Australian residential property market now worth $12 trillion

Article by Alison Cheung Communications Manager 29 October 2025

Australia’s property market has reached another major milestone, with the total value of residential real estate climbing to $12 trillion for the first time, according to Cotality. That’s an estimated increase of $900 billion in the past 12 months. To put this into perspective, the country’s property market is now 2.8 times the total value of Australian superannuation assets. 

Source: Cotality, RBA, APRA, ASX

The housing market has reached the $12 trillion mark faster than the industry expected, thanks to a sharp lift in values in October 2025. Just weeks ago, experts predicted that the milestone could be reached by the end of 2025, reflecting just how fast the market can move.

The housing market is now more than double the size it was a decade ago, with a significant chunk of that growth (about $5 trillion) happening in just the past five years. Meanwhile, outstanding mortgage debt sits at $2.5 trillion.

Rebalancing market share across the states

At the same time, where that value sits across the country is changing. Western Australia, Queensland and South Australia now hold a bigger slice of the housing market than they did in 2020, with values jumping 85%, 80% and 78% over the past five years.

New South Wales and Victoria, on the other hand, now account for a smaller portion of the total. Victoria has seen the biggest shift. Its share of the national housing market has slipped from 29% five years ago to 23.6% as of October. For property investors, this market shift will change where they see opportunities, especially for those looking beyond the traditional hotspots.

Darwin emerges as Australia’s growth hotspot 

The strongest growth story right now? Darwin. 

Since the first of three rate cuts this year in February 2025, Darwin suburbs have been leading the nation, dominating the top five growth suburbs. Between the end of February and September 2025, Wanguri and Durack both surged by 20.1%, followed closely by:

• Moulden (18.9%)

• Gray (18.7%)

• Woodroffe (18.7%). 

Cotality’s Head of Research for Australia, Eliza Owen said the data “highlights a broader trend of Darwin leading Australia’s capital growth trend”, with Darwin home values up by more than 13% since the year began. 

“It’s a relatively affordable market, and investors may be taking note of high yields and rapid value increases.”

For comparison, national dwelling values rose by 2.8% in the three months to October 2025 quarter, which is the largest quarterly increase since July 2023.

Inner-city Sydney and Melbourne lag behind

While cities like Darwin and Perth are powering ahead, Sydney and Melbourne are home to most of the suburbs experiencing declines since the first rate cut. 

The steepest falls have been concentrated in inner-city suburbs with high-density units, like:

• Milsons Point, Sydney (-7.1%)

• Kirribilli, Sydney (-6.3%)

Affordable regions still in focus

Beyond the capitals, some of the most affordable regional areas also recorded standout results. 

The top-performing regional market was Boggabri in regional NSW, climbing by 20.1% in the same period. Rochester in regional Victoria shot up by 19.4%. Both markets have a median value of less than $400,000, which appear to be a drawcard for buyers. 

“With other capital city and major regional markets soaring in value over the past few years, it seems like buyers are targeting what is left of the affordable land and housing across the country as interest rates fall and rents re-accelerate,” Owen added. 

What’s next?

From here, the pace of growth will still depend on interest rates, inflation and how much new housing comes onto the market. But for now, the latest figures show that housing remains a major driver of household wealth. It’s clear that opportunities are spreading more widely across Australia’s states and territories, not just staying concentrated in Sydney and Melbourne.

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Disclaimer: The information enclosed has been sourced from Cotality and is provided for general information only. It should not be taken as constituting professional advice.   

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