns in Australia’s two largest cities.
Mr Pressley said the entire country paid the price of political uncertainty around negative gearing changes, combined with APRA credit policy restraints and state government landlord legislation.
This created a national economy that marginally avoided recession, with consumer confidence remaining low and property purchases dropping to just 430,000 in both 2018 and 2019.
The regulatory changes caused widespread declines in vacancy rates and the onset of sharp rent rises.
Average weekly rent for a three-bedroom house in late 2016 was $570 on the Gold Coast, $490 in Melbourne, $420 in Perth and Coffs Harbour, $400 in Geelong, $380 in Cairns, $320 in Dubbo, and $300 in Mandurah and Launceston.
Perth’s market endured particular volatility, with three consecutive five-year periods producing only 40 per cent growth collectively, while the bookend periods delivered 565 per cent growth combined.
The final period from 2021-2025 saw COVID-19 create an enforced circuit breaker from routine, with governments injecting unprecedented money into the economy.
Households re-evaluated priorities, driving lifestyle-focused decisions and elevated buyer activity despite Australia’s lowest population growth in over 100 years.
The period was characterised by existing homeowners pursuing upgrades, young couples moving from apartments to suburban houses, work-from-anywhere flexibility, and regional relocations.
He also found that throughout the quarter-century, Australia experienced political instability with seven different prime ministers over 14.5 years following John Howard’s departure in December 2007.
Despite housing supply rhetoric, government-funded housing totalled just 105,000 dwellings over 25 years – 2.3 per cent of national building approvals.
However, stamp duty revenue grew from $6 billion in the first year to an estimated $30 billion in 2025, while capital gains tax and land taxes increased from $9 billion to approximately $50 billion over the same period.
