A Decade of Transformation: Insights into Australia’s Property Market (2010-2019)
Australia’s property market between 2010 and 2019 underwent transformative growth driven by population increases, a shift toward higher-density housing, regional price variations, and technological advancements, supported by economic resilience and low interest rates.
The Australian property market experienced significant transformations between 2010 and 2019, marked by notable shifts in housing supply, population growth, and economic factors.
Throughout the decade, Australia’s population grew substantially, with cities like Mandurah, Maitland, Gold Coast, Geelong, Canberra, Ballarat, Bendigo, and Darwin outpacing Sydney’s 18.2% growth rate. This surge in population intensified demand for housing, particularly in urban centers.
The number of residential dwellings in Australia rose from 8.8 million to 10.4 million during this period. A significant trend was the move towards higher-density living; 43.7% of all residential dwellings approved were attached dwellings such as apartments and townhouses, up from 31% in the previous decade. Notably, five out of eight capital cities approved more apartments than houses: Canberra (70.9%), Sydney (65.9%), Melbourne (52%), Darwin (51%), and Brisbane (50%).
Housing Supply and Increased Density
Between 2010 and 2019, Australia’s housing landscape evolved significantly, with the total number of residential dwellings increasing from 8.8 million to 10.4 million. This expansion reflected the nation’s growing population and rising demand for housing. However, the type of housing being built marked a clear shift towards higher-density living. Compared to 31% in the previous decade, 43.7% of all new residential approvals during the 2010s were for attached dwellings such as apartments and townhouses. This trend underscored a growing preference for urban living and a need to maximise land use in densely populated areas.
Capital cities spearheaded this move toward higher-density housing. In Canberra, nearly three-quarters (70.9%) of residential approvals were for apartments and townhouses, while Sydney followed closely at 65.9%. Melbourne, Darwin, and Brisbane all approved more apartments than standalone houses, highlighting a nationwide embrace of vertical development to accommodate urban growth. This shift was driven by several factors, including affordability challenges, urbanisation trends, and government policies encouraging infill development and efficient land use.
Economic Factors and Property Market Performance
The 2010s were bookended by one major global crisis: the aftermath of the Global Financial Crisis (GFC). Yet, Australia’s economy demonstrated remarkable resilience throughout the decade. Consistent GDP growth in the mid-two-percent range reflected a stable macroeconomic environment, while low interest rates fostered favorable borrowing conditions, stimulating housing demand.
Government interventions, such as incentives for first-home buyers and investments in infrastructure, also played a crucial role in propping up the property market. Despite global economic uncertainty, Australia’s housing market benefited from sustained population growth, stable employment levels, and a robust financial system. This stability positioned the property market as a preferred investment vehicle for both domestic and international buyers, contributing to consistent price growth in many regions.
Regional Variations in Property Prices
While Australia’s property market as a whole expanded, the decade saw notable regional disparities in price movements. Sydney, the nation’s largest housing market, experienced an extraordinary rise in median house prices, jumping from $530,000 to $972,000—an 83% increase. This surge reflected strong demand, limited supply, and significant investment from both local and overseas buyers.
By contrast, Perth’s housing market struggled, with its median house price declining slightly from $494,000 to $489,000. This stagnation was largely attributed to the waning of the mining boom, which had previously driven economic and population growth in Western Australia.
Regional areas also saw diverse outcomes. Goulburn, for example, recorded substantial growth, with median house prices rising from $230,000 to $427,000, as more buyers sought affordable alternatives to Sydney’s soaring prices. Bendigo, while experiencing growth from $235,000 to $360,000, remained relatively stable compared to other regions, reflecting its steadier demand and supply dynamics.
Technological Advancements and Real Estate
The rapid technological advancements of the 2010s reshaped the real estate sector in profound ways. The proliferation of smartphones and digital platforms transformed how properties were marketed and purchased. Online property listings became the norm, offering buyers and renters a convenient way to browse properties from anywhere. Platforms like Domain and realestate.com.au revolutionised the industry, enabling users to filter searches by location, price, and amenities with unprecedented ease.
Virtual tours emerged as a game-changer, allowing potential buyers to view properties remotely. These innovations reduced geographical barriers and increased transparency, making it easier for investors and homebuyers to make informed decisions. Additionally, data analytics became a vital tool for real estate professionals, enabling agents and developers to better understand market trends, predict buyer behavior, and tailor their strategies.
The rise of proptech (property technology) also introduced efficiencies across the sector, from automated valuation models to blockchain-based platforms streamlining transactions. These advancements not only improved the customer experience but also enhanced operational efficiency, setting a new standard for how real estate business is conducted.
The decade from 2010 to 2019 marked a period of transformation for Australia’s property market, driven by increased housing supply, economic resilience, regional price disparities, and the impact of technological innovation. These changes have reshaped the real estate landscape, highlighting the interplay between population growth, urbanisation, and digital disruption in shaping the future of housing and investment.
