Australia Real Estate Market Size, Share, Industry Statistics and Outlook 2034

Australia Real Estate Market Outlook

The Australia real estate market is valued at approximately USD 136.50 billion in 2024, with a strong growth trajectory anticipated due to recovering economic conditions, low interest rates, and high demand for residential properties. Major cities such as Sydney, Brisbane, and Perth have seen property values reaching record highs, fueled by a surge in housing demand. The market is projected to grow at a compound annual growth rate (CAGR) of 3.60% between 2025 and 2034, reaching a market value of approximately USD 194.42 billion by 2034.

The recovery of the Australian economy post-pandemic has significantly boosted the real estate sector, as consumer confidence and affordability improve. Low interest rates and favorable lending conditions are making homeownership more accessible, contributing to the growing demand for residential properties. Furthermore, government incentives, such as the First Home Owner Grant (FHOG) and other stimulus measures, along with increasing infrastructure developments, are expected to fuel long-term investment in the real estate market.

As the population continues to grow and urbanization increases, the demand for both residential and commercial real estate is expected to remain strong. The market’s future growth is also supported by increasing urban development, expanding infrastructure, and the rising popularity of property investment among Australians.

Australia Real Estate Market Trends

Several trends are influencing the Australian real estate market, which is evolving in response to changing consumer preferences, economic conditions, and industry innovations.

Increasing Demand for Residential Properties: Residential real estate, particularly in urban areas like Sydney, Melbourne, and Brisbane, continues to see the highest demand. The economic recovery has driven a strong resurgence in housing markets, particularly in the capital cities, as many Australians seek to upgrade to larger homes due to remote working arrangements or are entering the property market for the first time. Low interest rates have made homeownership more achievable for first-time buyers, further boosting residential demand.
Shift Toward Regional Areas: While major cities like Sydney and Melbourne remain key hotspots for real estate activity, there is a noticeable shift towards regional areas as well. As remote working and flexible working arrangements become more permanent, many Australians are opting to move to regional areas, attracted by lower property prices, better living conditions, and a higher quality of life. This shift is expected to continue growing as regional hubs become more connected with major cities through improved infrastructure and transport links.
Interest in Sustainable and Energy-Efficient Homes: Sustainability is becoming an increasingly important consideration for homebuyers and investors. The demand for energy-efficient homes, which offer lower running costs and reduced environmental impact, is on the rise. Green building certifications, such as the National Australian Built Environment Rating System (NABERS) and Green Star, are becoming more common in both residential and commercial real estate. Sustainable homes with energy-efficient designs, solar panels, and better insulation are highly sought after.
Digital Transformation and PropTech: The rise of PropTech (Property Technology) is revolutionizing how the real estate market operates. Digital tools and platforms that offer virtual tours, property valuations, and online leasing have become essential, particularly post-pandemic. The use of blockchain for property transactions, automated property management systems, and AI-driven property valuations are further enhancing the customer experience and streamlining the real estate process.
Government Incentives and Infrastructure Development: Government incentives to stimulate the real estate market, such as tax relief, grants, and subsidies for first-time homebuyers, are playing a crucial role in driving market activity. Additionally, the government's investment in infrastructure projects, such as transport systems and housing developments, is making certain regions more attractive for property investment. These initiatives are likely to continue supporting the growth of the real estate sector.

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Australia Real Estate Market Growth

The Australian real estate market is poised for consistent growth over the next decade, driven by several key factors:

Recovery and Economic Growth: Australia's economy is recovering from the pandemic, leading to increased consumer confidence and demand for both residential and commercial properties. The strong economic outlook and increasing disposable incomes are expected to drive the growth of the real estate market in the coming years. A stable economic environment, low unemployment rates, and robust consumer spending will continue to support demand in the housing sector.
Demand for Residential Properties: With a growing population and increased urbanization, residential properties, especially in major metropolitan areas, are in high demand. The ongoing shift towards larger homes due to remote work arrangements and changing lifestyle preferences is expected to continue driving the demand for housing. Additionally, the trend of downsizing in retirement will contribute to market growth, as older Australians seek more affordable and manageable housing options.
Government Support for First-Time Homebuyers: The Australian government's ongoing support for first-time homebuyers through various grants and schemes, such as the First Home Loan Deposit Scheme and First Home Super Saver Scheme, is expected to continue driving demand for residential properties. These incentives, combined with low interest rates, make homeownership more accessible, further stimulating market activity.
Urban Development and Infrastructure Projects: Ongoing and planned infrastructure projects, including new transport networks, shopping centers, and housing developments, are expected to enhance the attractiveness of certain regions. Areas with strong infrastructure development and transport connectivity are likely to experience increased real estate demand, particularly in suburban and regional markets.
Growing Interest in Commercial Real Estate: As businesses recover from the pandemic and adapt to the post-COVID economy, there is an increasing interest in commercial real estate, particularly for office spaces and industrial properties. Industrial real estate, in particular, is benefiting from the growing e-commerce sector, which demands warehouses, distribution centers, and logistics facilities. This trend is likely to support the commercial real estate market in the long term.

