Buying a House: How far can $1M go in each state in 2025?

The reality is that current house prices in Australia are higher than ever. According to the April 2025 PopTrack Home Price Index report, median home values increased another 0.2%, reaching record highs. A million dollars, although a substantial spend anywhere else, may not get you very far in today’s housing market. 

The million-dollar threshold is quickly becoming the standard in many capital cities. Although there are still areas where a million-dollar budget can get you more. As always with real estate, it all depends on the location 

So, let’s take a closer look at exactly where $1 million can take you in each state in 2025. 

Australian property prices per state in 2025 

First, let’s get the basics down. The latest real estate price data from Cotality (formerly CoreLogic) shows that the median house price in Australia’s capital cities is $1,025,742, while in regional areas it’s only $693,693. The significant difference in prices shows how much location, population density, and housing stock affect house prices. 

Overall, the median house price in Australia as of May 2025 is $898,604. Prices vary significantly depending on the suburb, as well. 

Median unit prices, including apartments and townhouses, across Australia are far lower in comparison, sitting at $681,155. The median unit price for capital cities is $697,233, and for regional areas it’s $597,893. 

At a glance, it seems $1 million won’t take you very far in most Australian states and cities. Units, apartments, and townhouses remain the more affordable options for buyers across the board as they are consistently and significantly cheaper than buying a house. 

How many houses are over $1M in each state? 

According to the latest Cotality research, homes valued at over $1 million across Australia make up more than a third of the housing supply (34.4%). The portions of dwellings valued at $1 million or more by region are as follows: 

• Sydney - 64.4% 
• Melbourne - 30.9% 
• Brisbane - 40.2% 
• Adelaide - 27.9% 
• Perth - 26.3% 
• Hobart - 11.9% 
• Darwin - 1.3% 

When dividing by capitals and regions, the combined capitals have 41.6% of houses valued over $1 million, while the combined regions only have 19.4%.  

So, what do all these percentages mean? It shows us the housing options available in each region. You’ll be hard pressed to find a house that’s under $1 million in areas like Sydney or other capital cities, where dwellings valued at $1 million make up almost (or in Sydney’s case over) half of the housing market. 

What can you buy with $1M in Australia? 

Depending on where and what kind of property you’re buying, $1 million can still go a long way. In capital cities, you’ll find more expensive homes or units. These properties will likely have fewer amenities and features compared to properties in the same price range in regional areas.  

A $1 million home in Sydney, for instance, will have fewer features compared to similarly priced homes in Darwin. In Sydney, a property valued at $1.3 million or less will be fitted with three bedrooms or fewer, with very few amenities, and those in the $2 million and above price range have five bedrooms or more. A stark contrast to $1 million homes in Darwin with five bedrooms, a pool, and sitting on large pieces of land. 

If you’re looking for a home in Perth, Adelaide, or Hobart, there’s a good chance you can find a three-bedroom or more home for around $1 million. In these areas, you could get a luxury home for the same price as a standard single-family home in more expensive cities. Or you could buy more than one unit for the same cost in Canberra, Darwin, or Hobart. 

Alternatively, places like Sydney and Adelaide, where median house prices are well over the million-dollar mark, that $1 million budget is just par for the course. At this price point, it might get you a small two-bedroom farther from the CBD or a newer one to two-bedroom unit. 

Housing prices in the city are high, especially in Sydney 

If you’re buying a house in a capital city, you’re likely going to need a little more than $1 million. Keep in mind that house prices vary depending on the suburb and type of home. 

Houses in the more popular metropolitan areas will be even more expensive due to the high demand, shortage of housing options, growing local economy, and a multitude of other factors. This rings true for Sydney most of all, seeing as it has the highest median house price across Australia by a significant margin.  

A million-dollar budget in Sydney or Adelaide may not get you very far if you’re looking for a home. Of course, there are homes in the area worth less than $1 million, but they could be very few or not fit your housing criteria. Your $1 million may go farther with an apartment or a townhouse.  

Choosing units or regional areas as the more affordable option 

For those with tight budgets, it may be worth considering housing options like units, townhouses, or apartments. If you’re set on living in one of the capital cities or major metropolitan areas where property prices are on the higher side, choosing a unit instead of a house can put less strain on your finances. 

Darwin has the least expensive median house price across Australia by a significant margin. It also has the least number of dwellings valued at $1 million. You’re likely to find more affordable options in the area compared to Sydney or other capital cities. 

How can you finance a home purchase in Australia? 

Rising mortgage sizes reflect the increasing house prices. The most common way to finance a home purchase is through a home loan or mortgage. As home prices continue to grow, the need for home loans with competitive rates and useful features grows as well among home buyers. With a good home loan, you can save on interest and manage your repayments with ease. 

Whether it’s a first home, forever home or an investment property, loans.com.au can help you finance your property purchase. Get in touch with our friendly lending specialists by calling 13 10 90 or apply online to get started! 

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