Call for free independent agent advice
Your home is worth more than just a number. Compare top-performing agents who know your local market and can help you maximise your sale price.
Home › Market Insights › Australian House Prices Graph Over the Last 20 Years
Australian house prices have climbed sharply over the past two decades, but the journey has not been smooth. Buyers, sellers and investors have all experienced periods of rapid growth, short-lived corrections and surprising rebounds. This guide gives you a clean, easy-to-understand view of how prices have changed from 2005 to 2025. You will also see the key factors that shaped each market cycle, how the major capital cities compare and what the long-term trends may mean for you today.
If you are planning to sell soon, this long-term price data provides helpful context for choosing the right time and the right agent.
Key Takeaways Australian house prices have more than doubled over the last 20 years, driven by strong demand and limited supply. Every capital city increased in value long term. but Sydney and Melbourne showed the strongest growth, while Perth and Darwin showed the biggest cycles. The COVID period delivered one of the fastest price surges on record, followed by a short correction in 2022 and a return to new highs by 2025. Long-term growth is supported by high migration, low housing supply, infrastructure investment and strong urban demand. Short-term downturns happen. but historical data shows they tend to be shallow and temporary. Most homeowners now hold significant equity, making this an advantageous time for selling or refinancing. Buyers face affordability pressure. but well-located homes continue to outperform even during cooling periods. Understanding your city’s 20-year trend helps sellers choose the best timing and the right agent for a higher sale price.
Key Takeaways
Next Step: Compare top-performing real estate agents near you to understand your true selling position.
Australia’s housing market has changed dramatically over the last 20 years. Before diving into the graph and detailed city-by-city trends, it helps to look at the big picture. The numbers below are based on national indexes published by the ABS Residential Property Price Index (RPPI), CoreLogic Hedonic Home Value Index, and long-term charts from the RBA. These sources are widely accepted as the most accurate baseline for measuring house price changes over time.
Over this 20-year window, national dwelling prices have more than doubled due mostly because of the following events:
Although national numbers give a broad trend, they hide big differences across states. Sydney and Melbourne saw larger gains compared with cities like Perth or Darwin. Canberra and Hobart delivered surprising long-run strength, while Brisbane accelerated sharply only in the last five years. The data used throughout this article draws from the ABS (updated quarterly), Cotality (updated daily and monthly) and RBA chart packs (updated regularly), ensuring the figures align with recognised Australian property benchmarks.
If you are thinking about selling, long-term price growth shows why experienced agents remain crucial. They understand how your suburb fits into these national cycles and can help you time your sale for the best outcome. To start exploring, try our in-depth guides such as:
Choosing the right agent can add tens of thousands to your final sale. See who’s selling homes like yours and delivering real results.
To understand what has really happened to Australian house prices over the last 20 years, it helps to zoom out and look at the full curve. When you line up data from the ABS Residential Property Price Index for the eight capital cities, then extend it with CoreLogic or Cotality hedonic indexes and recent PropTrack figures, a clear long term trend emerges. Prices have risen strongly overall, but in a series of distinct cycles rather than in a smooth straight line.
If you index national dwelling prices to 100 in 2005, the combined capital city price index rises gradually to around the 120 level by about 2010. It then lifts more quickly through the 2013 to 2017 boom, pauses and dips slightly through the 2018 to 2019 tightening phase, then surges during the COVID period as interest rates fall to record lows. By late 2021 the ABS series for the weighted average of the eight capitals is more than 70% above its 2011 to 2012 base year, reflecting one of the strongest national growth phases on record.
The curve then shows a short but sharp correction through 2022 as the RBA lifts the cash rate. National values fall back by roughly 7 to 10 per cent from peak levels according to CoreLogic data. They then stabilise and start climbing again from early 2023 onwards. By March 2025, CoreLogic or Cotality estimated the average national dwelling value at just over 820,000 to 850,000 dollars, a new record high and around 40 per cent higher than five years earlier.
When you convert these price series into real (inflation adjusted) terms, the picture is more modest but still clearly upward. Research using BIS and RBA data suggests real house prices have increased by roughly 50% between the early 2000s and early 2020s, even after stripping out consumer price inflation.This means housing has become significantly more expensive relative to other goods and services and relative to household incomes, which is consistent with affordability metrics such as value to income ratios and deposit saving times also pushing to record levels.
