Property Insights and Reports
LongView | PEXA Whitepaper - What drives house prices in Australia?
By PEXA & Longview • 21 Feb 2023
Australia has one of the highest population growth rates in the world
Population growth rates in Australia are far higher than most developed countries.
Australian cities have unusual density profiles
High population densities are concentrated in the CBDs of Sydney, Melbourne, and Brisbane, with geographically large, low-density areas surrounding them.
Australia’s residential property market is characterised by high capital growth - and low yields
Australian rental yields have not kept up with the increases in property value.
Land value also accounts for the difference in growth between house and apartment prices over the long term
In Melbourne, freestanding houses have grown at 7% annually followed distantly by townhouses, medium-density apartments, and high-density apartments.
‘What Drives House Prices in Australia’ is the first Whitepaper in a three part series. View our second Whitepaper release to find out why private renting in Australia is a broken system.
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