Where Does $1 Million Go Furthest in Australia’s Housing Market?
New data from Cotality reveals that one in three homes across Australia is now worth a million dollars or more. In capital cities, the proportion is even higher: almost half of all homes are that pricey. The regions are catching up, too, as demand beyond the city spreads out.
The luxury category is increasingly becoming the new normal, and for many buyers, that means recalibrating what a million-dollar home looks like. A few years back, one million dollars would buy a spacious family home near the city.
Real estate prices have jumped in competition for hot properties around the country, transforming what buyers on a budget might be able to afford.
There has also been significant growth in regional areas, where the proportion increased from 0.5% to 19.4% over the past 10 years.
Sydney Remains Priciest
Sydney tops the nation with 64.4% of houses costing more than $1 million. Not even Sydney’s grand houses were worth this much a decade ago. Today, even three-bedroom homes are selling for roughly $1.3 million, with larger homes typically fetching $2 million or more.
Brisbane’s Fast Growth
Brisbane was the site of the most significant change. -In 2020, just 6.2% of homes were valued at over $1 million. Today, that number has risen to 40.2%. With a median house value of $990,000, Brisbane would officially crack a $1 million median house in the latter part of the year.
Melbourne Holds Steady
Melbourne has 30.9% of dwellings worth more than $1m. That’s not much lower than its high of 33.1% this year, but the share is rising again. In 2015, just 12.4% of homes were in this price range.
Adelaide and Perth Close Behind
Adelaide and Perth have also experienced solid advances. In Adelaide, the number of homes over $1 million surged from 4.2% in 2020 to 27.8% in 2025. Perth has seen a similar trend, going from 6% to 26% over the same period.
Hobart and Darwin Keep Costs Down
Hobart’s proportion of million-dollar-plus homes fell from 20.3% in 2022 to 11.9% in 2025. The increase in interest rates and slower job growth could be potential factors.
Darwin is still the nation’s cheapest capital city, with only 1.3 percent of homes valued above $1m, little change from 10 years ago. Diminished demand and a reduced economy have helped keep prices from rising much.
A Bigger Price Tag Generates Bigger Debt
Over the last 10 years, home values in Australia have increased by 67.3%. As prices go up, so does homeowner debt. According to the Reserve Bank, the share of housing debt to income stood at 135% at the end of 2024, up from just over 122% in 2015.
By 2025, $1 million will be barely sufficient to secure a large or well-situated home in many Australian cities. Now that more suburbs are developing into million-dollar villages, the divide between haves and have-nots is deepening. Property values are rising across the country, and suburbs are crossing the million-dollar line faster than ever. Without a solid buying strategy, you could end up overpaying or missing out altogether.
Huddle for Property supports growing property portfolios by finding the right investment opportunities across Australia’s emerging markets. Our team of licensed experts knows the local markets inside out, and they work entirely for buyers. Whether you’re looking to upgrade, invest, or buy your first home, they’ll guide you through every step of the process, from suburb selection to settlement.
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