According to the ABS Total Value of Dwellings release for December 2025, the total value of residential property across Australia has hit $12.3 trillion. That’s not a typo. Twelve point three trillion dollars.
In just one quarter, dwelling values rose by $384.8 billion. The mean dwelling price across the country now sits at $1.074 million, and the total number of dwellings has grown to 11.45 million up by 54,100 in the quarter.
Prices rose in every single state and territory. Western Australia and Queensland continue to lead the charge with strong growth, while NSW holds the highest mean dwelling price in the country. The Northern Territory remains the most affordable end of the scale.
What Does This Mean for You?
Whether you’re a first home buyer, a homeowner thinking about refinancing, or a property investor these numbers affect you directly.
- Deposits Are Getting Bigger
When property prices go up, so does the amount you need to save for a deposit. If you’re aiming for the traditional 20% to avoid Lenders Mortgage Insurance (LMI), a $1 million-plus property means you’re looking at a $200,000+ deposit just to get started.
That’s a big number. And the longer it takes to save, the more prices can move in the meantime.
This is exactly the kind of situation where a good home loan strategy and the right broker can make a real difference. There are solutions available that let you enter the market with a smaller deposit while still getting a competitive loan structure.
- Borrowing Capacity Planning Matters More Than Ever
With higher property prices come larger loan amounts. A bigger loan doesn’t just mean bigger repayments; it also affects how lenders assess your ability to service the debt. Banks stress-test your borrowing capacity at a higher interest rate than what you’ll actually pay. When loan sizes grow, this assessment becomes even more important to plan around.
If you’re not sure how much you can genuinely borrow or what your repayments would look like, our borrowing capacity calculator is a good place to start.
Different States, Different Strategies
NSW has the highest mean dwelling price in the country, which means buyers in Sydney and the surrounding areas are dealing with some of the most challenging affordability conditions anywhere in Australia. But strong growth in WA and QLD also means those markets are moving fast, and timing matters. Understanding how regional price differences affect what you can borrow and from which lender is something that’s easy to get wrong without the right advice.
The Numbers Are Moving: Your Finance Should Too
A $12.3 trillion property market doesn’t sit still. Prices, lending policies, and interest rates all shift regularly, and what worked for someone else’s situation a year ago might not be the right fit for yours today. That’s why getting proper advice from someone who knows the lenders, knows the market, and actually takes the time to understand your situation is more valuable now than it’s ever been.
Whether you’re buying your first home, growing your investment portfolio, or just wondering if your current loan is still competitive, we’re here to help.
To take a step ahead, contact us at KM Financial Services and call us at 0402879531. Book a free appointment with our team and let’s work out what’s possible for you.
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