The August 2025 Australian Property Market Update: Providence Property Group's Analysis
Here at Providence Property Group, we are committed to separating fact from fiction to help you make informed decisions. Our latest analysis of the Australian property market for August 2025 reveals one dominant theme: a powerful imbalance between soaring demand and critically low housing supply. This dynamic is creating significant upward pressure on prices across the nation.
For investors and homebuyers, understanding these core fundamentals is crucial. Our breakdown shows that while challenges exist, strategic opportunities are also emerging for those who know where to look. Let's delve into the key data and trends shaping the Australian property market right now.
Key Drivers of the Australian Property Market
The primary force shaping the market is exceptional demand fueled by record-high net overseas migration. With 245,890 new arrivals in just the first five months of the year, the pressure on our housing stock has never been greater. This demand is far outstripping the creation of new homes, a key insight from our study of the Australian property market.
Compounding this, housing supply remains critically constrained. Key supply statistics include:
Annual Need: Australia requires 250,000 new homes per year.
Annual Approvals: Only 181,000 homes were approved in the last year.
Available Listings: Total property listings are more than 20% below the five-year average.
Performance Across the Australian Property Market
Our analysis of capital city performance shows clear frontrunners leading the pack. These cities are demonstrating strong and sustained growth, creating significant equity for homeowners and investors.
Brisbane: The market leader, with property values growing 1.2% in August. This contributes to an annual gain of $75,000, which is around $1,400 every week.
Perth: Remains a top performer, showing robust and consistent growth.
Melbourne: Is showing renewed momentum, with weekly growth accelerating significantly.
These figures highlight the incredible speed at which the Australian property market can move in the right locations.
An Opportunity in the Australian Property Market: Units
While house price growth grabs the headlines, we believe a significant opportunity is currently being overlooked in the unit market. A record 48% price gap has opened up between houses and units, making apartments a highly attractive and affordable alternative for many buyers.
Two factors will likely drive strong demand for units in the near future:
Government Schemes: New deposit guarantees will make a far greater percentage of units eligible for financial support, boosting first-home buyer activity in this sector.
Migrant Demand: Our experience shows that many new migrants are comfortable with apartment living and see exceptional value in the Australian unit market, adding a new wave of buyer demand.