Manya Rathore
Research expert covering India
Real estate in Australia - statistics & facts
Australia’s real estate market is a core part of the national economy, comprised of residential, retail, office, and industrial properties. The country’s has been stuck in a property bubble for many years, with low- and middle-income earners largely priced out of the market. With housing demand rising in tandem with the country’s population expansion, Australia’s supply-and-demand imbalance and largely unaffordable housing have come under scrutiny. On the commercial side, the market showed signs of recovery following a tough year for retail and office properties affected by e-commerce expansion and the work-from-home boom.
Australia’s housing affordability conundrum
Housing affordability is a much-contested issue in Australia, with many people struggling to get onto the property ladder as house prices remain largely disproportional to income. The house price-to-income ratio skyrocketed to 122.1, the highest ratio recorded in the past five years, making the homeownership dream increasingly challenging and the risk associated with purchasing a property greater. Sydney maintained its position as Australia’s most expensive capital for residential properties in 2024, with Brisbane emerging as an increasingly pricey city.Is Australia addressing its housing crisis?
While affordability and insufficient supply remain long-term challenges with no immediate solution, the 2025 residential market conditions show positive movement. Interest rate cuts are expected alongside the expansion of initiatives to improve Australia’s dwelling stock, social housing accessibility, and first-time homeownership prospects. Set to span over four years, the government’s Help to Buy scheme, which hopes to break the ceiling on buyers’ ability to access the property market by increasing borrowing power, came into law in November 2024. Alongside this, Housing Australia’s Future Fund Facility (HAFFF) and National Housing Accord Facility (NHAF) programs completed their first funding rounds in 2024, with further rounds planned to deliver more social and affordable dwellings.Australia’s rent boom: an end in sight?
Climbing property prices alongside high average mortgage rates, while starting to plateau, have led many individuals and families to rent for prolonged periods. Nonetheless, the country’s rental crisis endures, with unaffordable conditions extending beyond urban capitals to regional suburban areas. However, property experts have indicated rental growth may have peaked, with a deceleration expected across several markets in 2025. Yet, this does not remedy that many tenants still grapple with and payment stress due to the rising share of household income spent on rent.Commercial property rebounds
Australia’s industrial properties demonstrated resilience amid an otherwise struggling in 2023, recording high leasing activity and near-zero vacancy levels as demand for warehouses from postal services and e-commerce operators rose, consequently hampering brick-and-mortar retail property demand. Office spaces were also hit hard, witnessing low occupancy owing to downsizing in favor of compact spaces in core locations and the shift to hybrid working models. However, in 2024, Australia’s office and retail properties bounced back, with office rents growing as the sector witnessed more sustained demand, decreasing vacancy rates, and . While the national average industrial vacancy rate lifted and demand was subdued compared to the two years prior, the rate remained relatively low.
