How big was the property boom? Australian house prices soar to record heights

By Evlin DuBose · · 2 min read
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A fancy blue house on a wet street in the evening
Photo by Ralph Kelly.

The Australian Bureau of Statistics (ABS) has officially confirmed what we all guessed in 2021: housing prices went kaboom. 

According to their newly released data , Australian residential property prices in the capital cities ballooned by 23.7% throughout the year – the strongest annual growth on record. 

However, the headliners were not the classic Sydney-Melbourne duo we’d expect. Instead, the speedster capitals were:

  • Hobart (+30%)
  • Canberra (+29%)
  • Brisbane (+28%)
  • Sydney (+27%)
  • Adelaide (+24%).

Each of the above experienced their largest annual rise since the ABS began tracking house prices in 2003.

Meanwhile, Melbourne (+20%) trailed behind the pack despite experiencing its highest June quarter surge since 2010. Perth and Darwin brought up the rearguard, with only 16% and 13% rises, respectively.

Residential property price index graph from the ABS.

ABS head of prices statistics Michelle Marquardt remarked that these results were consistent with a host of market indicators, including seductively low fixed-rate home loans. 

“Record low interest rates and strong demand have continued to support growth in property prices,” she observed.

This growth pushed the total value of Australia’s 10.8 million residential homes to over $9.9 trillion in December 2021 (a $2 trillion increase from December 2020).

Australian mean dwelling prices, December quarter, bar graph of capital cities.

As a result, the mean price of Australian residential dwellings is now $920,000, with NSW registering as the priciest state with an average $1.2 million per property.

Australian housing affordability pushed to crisis point, but there is hope on the horizon for home-buyers

Orange smokey clouds at twilight above a white suburban house.
Photo by Gus Ruballo.

This latest announcement seems pretty grim, with the Real Estate Institute of Australia (REIA) estimating that borrowers spent an average of 37% of their incomes on mortgage repayments in December 2021. 

But while there are many justified calls for federal solutions to the affordability crisis, relief glints on the horizon for first time home buyers. 

Many experts predict that prices will peak at some point this year, with some estimating a drop of -10% in 2023. We may already be seeing the impending wobbles, since property prices in Sydney saw their first drop since 2020 just this month. 

Furthermore, fixed-rate home loans – whose affordability partially fueled the property boom – are poised to rise again later this year, which will likely cool the red-hot market. 

Though it can be hard to gauge where the housing market will take us specifically, home loan comparison and analysis of 2022’s property trends will be key to breaking in.

Looking for an edge in the property market? Off-market buying could be for you. 

Alternatively, you can browse and compare affordable home loan options below.

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Last updated 23 April 2025 Important disclosures and comparison rate warning*
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  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.65 % p.a.
    Initial monthly repayment
    $2,915
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    • Built by CommBank
    • The first home loan with an increasing discount (conditions apply)
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  • Promoted

    Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.78 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,927
    Go to site
    • $0 application fee to pay
    • Unlimited additional repayments
    • Apply in as little as 15 minutes
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    Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.91 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.
  • Promoted

    Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.96 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options
  • Promoted

    Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.83 % p.a.
    Initial monthly repayment
    $2,931
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.

  • 2-Year Discounted - Simple Home Loan Variable

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable for 24 months and then 5.74% p.a.
    Comparison rate
    5.69 % p.a.
    Initial monthly repayment
    $2,836
    Go to site

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.91 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.96 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options

  • Discounted Complete Package Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.64 % p.a.
    Variable for 24 months and then 5.89% p.a.
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $2,883
    Go to site
    • 100% offset account
    • Make additional repayments at any time
    • Get a fee-free credit card (T&Cs apply)

  • Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.69 % p.a.
    Variable
    Comparison rate
    5.70 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • Offset and non-offset options for flexible payments
    • No application and monthly account keeping fees
    • Get up to $4,000 cashback (T&Cs apply)
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

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