We service all areas of Australia, why not speak to us today about your needs...

April 12, 2023

Australia’s Property Median Prices Since COVID-19

Australia’s property median price has been a topic of great interest and concern in recent years. The median price is the point at which half of the properties sold are above that price and half are below it. In Australia, the property market has experienced significant fluctuations in median prices over the years, with some areas seeing steady increases, while others have experienced declines. In this blog, our property investment advisor has noted key factors on the evolution of Australian property median prices since the pandemic and the possible contributors that drive the prices.

Demand > Supply

One of the key factors that influence the property market is supply and demand. In recent years, the demand for housing has increased, and the supply has not kept up. This has resulted in a surge in property prices across the country, especially in major cities such as Sydney and Melbourne. According to recent data, the median property price in Sydney is around $1.4 million, while in Melbourne, it is around $1 million.

The high median property prices in these cities are due to a combination of factors. Firstly, the population in these cities has been steadily increasing, which has led to a surge in demand for housing. Secondly, the supply of new housing has not kept up with the demand, as there are constraints on land availability, zoning regulations, and construction costs. This has resulted in a shortage of housing, which has driven up prices.

While Sydney and Melbourne are the most expensive cities in Australia in terms of median property prices, other cities such as Brisbane, Adelaide, and Perth also have relatively high median prices. According to recent data, the median property price in Brisbane is around $620,000, while in Adelaide, it is around $540,000, and in Perth, it is around $520,000.

The impact of COVID-19, remote work and lifestyle changes.

Amid the pandemic, our property investment advisor saw a notable shift for Australians relocating from metropolitan areas to regional locales. With remote work becoming more prevalent, individuals can avoid daily commutes and opt for affordable, low-density regions. Consequently, suburbs neighboring major cities have gained traction, causing a surge in real estate demand and driving up home prices. Because of the need for space, more people wanted to live in homes rather than apartments which exacerbated the property price difference between houses and apartments even more.

Government incentives

One of the challenges with high property prices is that it can make it difficult for first-time buyers to enter the property market. This can lead to a generational divide, where younger generations are struggling to afford their own homes, while older generations who have already purchased homes are benefiting from the increase in property values.

To address this issue, the government has introduced various measures to make it easier for first-time buyers to enter the property market. For example, the First Home Loan Deposit Scheme provides eligible first-time buyers with a guarantee of up to 15% of the property purchase price, allowing them to buy a home with a deposit as low as 5%.

The government has also introduced stamp duty concessions and other financial incentives to help first-time buyers. For instance, the NSW government has recently launched the First Home Buyer’s Choice as an initiative to make home ownership easier. First home buyers can choose between paying stamp duty or a smaller annual property tax. For further information about this scheme, read our blog “The NSW Government’s First Home Buyer Choice Scheme Explained”.

With government incentives, this gives people more purchasing power as it encourages first-time homebuyers and investors to enter the market, driving up demand and contributing to the increase in median prices.


Properties in desirable locations can play a crucial role in determining the median property prices in Australia. The more desirable the location, the greater the demand and the lower the supply. There are various factors that can have a significant impact on its value. Some of these factors include:

  • Proximity to Major Cities: Properties located close to major cities, such as Sydney, Melbourne, Brisbane, and Perth, tend to have higher median prices due to the increased demand for housing in these areas. These cities offer better job opportunities, well-established infrastructure, and a wide range of amenities, which make them attractive to both homebuyers and investors.
  • Infrastructure and Amenities: The availability and quality of local infrastructure and amenities, such as public transportation, schools, hospitals, shopping centers, and recreational facilities, can greatly influence median property prices in a particular area. Areas with well-developed infrastructure and a diverse range of amenities tend to have higher median prices, as they offer greater convenience and a higher quality of life to residents.
  • Neighborhood Quality: The overall quality of a neighborhood, including factors such as safety, cleanliness, and the presence of well-maintained public spaces, can also impact median property prices. Desirable neighborhoods with low crime rates, well-maintained parks, and clean streets often command higher median prices than less attractive areas.
  • Economic Growth and Job Opportunities: Areas experiencing strong economic growth and offering a range of job opportunities tend to attract more people, which in turn drives up demand for housing and leads to higher median property prices. Conversely, areas with stagnant economies and limited job prospects may experience lower demand and lower median prices.
  • Population Growth and Migration Patterns: Population growth, both through natural increase and migration, can influence median property prices in a given area. Regions with growing populations typically experience an increased demand for housing, pushing up median prices. This has been particularly evident in regional areas and outer suburbs, where remote work and lifestyle changes have driven an influx of people seeking more affordable properties and a better quality of life.
  • Environmental Factors: Natural features such as beaches, parks, rivers, and scenic views can contribute to the desirability of a location and impact median property prices. Properties with water views or those located close to popular beaches or parks often command a premium due to their attractiveness and limited supply.


It’s important to note that the performance of the Australian property market can vary significantly across regions and property types. For example, while house prices have generally been rising across the country, the unit market in some cities has experienced more modest price growth or even declines. While high median prices can make it difficult for first-time buyers to enter the property market, the government has introduced various measures to help address this issue.

In 2023, Australia’s median property price fell just 0.1% in February, according to CoreLogic, marking a sharp reduction in the rate of decline. Comparing the six months between August 2022 and January 2023, prices fell 1.6%, 1.4%, 1.2%, 1.0%, 1.1% and 1.0%. It remains to be seen how the property market may start to slow down, but it is likely that high demand and limited supply will continue to maintain median property prices in Australia’s major cities.

As mentioned in the factors above, the COVID-19 pandemic has significantly impacted the way people live and had a huge impact on the media property prices. The shift towards remote work, the desire for larger living spaces, an increased emphasis on lifestyle and outdoor spaces and the increase in population growth when borders opened, have all contributed to the changes in demand and property prices. Additionally, the migration to regional areas and outer suburbs has further impacted median property prices across different locations in Australia.

Need further information about existing market trends? Our property investment advisor is ready to share their knowledge with you, contact us today.

Get $300 OFF Your Property Plan!

Tailored for first home buyers, investors, and NDIS SDA seekers. Discover your exclusive benefits now!

Code: property300