Australia’s property market has reached a major milestone, and it’s both exciting and challenging news for buyers. Soaring demand, limited supply, and steady price growth have pushed home values to record highs across the country. As a result, more suburbs than ever are now part of the “$1 million club,” changing what people see as affordable in many areas.
Property prices have surged so much that one in three Australian suburbs now has a median home value above $1 million. This “$1M club” has grown 143% over the past five years, reflecting a 46.8% jump in prices since 2020.
Regional breakdown
Major cities are leading the way:
- Brisbane: +37 new $1M suburbs this year (205 total).
- Sydney: 70% of suburbs ≥ $1M (median $1.24M) with 36 more reaching that mark.
- Perth: +19 new $1M suburbs (129 total).
- Adelaide: 42% of house suburbs (116 of 276) now ≥ $1M.
- Melbourne: +7 new $1M markets (207 total).
In fact, over 80 more suburbs are on track to join the million-dollar list by year-end.
Affordability pressures
These shifts mean affordability is tightening. As industry experts warn, climbing prices and tight supply are making home ownership “increasingly out of reach for first-time buyers”. Even with government support, many buyers feel the squeeze. For example, as of October 2025 the expanded Home Guarantee Scheme lets first-home buyers enter with just a 5% deposit in far more areas. The price caps jumped too – Sydney’s cap rose from $900K to $1.5M, Brisbane’s from $700K to $1.0Mbesmartfinance.com.au, meaning many more homes now qualify under the scheme.
Analysts note that ongoing price gains and scheme-driven demand could push even more suburbs past seven figures. In practical terms, this means setting a clear budget and loan plan.
Advice for buyers and investors
- Check your borrowing power: We’ll run the numbers so you know exactly how much you can borrow. Using the 5% deposit Home Guarantee Scheme can increase your loan size and save thousands on LMI – as long as you stay under the cap.
- Refinance to access equity: If you own a home, you likely have more equity now. We can review your options to refinance at a better rate or take cash out for renovations or investment.
- Choose the right loan features: In high-value markets, an offset account or interest-only payments can reduce your short-term costs. We’ll tailor your loan structure (fixed vs variable, repayment strategy, etc.) to fit your budget.
- Get pre-approved: In a hot market, being pre-approved by a broker lets you act fast. We’ll help you get approved so you can confidently bid when the right property comes along.
Ready to get started? At Be Smart Finance we guide both first-home buyers and investors through these changes. We’ll calculate your new borrowing power, compare suitable home loan options, and ensure you meet the Home Guarantee Scheme criteria. Speak with our expert brokers today to see how the expanded Home Guarantee Scheme and current rates can help you buy smarter. Call us on 0408 659 819 or book a free 30-minute consultation.
