Key takeaways
The total value of Australia’s residential dwellings hit a fresh high of $11.37 trillion in March 2025, up 1.2% over the quarter and almost 6% year-on-year.
The average national house price surpassed the symbolic $1 million mark for the first time, at $1,002,500.
The housing sector’s strength has been bolstered by two interest rate cuts so far this year, with more expected. This is fuelling positive buyer sentiment and auction market confidence.
The national auction clearance rate rose to 66.3% last week, with Melbourne exceeding 70%, driven by recent rate cuts and seasonal activity.
The early winter selling season has stayed resilient, with expectations of more positive auction results before the mid-winter lull.
It’s been a surprisingly lively early-winter week in real estate.
Despite the chill in the air, there’s heat in the housing sector, with auction clearance rates staying robust, buyer sentiment turning more positive, and employment figures continuing to impress.
During the week, the Australian Bureau of Statistics reported that the Australia’s housing market just hit another milestone.
The total value of all residential dwellings across the country climbed to $11.37 trillion in March 2025, rising 1.2% over the quarter and almost 6% over the year.
The ABS reports average house prices, so by taking the total value of all properties in Australia and dividing it by the number of properties, the average price of a home nationally has topped $1 million for the first time, landing at $1,002,500.
That’s up 0.7% this quarter and 4.2% over the year.
Now, depending on where you sit, the idea of the "average" Aussie home costing over a million dollars will either feel like a win or a warning.
It’s worth noting that only New South Wales actually has an average house price of over the million mark, but because of the proportion of all properties in New South Wales, this skews the figures.
However, no matter which way you look at it, our housing markets are still powering ahead.
And with two interest rate cuts already this year, and more on the way, we will see momentum pick up even further.
On the flip side, we’re still not building enough homes.
The number of dwellings grew to just over 11.33 million - up 179,900 over the year - which sounds decent until you remember that it’s well below what the Housing Accord is aiming for.
I discuss this and a lot more in this week’s Property Insiders chat with Australia's leading property economist Dr. Andrew Wilson, chief economist of My Housing Market.
Labour market still holding the line and that’s critical
Watch this week’s Property Insider chat as Dr. Andrew Wilson explains how Australia’s employment data continues to exceed expectations.
Employment numbers and jobs creation is a critical measure of how our economy is performing and it wasn’t that long ago that the pessimists were telling us how unemployment levels would rise.
However the May labour force report shows:
- Unemployment remained steady at 4.1%
- 329,100 new jobs added year-on-year
- Participation rate was also steady at 67.0%, just shy of the record high
- Queensland leads with the lowest jobless rate at 3.7%
This resilience in employment underpins buyer confidence.
When people feel secure in their jobs, they’re more likely to upgrade homes, invest in property, and avoid mortgage stress, even in the face of higher interest rates.
It’s one of the key reasons we haven’t seen a spike in distressed listings or mortgagee sales, despite the RBA’s aggressive tightening cycle between 2022 and 2024.
- Also read:Latest Property Asking Prices State by State | New Listings Drop 9.1% in June 2025
- Also read:Falling interest rates drive an acceleration of growth in housing values through Q2 | Latest Cotality Data
- Also read:Lower Interest Rates Drive Home Prices Higher and Higher Over June | Latest Housing Market Stats Dr. Andrew Wilson
- Also read:Auction Report June 28th | Early Winter Auction Markets Produce More Positive Results for Sellers
- Also read:Australia’s housing market just hit another milestone | Property Insiders
A solid job market keeps the floor under housing prices.
Migration eases but demand still outpaces supply
Watch this week’s Property Insider chat as Dr. Andrew Wilson discussed the latest ABS data, which shows population growth is moderating:
- The national population rose to 27.3 million by December 2024
- Overseas migration added 547,300 people in 2024 – still very strong, but slowing
- Net migration into NSW was 106,730 for the December quarter
- Queensland gained 25,940 interstate migrants, but even that is softening from previous highs
But let’s be clear…we’re not witnessing a collapse in migration - just a tapering from extreme growth after our floodgates were opened at the end of our Covid lockdowns.
These levels of migration remain significantly higher than pre-pandemic migration rates and are expected to continue driving housing demand and rental markets that are already under pressure.
NSW received the largest number of overseas migrants.
While, as usual, Queensland received the most interstate migration in general at the expense New South Wales.
But the “population boom” story isn’t over – it’s just normalising.
But the supply side hasn’t caught up, which means rents are likely to remain elevated and capital growth prospects are intact for well-located properties.
Early Winter auction markets produce more positive results for sellers
This week Dr. Andrew Wilson explains how our winter auction markets have produced more positive results for sellers, as the impact of recent interest rate cuts continues to support market confidence.
The reviving Melbourne market continues to track above 70% clearance rates.
National clearance rate rose to 66.3%, boosted by interest rate cuts and seasonal momentum.
Housing markets will close out the notional autumn selling season over the next few weeks with more positive auction results likely before the quieter mid-winter selling season emerges.
Some final thoughts
The big picture remains remarkably supportive for property.
- Employment is strong.
- Demand from migration is still elevated.
- Listings of properties for sale remain low.
- And rate relief is on the horizon.
We may not be in boom times, but these are solid, fundamentally supported conditions.
For the informed investor, the current window could present great opportunities to acquire quality assets before the market fully prices in the next leg up.