Market Segmentation

The Australian real estate market can be segmented by property type, business model, distribution channel, and region. These segments help identify key growth areas and market dynamics.

Breakup by Property Type
- Residential: Residential real estate is the largest and most significant segment in the Australian market, driven by demand for housing, apartments, and townhouses. The ongoing surge in homebuyers and investors looking to capitalize on rising property values is fueling this segment’s growth.
- Commercial: The commercial property market in Australia includes office buildings, retail spaces, and industrial real estate. The demand for commercial properties is expected to remain strong, with ongoing interest from both local and international investors. While the office market is undergoing transformation due to remote work trends, logistics and retail properties continue to perform well.
- Industrial: The industrial real estate segment is growing, driven by the e-commerce boom and increased demand for warehouses, logistics centers, and manufacturing facilities. As supply chain needs evolve, industrial properties are expected to experience strong demand, particularly in key regions like New South Wales and Queensland.
- Others: Other types of real estate include hospitality properties, such as hotels and resorts, as well as mixed-use developments that combine residential, commercial, and retail spaces. The demand for these properties is expected to grow as tourism and hospitality sectors recover post-pandemic.
Breakup by Business
- Sales: The sales segment represents the buying and selling of real estate properties. This segment is driven by both domestic and international investors, with residential sales being the primary focus in Australia’s real estate market.
- Rental: The rental market in Australia continues to grow, with demand for both residential and commercial rental properties. The rise of long-term rentals, particularly in urban centers, and the continued demand for short-term rentals, such as vacation homes, are contributing to this segment’s growth.
Breakup by Region
- New South Wales: New South Wales, with Sydney as its economic and cultural hub, remains the largest market for real estate in Australia. The demand for residential properties, particularly in inner-city areas, is high, with rising property values driving market activity.
- Victoria: Victoria, particularly Melbourne, is another major market for real estate. The state’s population growth and economic activity continue to drive demand for both residential and commercial properties.
- Queensland: Queensland’s real estate market, particularly in Brisbane, is expected to experience strong growth, driven by urban expansion, infrastructure development, and increasing demand for residential properties.
- Australian Capital Territory: The Australian Capital Territory, with Canberra as its capital, has a stable real estate market, driven by government demand and a growing population.
- Western Australia: Western Australia’s real estate market, particularly in Perth, is showing signs of recovery after a period of slower growth, with increased demand for residential and commercial properties.
- Others: Other regions, such as Tasmania and Northern Territory, also contribute to the overall real estate market, though to a lesser extent compared to the major states.

Market Key Players

Several major players dominate the Australian real estate market, offering a range of services in residential, commercial, and industrial sectors:

Hauss Pty Ltd.: Hauss is a prominent real estate agency in Australia, specializing in high-end residential properties and offering a range of property management services.
The Agency: The Agency is a leading real estate firm in Australia, providing a wide array of residential and commercial property services across the country.
McKean McGregor Pty Ltd.: McKean McGregor is a well-established real estate company specializing in residential and commercial property sales, as well as property management services.
Harris Real Estate Pty Limited: Harris Real Estate is known for its expertise in residential property sales and property management, with a strong presence in key Australian cities.
McGrath Limited: McGrath is one of Australia’s leading real estate agencies, offering residential, commercial, and rental services across the country.
eXp Australia Pty Ltd.: eXp is a global real estate company that has gained a strong foothold in Australia, offering residential and commercial property services through a cloud-based model.
CBRE Pty Limited: CBRE is a global real estate services firm with a significant presence in Australia, offering services in commercial real estate, including property management, leasing, and investment advisory.
Luxury Real Estate Agents: A group of specialized agencies in the luxury real estate sector catering to high-net-worth individuals looking for premium residential and commercial properties.

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