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

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.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 19 February 2025 Important disclosures and comparison rate warning*
What are your home loan needs?

Your loan-to-value ratio (LVR): 50%

Loan amount and LVR will affect interest rates.

  • Promoted

    Unloan Variable Home Loan

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Unloan has confirmed they will decrease rates by 0.25% p.a. effective 21 February 2025. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Promoted

    Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.08 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Loans.com.au has confirmed they will decrease rates by 0.25% p.a. effective 4 March 2025. Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Promoted

    OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    5.55 % p.a.
    Fixed 2 years
    Comparison rate
    6.05 % p.a.
    Initial monthly repayment
    $2,855
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Fast approval times. Min 30% deposit required. Borrow up to $10,000,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    5.55 % p.a.
    Fixed 2 years
    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $2,855
    Go to site

    Convenient offset account. No upfront or ongoing fees. Free extra repayments and redraw facility. Fast approval times. Min 30% deposit required. Borrow up to $10,000,000.

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $2,915
    Go to site

    Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.

  • Fixed Rate Home Loan

    • Owner Occupier
    • LVR<80%
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    6.21 % p.a.
    Initial monthly repayment
    $2,915
    Go to site

    Get repayment security with fixed rates from one to five years. Free extra repayments of up to $25,000 during the fixed rate period. Fix a portion of your loan and leave the rest variable. Choose to repay weekly, fortnightly, or monthly.

  • Everyday Home Loan

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.94 % p.a.
    Variable
    Comparison rate
    5.99 % p.a.
    Initial monthly repayment
    $2,978
    Go to site

  • Unloan Variable Home Loan

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Unloan has confirmed they will decrease rates by 0.25% p.a. effective 21 February 2025. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

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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.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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