Five-Year High Falls Short of 2000s Housing Boom

Home values across Australia have risen by 39.1 per cent during the past five years but remains below historic peaks of the 2000s and 1980s.

CoreLogic’s April Housing Chart Pack revealed that during that period $230,000 has been added to the national median home value. 

The growth of the past five years reflected strong housing demand, low supply and a resilient economy, CoreLogic economist Kaytlin Ezzy said. 

“Apart from a few months of declines, values have had strong upward pressure over the past five years, driven by low stock levels and increased demand,” Ezzy said.

“But this growth cycle remains moderate compared to earlier periods, when financial deregulation, strong economic growth and favourable demographic shifts helped fuel remarkable value growth.”

The previous peaks

During the five years to March of 1989, home values nationally grew by 75.5 per cent, and by 79.7 per cent for the five years to December of 2003.

Economic policy changes and low interest rates after the 1982-1983 recession drove the peak of the 1980s.

“Additionally, the introduction of capital gains taxes in 1985, with an exemption for primary residences, drove an increase in owner occupier demand,” Ezzy said.

Another period of low interest rates after the Asian Financial Crisis and the mining boom restart in the 2000s drove the 2003 peak.

“Changes to capital gains taxes benefiting investors, and the introduction of first-home buyer grants, also helped stimulate housing demand in the 2000s,” Ezzy said. 

In dollar terms, the rise over the past five years is more than the growth during the 1980s and 2000s. 

The rise of $140,000 for the five years to December 2003 compared to the $230,000 to April of this year.

Changes in home values to March, 2025

▲ Source: CoreLogic

CoreLogic also estimated that the combined value of residential real estate rose to $11.3 trillion in March as national home values rose 0.7 per cent over the rolling quarter, with the capitals up by 0.5 per cent and regions by 1.4 per cent. 

March estimates list 42.553 sales nationally, bringing the rolling 12-month count to 528,212 sales. 

That’s an annual increase of 4.6 per cent compared to 2024 and 4.1 per cent over the previous five-year period though it is 2.1 per cent lower than the peak in December 2024 of 539,743.

The CoreLogic report indicates that properties are on the market for longer with the national medium time to sell increasing from 30 days a year ago to 40 days in the first quarter of 2025.

Median vendor discounting rates increased during the second half of 2024 and into early 2025 but have now dropped to -3.5 per cent over the three months to March. 

Rents have increased over the rolling 12-month period by 3.8 per cent in the year to March.