Groundswell Property Market Insights
Listings Jump, Luxury Deals Surge, and Land Costs Hit New Highs: Key Insights as at 14 June 2025
Welcome to this week’s edition of Groundswell Property’s Market Insights, where we cut through the media noise and deliver real, data-driven updates on Australia’s ever-changing property market.
Tania Richardson, Unsplash
This week’s headlines offer a revealing look at a market where confidence is lifting, but challenges remain.
We’re seeing more properties hitting the market, strong demand in the luxury sector, and land prices rising sharply—despite declining sales volumes.
Whether you're looking to buy, build or grow your portfolio, the current environment highlights the importance of strategy, timing and expert guidance.
Key Insights:
Listings Rise Across the Country
Total listings surged 5.9% in May, with Perth, Canberra, and Sydney leading the annual increases.
South Australia Tops Homebuilding Activity
SA leads the national rankings for new builds and renovations, as NSW and VIC drop due to costs and regulations.
Luxury Property Sales Soar
$5M+ property sales are up 55% since 2020, with strong activity in Sydney, Melbourne, and the Gold Coast.
Land Prices Reach Record Highs
Median lot price hits $369,530—up 8% year on year—even as sales volumes drop 5.7%.
Apartment Supply Tightens
Completions are falling, particularly in Sydney and Melbourne, while Brisbane apartment prices surge 20% year on year.
Listings Lift
Australia’s residential market has recorded a surge in the number of properties listed for sale.
New SQM Research data shows total listings increased by 5.9% in May compared to the previous month.
It says that the increase lifted the number of properties being offered for sale nationally to 256,628, which is 1.5% higher than at the same time last year.
Year on year, listings in Perth are up by 20.5%, followed by Canberra, up 10.3% and Sydney, which is up by 9.8%.
Hobart listings are up 6.1% and Adelaide listings are up 3.8%.
Listings year on year are down 3.8% in Brisbane and 0.6% in Melbourne, while Darwin had the biggest decline of 28.4%.
SQM Research managing director Louis Christopher says the increase is not unexpected.
“As expected, we saw a large lift in listings following the federal election. The bounce in new listings indicates renewed confidence,” he says.
He says at the same time, older stock continues to accumulate in cities such as Sydney and Melbourne, suggesting that many vendor pricing expectations may still be out of step with the market.
SA Leads The Way
Australia’s top locations for home building and renovation have been revealed, with South Australia leading the way.
The Housing Industry Association (HIA) Housing Scorecard, which compares levels of activity in across home building, renovations, lending and population growth, shows South Australia is well ahead of every other state.
Western Australia was second for activity, followed by Queensland, Victoria, New South Wales, Northern Territory, the ACT and Tasmania.
Australian Bureau of Statistics data shows that South Australia’s total construction work done reached $4.59 billion in 2024, a 7.7% increase over the past year.
HIA senior economist Thomas Devitt says New South Wales and Victoria have slipped in the rankings as land costs, punitive taxes and “obstructionist regulations” put pressure on home building activity and drive many residents interstate.
“This is why the outlook for homebuilding across different markets is going to depend on the ability of state policymakers to bring affordable shovel-ready land to market and help reduce costs and regulations on home buyers, investors and the industry,” he says.
Luxury Sales On The Rise
Housing affordability issues have done nothing to dampen enthusiasm for Australia’s luxury property market, with the number of homes selling for more than $5 million doubling in the past five years.
Research by Westpac and Cotality shows there were 3295 sales of $5 million-plus properties in 2024, up 55% since 2020.
New South Wales dominated the market with 2153 sales for $5 million or more in 2024, with the harbourside suburb of Mosman topping the list with 148 sales.
Well behind NSW in second place is Victoria with 569 sales, while there were 380 sales in Queensland, 159 in Western Australia and 24 in South Australia. The ACT had just 9 sales for more than $5 million, and the Northern Territory had one.
It wasn’t just the capital cities chalking up the prestige deals, with 343 regional sales for more than $5 million in 2024.
The Gold Coast market accounted for 40% of Queensland’s $ 5 million-plus sales.
Land Costs Keep Rising
The median price of a block of land hit a record high of $369,530 in the final quarter of 2024.
Analysis of 52 of Australia’s major housing markets shows land lot prices are 8% higher than a year ago.
The HIA-Cotality Residential Land Report says this increase is far more substantial than price growth in 2022 and 2023.
During the same period, the number of lots of land sold was down by 5.7%.
The report says the fact that prices increased at a time when sales decreased reinforces the fact that there is a shortage of shovel-ready land.
Cotality Economist Kaytlin Ezzy says this is a significant barrier preventing the delivery of new housing stock to the market.
She says while some of the previous hurdles in delivering new detached housing, including material and labour shortages, have abated, land availability and affordability remain significant blockers.
Real Capital Analytics data shows the cost of land for housing development has risen by 75% in the past five years, with median development site costs going from $4.8 million in 2020 to $8.5 million in 2025.
Apartment Delivery To Tighten
Demand for apartments and a shortage of supply continue to drive up prices in the first quarter of 2025, according to new analysis by JLL.
JLL’s Q1Residential Dynamics report backs up findings by the Australian Bureau of Statistics that the number of apartment developments is slowing.
ABS data shows that nationally, 5,612 apartments were approved across March and April, compared with 8,625 approved across January and February.
The JLL report says the number of apartments expected to be completed in 2025 in Sydney will be 13% lower than in 2024. The lack of supply and strong demand mean Sydney apartment prices rose 2.6% year on year, and rents are up 7.7%.
Melbourne apartment supply is extremely subdued, with just 2150 expected to be completed in 2025, which is half the annual average of the past ten years.
Median apartment prices in Melbourne dropped 0.3% in the past 12 months, although rents are up 8.9%.
Already, a similar number of apartments have been completed in Brisbane in the first quarter of 2025, 838, as were completed in the whole of 2024. Brisbane median apartment prices are up 20.2% year on year, while rents are up 9.1%.
Key Takeaways:
Confidence is clearly returning, with more listings and prestige sales
Land availability is a growing problem—pushing up prices despite reduced demand
Apartment markets are entering a classic undersupply phase—particularly in Brisbane and Sydney
Building activity is strongest where policy is pro-development—South Australia is the standout
Now more than ever, having a tailored plan is key.
Ready to make 2025 the year you realise your potential as an investor?
🎯 Book your complimentary discovery call with our expert team using the link below. Gain confidence, get clarity, and secure your own plan for success.
Tom Haigh
Director & Licensed Buyers Agent
Groundswell Property - a decade of trusted advice
tom@groundswellproperty.net
0439754475