For sellers, this long term graph explains why many properties now carry very large unrealised gains, even if you bought only 10 to 15 years ago. For buyers and investors, the same data shows that Australian housing has delivered strong long run returns, but with repeated periods of flat or negative growth when interest rates rise or when local economies slow. If you intend to sell, reading this graph alongside suburb level data and recent sales can help you judge whether you are closer to the top, middle or early stage of the current cycle. You can then make a more informed decision about when to list and which agent can best leverage current conditions.
First, just to be clear the numbers below are an illustrative national index (2005 = 100) that mirrors the broad shape of the ABS Residential Property Price Index, BIS long run series and recent PropTrack/CoreLogic growth figures.
To understand why Australian house prices have climbed so consistently over the past 20 years, it helps to look at the major forces that pushed values higher. While individual years show ups and downs, the long-range trend reflects deeper structural drivers that have shaped demand, restricted supply and influenced borrowing power. These factors explain why national prices have almost doubled since 2005, even after periods of correction. Before diving into each capital city’s performance, here are the key growth drivers that appear again and again in ABS, RBA, CoreLogic and PropTrack commentary.
Australia’s population has grown quickly over the last two decades. ABS data shows an increase from around 20 million people in 2005 to more than 27 million in 2025. This creates ongoing pressure on housing demand. High migration flows, especially into Sydney, Melbourne and Brisbane, amplify competition for both buying and renting. Cities with the strongest migration trends usually show the strongest long-term price growth because demand stays high even when the economy slows. Strong population growth also encourages construction. but new supply rarely keeps up with the number of new households being formed.
Australia has struggled to keep up with the number of homes needed. According to ABS building activity data, construction completions have moved in cycles, but industry challenges such as rising material costs, labour shortages and planning delays have slowed new housing delivery, especially in the past five years. PropTrack and CoreLogic both highlight that the low number of new listings during certain periods creates supply bottlenecks. When fewer homes are available, competition among buyers intensifies and prices rise. Shortages are most common in established suburbs where land is scarce and redevelopment takes time.
Interest rates are one of the strongest drivers of house prices. The RBA lowered the cash rate consistently from 2008 to 2020, which increased borrowing capacity for millions of buyers. Lower rates mean households can service larger loans, which in turn pushes prices higher. The COVID period, when rates fell to emergency levels, produced one of the fastest price surges in Australian history. When rates rose sharply through 2022, the market corrected. but the correction was short because the underlying demand remained strong. This pattern shows how sensitive the market is to changes in borrowing power.
Investors play a significant role in Australia’s housing market. Tax settings such as negative gearing and the capital gains tax discount have encouraged investment demand for decades. Investor loans often rise in periods of low interest rates. creating additional competition for owner-occupiers. Investor demand was especially strong during the 2013–2017 boom and resurfaced as rates stabilised in 2023–2025. When investor participation increases, price growth typically accelerates in inner-city and middle-ring suburbs near transport, jobs and universities.
Government incentives have influenced prices almost every cycle. First Home Owner Grants (FHOG) such as $30K FHOG in QLD, stamp duty concessions, and COVID-era stimulus such as HomeBuilder supported buyer demand when uncertainty was high. These incentives often increase demand immediately because they bring forward purchasing decisions. While helpful for eligible buyers, they can also lift prices temporarily because more buyers compete for the same limited supply. Longer-term policy settings around zoning, infrastructure and density also affect how many homes can be built, shaping market conditions for decades.
Large-scale infrastructure projects have played a role in price growth across multiple states. New transport links, road upgrades and urban renewal projects increase the desirability of surrounding suburbs. This lifts long-term demand and boosts values. Sydney’s Metro lines, Melbourne’s level crossing removals and Brisbane’s cross-river development are examples of infrastructure driving sustained price outperformance in affected pockets.
When you break the national index into individual capital cities, the differences become very clear. Sydney and Melbourne show the strongest and most sustained long-term growth. Brisbane accelerates later in the period, and Perth shows a classic boom-bust recovery pattern linked to the mining cycle. The series below is an illustrative index using 2005 as 100 for each city. It mirrors the broad shape of the ABS Residential Property Price Index for each capital and the city trends described in CoreLogic/Cotality and PropTrack reports over the past two decades.
At a high level.
Sydney has delivered the strongest long-term house price growth in Australia over the past 20 years. The data shows a clear upward trajectory driven by chronic supply shortages, high incomes, global city status and steady population growth. From a median of $500,000 in 2005, Sydney homes reached around $1.45 million in 2025, more than doubling over two decades.
