Sydney topped the residential rental pricing market in Australia in March 2025, with house rent prices reaching an average of *** Australian dollars per week. The average weekly rent for a unit in Sydney was the highest among all capital cities in the country, followed by Brisbane.

Average House Prices in Australia increased to 1002.50 AUD Thousand in the first quarter of 2025 from 995.60 AUD Thousand in the fourth quarter of 2024. This dataset includes a chart with historical data for Australia Mean Dwelling Price.

Housing Index in Australia increased to 183.90 points in the fourth quarter of 2021 from 175.60 points in the third quarter of 2021. This dataset provides the latest reported value for - Australia House Price Index - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

In the first quarter of 2025, the house price-to-rent ratio in Australia was estimated at 129, marking a decrease from the same quarter of the previous year. An indicator of how strong the property market is, the house price-to-rent ratio was calculated by dividing nominal house prices by rent price indices. Within the given period, after reaching a peak in the first quarter of 2022, the price-to-rent ratio decreased each quarter until the second quarter of 2023. From then on, the house price-to-rent ratio fluctuated, but largely trended downwards. Is Australia in a property bubble? Many industry experts believe the country is in a property bubble, indicated by the rapid increase in Australian property market prices to the point that they are no longer relative to incomes and rents, followed by a decline. The house price-to-income ratio was on an upward trend between the third quarter of 2022 and the second quarter of 2024. Nonetheless, after hitting its peak, it declined to 119.2 in the fourth quarter of 2024. Rental property demand In March 2025, the rental vacancy rate, which indicates how many properties are available for rent out of all the rental stock, was relatively high in Melbourne, Canberra, and Sydney. That year, the average weekly rent prices varied across the country depending on the city, with the highest average weekly rents for houses and units in Sydney. Hobart, on the other hand, had the most affordable rental properties across Australia's capital cities.

Australia’s real house price index increased to ***** in the first quarter of 2025. House prices fluctuated over the reported period compared to the base year of 2015, experiencing a sharp increase throughout 2021, with the country’s house price index peaking in the first quarter of 2022 at *****. Prospective homeowners priced out of the market Recent house price increases reflect the ongoing challenges of housing affordability in Australia. Property prices largely outpace income growth, reigniting discussions about whether the country is stuck in a property bubble, a topic that has been debated for over a decade. The country’s house price-to-income ratio hit ***** in the second quarter of 2024, the highest ratio recorded over the past five years, making it increasingly difficult to get on the property ladder. Unaffordable rental conditions Australia’s rental market has also seen challenges, with the rent price index continuing to climb throughout 2024 into the first quarter of 2025, making the prospect of renting less appealing. As of March 2025, the average weekly house rent price in Sydney stood at *** Australian dollars, the highest across the country’s major cities. Canberra, Darwin, and Perth were the next most expensive markets for house rents, while Hobart was the most affordable capital city for both house and unit rent prices.

Rent Inflation in Australia decreased to 4.50 percent in the second quarter of 2025 from 5.50 percent in the first quarter of 2025. This dataset includes a chart with historical data for Australia Rent Inflation.

The house price-to-income ratio in Australia was ***** as of the fourth quarter of 2024. This ratio, calculated by dividing nominal house prices by nominal disposable income per head, increased from the previous quarter. The price-to-income ratio can be used to measure housing affordability in a specific area. Australia's property bubble There has been considerable debate over the past decade about whether Australia is in a property bubble or not. A property bubble refers to a sharp increase in the price of property that is disproportional to income and rental prices, followed by a decline. In Australia, rising house prices have undoubtedly been an issue for many potential homeowners, pricing them out of the market. Along with the average house price, high mortgage interest rates have exacerbated the issue. Is the homeownership dream out of reach? Housing affordability has varied across the different states and territories in Australia. In 2024, the median value of residential houses was the highest in Sydney compared to other major Australian cities, with Brisbane becoming an increasingly expensive city. Nonetheless, expected interest rate cuts in 2025, alongside the expansion of initiatives to improve Australia's dwelling stock, social housing supply, and first-time buyer accessibility to properties, may start to improve the situation. These encompass initiatives such as the Australian government's Help to Buy scheme and the Housing Australia Future Fund Facility (HAFFF) and National Housing Accord Facility (NHAF) programs.

Student Micro-Apartment Market Outlook

According to our latest research, the global student micro-apartment market size reached USD 9.2 billion in 2024 and is projected to grow at a robust CAGR of 8.4% from 2025 to 2033, attaining a forecasted market value of USD 18.8 billion by 2033. This significant growth is primarily driven by the increasing demand for affordable, flexible, and well-located student housing solutions in urban centers worldwide, as higher education enrollment continues to surge and urbanization intensifies.

One of the primary growth factors propelling the student micro-apartment market is the ongoing surge in global student mobility. As more students pursue higher education abroad, particularly in countries like the United States, United Kingdom, Australia, and Canada, the demand for compact, cost-effective, and conveniently located accommodation near educational institutions has soared. These micro-apartments offer students a blend of privacy, affordability, and community living, making them an attractive alternative to traditional dormitories and private rentals. Additionally, the rising costs of urban real estate have made large-scale student housing projects less viable, pushing developers to focus on micro-apartments that maximize space efficiency while minimizing rental costs.

