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Australian Home Prices Reach New Heights: Navigating the Affordability Challenge

Analyzing the Factors Behind the Persistent Rise in Property Values

Australian Home Prices Reach New Heights: Navigating the Affordability Challenge?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In November 2025, Australia's housing market experienced a 1% month-on-month increase in home prices, bringing the national median value to A$888,941.
This follows a 1.1% rise in October, indicating a persistent upward trend in property values.
The growth was particularly pronounced in mid-sized state capitals, with Perth leading at a 2.4% increase.
Sydney and Melbourne saw more modest gains of 0.5% and 0.3%, respectively.

Tim Lawless, research director at property consultant Cotality, attributed the strong performance in cities like Perth to a combination of below-average listings and high buyer demand. However, this price surge comes amid a backdrop of worsening housing affordability, with the national dwelling value to household income ratio reaching record highs. Lawless noted that stretched affordability is likely to diminish borrowing capacity and credit access for many Australians.

In response to escalating housing costs, Prime Minister Anthony Albanese’s Labor government has committed to building 1.2 million homes by 2030 to alleviate pressure on the housing market and improve the availability of affordable dwellings. This initiative aims to address the supply-demand imbalance and provide more opportunities for first-time homebuyers.

For individuals looking to enter the property market, it's essential to stay informed about market trends and consider various financing options. Utilizing tools like home loan calculators and seeking professional advice can aid in making informed decisions aligned with personal financial goals.

Published:Thursday, 18th Dec 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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