Sydney moved through several distinct cycles. The mid-2000s growth phase lifted prices steadily before the market flattened during the aftermath of the Global Financial Crisis. The city then entered one of its strongest ever booms from 2013 to 2017 as record-low interest rates and intense investor demand pushed values rapidly higher. This momentum slowed through 2018 and 2019 before accelerating again during the COVID period, when ultra-low interest rates and limited supply drove a sharp surge. The rapid rate increases in 2022 caused a temporary pullback. but values recovered quickly through 2023–2025 due to ongoing undersupply and resilient buyer demand.
For sellers, this long-term growth means many households hold substantial equity, even if they purchased only a decade ago. This places them in a strong position to upgrade, downsize or release capital. Buyers face a more competitive environment, particularly in sought-after inner and middle-ring suburbs where scarcity is high. Understanding Sydney’s long-term price cycles can help sellers choose the right listing window and the most effective agent for their suburb.
Indicative Sydney median house prices 2005–2025. Constructed to reflect ABS and CoreLogic trend patterns.
Melbourne’s housing market has also seen significant long-term growth, rising from around $400,000 in 2005 to approximately $1.1 million in 2025. The city generally tracks a similar pattern to Sydney. though usually with slightly gentler peaks and softer troughs. Melbourne’s strong population and jobs growth, combined with its appeal as an education and cultural hub, have supported consistent demand.
The strongest growth periods occurred in 2009–2010 following stimulus measures and then from 2013 to 2017 during the east-coast boom. Melbourne experienced a more noticeable soft patch during 2018–2019 as lending conditions tightened, and then again in 2022 when rising rates cooled buyer demand. However, like Sydney, Melbourne rebounded in 2023–2025 as migration returned and supply remained limited.
This long-term stability makes Melbourne attractive for sellers looking to capture accumulated equity. Buyers benefit from a wider choice of affordable middle-ring suburbs compared with Sydney. but entry remains challenging for first-timers. Sellers should track localised demand patterns, as some areas recover faster than others.
Indicative Melbourne median house prices 2005–2025. Constructed to reflect ABS and CoreLogic trend patterns.
Brisbane’s long-term growth story is different. The city grew steadily through the 2000s but at a slower pace than Sydney and Melbourne. Its major acceleration came much later from 2020 onward driven by interstate migration, remote work trends, lifestyle shifts and relative affordability.
Brisbane’s median house price rose from around $350,000 in 2005 to $880,000 in 2025, an increase of more than 150 per cent. The city’s late-stage boom aligns with Queensland’s strong population inflows, especially from NSW and Victoria during and after the pandemic. Compared to the southern capitals, Brisbane avoided the steep correction seen in 2022, largely because affordability was already stronger and demand remained elevated.
For sellers, this means opportunities in suburbs that have transitioned from mid-tier to premium price brackets. Investors have gravitated toward Brisbane due to favourable rental yields and price growth potential. Sellers benefit most when working with agents who understand how Queensland’s fast-changing suburbs affect buyer interest.
Indicative Brisbane median house prices 2005–2025. Constructed to reflect ABS and CoreLogic trend patterns.
Perth shows the most dramatic cycle of all capitals. From 2005 to 2010, prices surged due to the mining boom, lifting the median from $300,000 to almost $500,000. As mining investment slowed, Perth entered a long period of stagnation and decline from 2011 to around 2019, with values softening gradually.
The COVID period marked the beginning of a sharp recovery. Western Australia’s strong economy, returning population growth, housing shortages and affordability relative to the east coast created momentum that continued into 2025. Perth’s median rose to around $700,000 by 2025, its highest level ever.
This cycle means many long-term owners who purchased during the mid-2010s downturn now hold meaningful equity again. Sellers should be aware that the strongest demand remains in well-located family suburbs with limited stock. Investors continue to target Perth due to its rental yields and relative value.
Indicative Perth median house prices 2005–2025. Constructed to reflect ABS and CoreLogic trend patterns.
Australia’s housing market has not grown in a straight line over the past 20 years. Instead, values have risen through a series of distinct cycles shaped by economic conditions, interest rates, population changes and supply constraints. Looking at these two decades in isolation helps sellers and buyers understand why prices behave the way they do today. Each period has its own drivers. and each offers important lessons for homeowners making decisions in the current market.
The decade between 2005 and 2015 set the foundation for Australia’s modern property market. It saw the tail end of the mining boom, the shock of the Global Financial Crisis and the beginning of the major east-coast upswing.
During this time.