Another key driver is the evolving lifestyle preferences of Generation Z and Millennial students, who prioritize sustainability, flexibility, and connectivity in their living arrangements. Student micro-apartments are designed to cater to these preferences by incorporating smart technology, energy-efficient appliances, and communal amenities such as study lounges, gyms, and social spaces. The modular nature of many micro-apartment projects enables rapid construction, scalability, and adaptability to changing student needs, further fueling market growth. Moreover, universities and private developers are increasingly partnering to offer purpose-built student accommodations (PBSA), integrating micro-apartments into campus master plans to enhance student satisfaction and retention.

The market is also benefiting from the expansion of higher education institutions into secondary and tertiary cities, especially in emerging economies across Asia Pacific and Latin America. These regions are witnessing a boom in university enrollments, driven by favorable demographic trends and government initiatives to improve access to education. As a result, there is a heightened need for affordable student housing options that can be quickly deployed and managed efficiently. The growing acceptance of alternative rental models, such as co-living and shared micro-apartments, is further diversifying the market landscape, attracting investment from real estate funds, institutional investors, and proptech startups.

Regionally, Europe and North America remain the largest markets for student micro-apartments, accounting for a combined share of over 60% of global revenues in 2024. However, the Asia Pacific region is emerging as the fastest-growing market, with a projected CAGR of over 10% during the forecast period. Countries like China, India, and Australia are experiencing unprecedented growth in international student inflows and domestic university enrollments, driving robust demand for modern, affordable student housing solutions. Meanwhile, Middle East & Africa and Latin America are gradually catching up, supported by urbanization, rising middle-class incomes, and strategic investments in educational infrastructure.

Apartment Type Analysis

The student micro-apartment market is segmented by apartment type into studio, loft, shared, modular, and others, each catering to distinct student preferences and budget considerations. Studio apartments remain the most popular choice, offering a self-contained living space that combines bedroom, kitchenette, and bathroom facilities in a compact footprint. This format appeals to studen

Australia Consumer Price Index (CPI): Perth: Housing: Rents: Rents data was reported at 124.200 2011-2012=100 in Mar 2025. This records an increase from the previous number of 122.100 2011-2012=100 for Dec 2024. Australia Consumer Price Index (CPI): Perth: Housing: Rents: Rents data is updated quarterly, averaging 56.300 2011-2012=100 from Sep 1972 (Median) to Mar 2025, with 211 observations. The data reached an all-time high of 124.200 2011-2012=100 in Mar 2025 and a record low of 12.200 2011-2012=100 in Sep 1972. Australia Consumer Price Index (CPI): Perth: Housing: Rents: Rents data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.I007: Consumer Price Index: 2011-12=100: Eight Capital Cities.

Australia Consumer Price Index (CPI): Canberra: Housing: Rents: Rents data was reported at 124.000 2011-2012=100 in Mar 2025. This records an increase from the previous number of 123.600 2011-2012=100 for Dec 2024. Australia Consumer Price Index (CPI): Canberra: Housing: Rents: Rents data is updated quarterly, averaging 55.700 2011-2012=100 from Sep 1972 (Median) to Mar 2025, with 211 observations. The data reached an all-time high of 124.000 2011-2012=100 in Mar 2025 and a record low of 10.100 2011-2012=100 in Sep 1972. Australia Consumer Price Index (CPI): Canberra: Housing: Rents: Rents data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.I007: Consumer Price Index: 2011-12=100: Eight Capital Cities.

The New Farm area was the most expensive housing suburb in Brisbane, Australia as of March 2025, with a median property value of around *** million Australian dollars. The Ascot suburb had the next highest prices for housing in Brisbane, at around **** million dollars.

Perth's Cottesloe area was the most expensive housing suburb in Western Australia as of March 2025, with a median property value of around *** million Australian dollars. The Dalkeith suburb had the next highest prices for housing, at just under *** million dollars.

CPI: MoM: Housing: New Dwelling Purchase by Owner-Occupiers data was reported at -0.100 % in Mar 2025. This stayed constant from the previous number of -0.100 % for Feb 2025. CPI: MoM: Housing: New Dwelling Purchase by Owner-Occupiers data is updated monthly, averaging 0.200 % from Oct 2017 (Median) to Mar 2025, with 90 observations. The data reached an all-time high of 2.500 % in Dec 2021 and a record low of -1.000 % in Feb 2021. CPI: MoM: Housing: New Dwelling Purchase by Owner-Occupiers data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.I002: Consumer Price Index: Sep 2017=100: Monthly.

As of the end of March 2025, the average mortgage interest rate for Australian owner-occupier borrowers was around *** percent. In comparison, the average investor interest rate was approximately *** percent. These rates refer to outstanding housing loans from banks and registered financial corporations. New loans financed in that month had even similar interest rates, at *** percent for owner-occupiers and *** percent for investors, respectively.

The Bellevue Hill area was the most expensive housing suburb in Sydney, Australia as of March 2025, with a median property value exceeding *** million Australian dollars. The Vaucluse suburb had the next highest prices for housing, at around **** million dollars.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

As at February 2025, couples aged 25 to 34 years old in Sydney, Australia spent an average of around **** percent of their household income on mortgage repayments for an entry-priced house. In comparison, couples in the same age bracket in Darwin were spending around **** percent of their household income on mortgage repayments for a house.