Based on reporting by Elizabeth Redman, SMH
Over the past decade, Australia’s property market has experienced remarkable growth. From major cities to emerging regional centres, housing values have surged in ways that have drawn the attention of investors, policymakers, and the public.
According to newly released data from Cotality (formerly CoreLogic), housing values across the country have risen dramatically—some cities nearly doubling in value. This raises an important question: what does the next decade hold?
Snapshot: Which Cities Led the Growth?
Sydney: Despite a recent decline of 1.1%, prices are still up 61.6% over the last 10 years.
Melbourne: A slower performer recently, but up 43.8% over the decade.
Brisbane: A standout city with a 90.9% increase.
Adelaide: Leading all capitals with a 91.3% rise, reaching record highs.
Perth: Now at historic peak, up 55.6% since 2014.
Darwin: Though long subdued, prices have climbed 31.2%, boosted by pandemic-era migration.
Across capital cities and regional areas, Australian housing values have increased by 67.6% nationally. Regional areas, particularly those with lifestyle appeal and infrastructure investment, have also seen strong gains.
What Drove the Price Boom?
Cotality’s Head of Research, Eliza Owen, attributes this housing boom to several key factors:
- Historically low interest rates (until 2022), which boosted borrowing capacity
- A persistent undersupply of housing relative to population growth
- A strong labour market, supporting household incomes
- Significant infrastructure investment in growth corridors and regional towns
- Lifestyle-driven migration post-COVID, as people sought affordability and space
“Price growth has been particularly strong in cities like Adelaide and Brisbane,” Owen explains, “where affordability was relatively high a decade ago, and interstate migration surged in the wake of the pandemic.”
Supply-Side Constraints Remain a Major Challenge
While demand certainly played a key role, the housing shortage is fundamentally a supply issue. Even in cities like Melbourne—where construction has outpaced other capitals over the past five years—developers continue to face challenges including high building costs, skilled labour shortages, and sluggish planning approval processes.
Economists at ANZ suggest that even as rising interest rates dampen demand, the supply squeeze will continue to support elevated prices in many areas.
The Next Decade: Can Growth Continue at This Pace?
Most experts agree that the extraordinary price increases of the past decade are unlikely to be repeated. Housing affordability has become a national political issue, and government policy is shifting toward expanding supply and curbing speculative demand.
“We’re unlikely to see price increases on the same scale over the next decade,” says Owen.
Nonetheless, with continued population growth, infrastructure development, and constrained housing stock, moderate price growth is still expected—especially in well-connected, high-demand regions.
What Living Ideas Thinks: Beyond Property Prices
At Living Ideas, we view property not just as an investment, but as a reflection of how cities evolve, how we live, and how we share space. The real question is not only whether prices will keep rising, but whether our cities can continue to meet the needs of growing, diverse populations.
We advocate for:
- Smarter, sustainable urban planning
- Green public infrastructure and inclusive public spaces
- Increased investment in well-designed, affordable housing
- Stronger cooperation between metropolitan centres and regional towns
Rising prices signal deep structural challenges. It is time to focus not just on the market—but on the quality of life we want to build.
What’s Your View?
With interest rates rising, inflation biting, and planning reforms underway, how do you see the next decade of Australia’s housing market unfolding? Which cities have the most long-term potential? And how do we make sure the benefits of growth are shared fairly?
Join the conversation with Living Ideas. We’re here to explore how thoughtful design, policy, and community engagement can shape a more resilient future.
Source:
How far property prices soared in a decade – and what happened next
SMH, May 12, 2025
https://www.smh.com.au/property/news/how-far-property-prices-soared-in-a-decade-and-what-happened-next-20250512-p5lygt.html
