| Property Values |
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| Australian Property |
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Australia’s housing market has proven remarkably resilient over the past 40 years, often recording strong growth during periods of economic uncertainty, including high interest rates and global crises.
Some of the most standout years include 1988, when values surged by 31.2%, 2021 with 24.5% growth, and multiple peaks in the early 2000s- demonstrating that market performance is driven by more than monetary policy alone, with factors such as fiscal stimulus, population growth, and migration playing a major role.
Across four decades, price declines have occurred in only six periods, and with 2025 ranking as the 11th strongest year for annual growth, the long-term strength of the Australian property market remains clear.
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A forty-year analysis of home value growth from Cotality shows that Australia’s housing market has consistently defied conventional wisdom, delivering periods of exceptional growth under conditions that would typically be expected to slow it down.
From strong price surges during high interest rate environments to rapid growth amid global crises, the data makes one thing clear: housing outcomes are shaped by far more than monetary policy alone.
“Sometimes home values surge when you least expect it,” said Tim Lawless, Research Director at Cotality. “In 1988, with interest rates climbing toward 15%, Australian home values rose by more than 31%.”
He noted a similar pattern more recently. “In 2021, during a global pandemic with international borders closed, national home values increased by almost 25%.”
These standout years highlight the complex mix of forces that drive housing markets, including fiscal stimulus, credit conditions, migration trends and broader economic shocks.
The strongest annual growth years over the past four decades were:
1988: 31.2%
2021: 24.5%
2003: 18.1%
2001: 15.9%
1987: 15.3%
Against this long-term backdrop, 2025 ranked as the 11th strongest calendar year for home value growth over the past forty years – reinforcing the underlying resilience of Australia’s housing market.