Australian Property Prices Accelerate Again
Australian property prices are once again accelerating, with national dwelling values rising by 1.4% in Q2 2025, nearly twice the pace of wage growth, according to CoreLogic. This trend is worsening housing affordability and highlighting the ongoing imbalance between supply and demand.
Despite the federal government’s plan to build 1.2 million new homes by 2029, industry bodies forecast a shortfall of 262,000 dwellings by that time. While falling interest rates have boosted buyer sentiment, limited housing supply and sustained population growth in cities like Sydney, Brisbane, and Perth are driving prices to record highs.
Three-Bedroom Apartments Emerging as a Key to the Housing Crisis
In this context, three-bedroom apartments are increasingly seen as a sustainable solution. Experts say more families are shifting from detached houses to larger apartments in central locations to stay within school zones or reduce commuting times. However, such apartments remain scarce—only 13% of Sydney’s and 8% of Melbourne’s apartments have three bedrooms. Some developers are responding by incorporating more large units in new projects, but rising construction costs, rigid planning rules, and high land taxes remain significant barriers.
Interestingly, the recent sale of a high-end apartment in Sydney also reflects the strong market demand for this type of property. The luxury penthouse in Point Piper sold for $141.55 million, setting a new record for the highest residential sale in Australia. The property spans over 1,000 square metres and features a private lift, infinity pool, and sweeping harbour views. Industry professionals believe such transactions not only demonstrate strong demand from ultra-wealthy buyers but also reinforce the value of high-quality apartment living.
Overall, amid rising prices and growing affordability pressures, delivering well-designed, spacious apartments could be a critical lever for both government and developers to address Australia’s deepening housing crisis.
Related Articles:https://www.smh.com.au/property/news/luxury-sydney-apartment-sells-for-141-55m-setting-national-home-price-record-20250624-p5m9v7.html