Australia’s residential property market has achieved an unprecedented valuation benchmark, soaring beyond $12 trillion for the first time in history. According to the latest data from the Australian Bureau of Statistics (ABS), the sector experienced its thirteenth consecutive quarter of expansion since September 2022, culminating in a remarkable $384.8 billion increase during the final quarter of 2025 alone.
The national mean dwelling price escalated by 2.7 percent to reach $1.074 million, with every state and territory recording positive growth. Western Australia emerged as the standout performer with quarterly gains of $70,500, followed by Queensland ($48,800) and South Australia ($40,800). New South Wales maintained its position as the most expensive market with mean prices reaching $1.301 million after a 1.7 percent quarterly increase.
ABS Head of Financial Statistics Mish Tan highlighted that Western Australia’s annual growth of 16.8 percent significantly outpaced other regions, pushing its mean dwelling price above the $1 million threshold for the first time. This development makes Western Australia the third state to join the million-dollar club alongside New South Wales and Queensland.
Despite the expanding housing stock, which grew by 54,100 dwellings to reach 11.45 million properties, supply continues to lag behind demographic demands. Westpac’s Consumer Chief Executive Carolyn McCann characterized the supply shortage as a ‘national emergency,’ emphasizing that limited availability creates substantial barriers for prospective homeowners. McCann advocated for accelerated construction of appropriately priced homes to ensure housing accessibility remains achievable for future generations.