Million-Dollar Homes on the Rise: How to Navigate Australia’s 2025 Housing Market

Amir Nikibin
Jun 7
2 min read

Australia’s housing market is reaching new heights, with over a third of homes (34.4%) now valued at $1 million or more, according to CoreLogic’s latest research (April 2025). This shift, driven by a 67.3% value increase over the past decade, is reshaping homeownership and investment opportunities. At Nik Finance, we’re here to guide you through this evolving market with expert home loan refinance, owner-occupied home loans, and investment property loans. Here’s how to prepare for 2025.

The Rise of Million-Dollar Homes

CoreLogic reports that 41.6% of homes in Australia’s capital cities are now valued at $1 million or higher, up from 14.3% a decade ago. Key trends include:

Sydney Leads: 64.4% of homes exceed $1 million, with median values at $1,195,000. Even three-bedroom houses now have a median of $1.3 million.
Brisbane’s Surge: 40.2% of homes are million-dollar properties, up from 6.2% five years ago, with median house values nearing $1 million ($990,000).
Other Cities: Adelaide (27.8%) and Perth (25.1%) have seen sharp rises since 2020, while Melbourne’s share is 30.9%, and Hobart’s has dropped to 11.9%.

These trends reflect strong market growth but also highlight affordability challenges for first-home buyers and investors.

Refinancing in a High-Value Market

With home values rising and potential rate cuts expected in 2025, home loan refinance can help you manage costs or unlock equity. Benefits of refinancing mortgage in Australia include:

Lowering monthly repayments with better rates.
Accessing home equity for renovations or investments.
Consolidating debt to improve financial stability.

Nik Finance’s brokers can help you find tailored refinance solutions, especially in high-value markets like Sydney and Brisbane.

Strategies for First-Home Buyers and Investors

The million-dollar market poses challenges, with homeownership rates declining and housing debt rising (135% of income, per RBA). Consider these options:

Owner-Occupied Home Loans: Owner-occupied home loans for more affordable properties in cities like Melbourne or regional areas.
Investment Property Loans: Investment property loans to build wealth in fast-growing markets like Brisbane, where values are nearing $1 million.

First-home buyers may also explore smaller properties or ‘rentvesting’ to enter the market.

Beyond Property: Affordable Car Financing

Navigating a high-value market requires financial flexibility. Nik Finance offers low-interest car loans starting at 4.49% p.a., making vehicle financing accessible and stress-free.

Plan for 2025 with Nik Finance

As Australia’s housing market trends toward million-dollar homes, strategic financing is key. Nik Finance provides personalised solutions, and eligible clients can explore a $4,000 cashback offer on select loans. Learn how to make the most of 2025’s market opportunities.