For sellers, this decade highlighted an important pattern. Markets can pause for several years but still deliver strong long-term growth. Buyers saw that downturns were often opportunities, not long-term declines.
The decade from 2015 to 2025 was the most eventful in Australia’s housing history. It featured rapid growth, a nationwide cooling phase, a pandemic-driven boom, a sharp rate-hike correction and a return to record prices.
Across this period.
Sellers in this period benefited from rapid equity growth, especially if they purchased before 2020. Buyers found the market more competitive, but many sought opportunities in middle-ring suburbs and regional areas. The decade confirmed that Australia’s long-term growth outweighs short-term corrections when viewed over 20 years.
Australia’s last two decades of data give strong clues about how the housing market is likely to behave in the years ahead. While no forecast is perfect, long-term patterns from ABS RPPI, CoreLogic’s Hedonic Home Value Index, and PropTrack housing insights all point to several structural forces that will continue shaping prices. These trends matter for sellers, buyers and investors because they help set expectations about supply, demand and market stability.
Over the next five to ten years. Australia’s housing market is expected to remain resilient, supported by high migration, limited supply and steady long-term demand. These factors don’t guarantee uninterrupted growth. but they do help explain why the market has repeatedly recovered quickly after downturns. Below are the key signals suggested by historical data and current economic settings.
Interest rates will continue to influence short-term movements in house prices. However, even with higher rates in 2022–2024, national values still climbed to new highs by 2025. This shows that Australia’s structural demand is strong enough to carry prices upward even when borrowing power is limited.
Over the next decade.
Sellers in the next five years will likely benefit from stable demand and increased borrowing confidence once rates ease or plateau.
The last 20 years show a clear pattern. supply rarely keeps pace with demand. ABS construction data and government planning reviews consistently show long timeframes for approvals and completions, especially in major cities.
Looking ahead.
For sellers, this means listing in a low-supply environment can help generate strong competition. Buyers will face continued pressure to act quickly when quality listings appear.
Over the past two decades, population growth has been one of the strongest and most consistent drivers of price rises. According to ABS population projections, migration is expected to remain elevated well into the 2030s.
This will influence:
High migration increases competition for both rentals and purchases. For sellers, this means more active buyers in the market. especially in cities experiencing skill shortages, university growth, infrastructure expansion and housing scarcity.
Australia’s population is becoming more concentrated in major cities. Long-term infrastructure programs in NSW, VIC, QLD and WA suggest improved transport links and new employment zones will continue shaping property demand.
Key implications.
Sellers situated near future rail, metro or road upgrades often benefit from increased buyer interest even before projects are completed.
Recent commentary from leading Australian economists suggests several long-term themes.
While short periods of volatility are expected, the long-term outlook remains one of steady upward movement. For sellers, this means the next decade is likely to support strong exit opportunities. For investors, timing will remain important, but the underlying fundamentals suggest continued long-run growth.
Over the last 20 years, Australia’s housing market has moved through sharp booms, short corrections and long stretches of steady growth. Yet through all these cycles, one pattern has remained constant. property values trend upward over time. When you look at every capital city’s journey from 2005 to 2025, the data is clear. long-term demand, limited supply and strong population growth have consistently pushed prices higher. This means many homeowners sit on significant equity gains, even if they bought only a decade ago.
For sellers, this long-term perspective provides confidence. Whether you choose to sell now or plan for the future. Understanding how your suburb fits within national and city-level trends helps you make better decisions about timing, strategy and agent selection. For buyers and investors, the data shows that while the market can fluctuate, well-located properties tend to grow in value over time.
If you’re considering selling or simply want to understand your property’s place in the market, comparing local agents or getting a property value estimate is a helpful next step. Making informed decisions today ensures you get the most out of the last 20 years of market growth.
Nationally, house prices have more than doubled since 2005. Major capitals like Sydney, Melbourne and Brisbane have seen particularly strong long-term growth, while Perth and Darwin show more cyclical patterns.
By 2025, Australia’s national median house price sits around the mid-$700,000s, based on broad trends aligned with ABS RPPI, CoreLogic and PropTrack market results.
Sydney has experienced the strongest long-term growth, followed by Melbourne. Both cities gained more than any other capital over the last two decades due to population growth, limited supply and robust demand.
Key drivers include strong migration, tight housing supply, interest rate reductions, rising incomes, investor demand and large infrastructure projects boosting desirability in many suburbs.
Reach out to one of our knowledgeable team members below.
