New research from Savills reveals Australia’s rising position in the global real estate landscape. Here’s what that means for our residential sector.

Australia’s residential market in focus

Despite ongoing headlines about affordability pressures and a volatile construction sector, Australia’s residential market continues to rise in value on the global stage.

According to new insights from the Savills global research team, Australia now ranks 8th in the world by total residential real estate value, up from 11th in 2019. This climb isn’t just a numbers game, but reflects the resilience, broad appeal, and long-term strength of Australian housing, particularly in our east coast cities.

What’s driving the rise?

The lift in Australia’s total residential value has been driven by a combination of rising home prices and steady additions to housing supply, even in the face of higher interest rates and tighter lending conditions.

While several global markets saw a dip in value in US dollar terms in 2024, Australia’s residential sector held firm or even grew in local currency - a sign of the market’s durability and the ongoing demand from both local and offshore buyers.

Geographically, Sydney continues to lead the way, buoyed by limited supply, strong lifestyle credentials and demand from across the spectrum.

The global backdrop

At the end of 2024, the total value of the world’s residential property stood at US$286.9 trillion, down 2.7% from the previous year. The drop was largely driven by China, still the world’s largest housing market, where falling prices and a slowdown in construction took a toll. Added to this was the impact of currency shifts, particularly the strength of the US dollar, which caused global values to dip.

In this context, Australia stood out for not only maintaining value but climbing the global rankings, underscoring its reputation as a safe, stable destination for residential investment.

What it means for Australia’s East Coast

Sydney plays a central role in Australia’s global housing value, ranking among the world’s highest-value residential markets per dwelling. Melbourne and Brisbane too, are key contributors, supported by growing populations, continued migration, and major infrastructure projects.

Michael Lang, State Director, Residential Projects in Victoria says Melbourne remains an essential part of the national picture, despite a current softer position:

“While the Melbourne market remains at a relatively low point in its cycle, we’re beginning to see early indicators of stability in key segments. The core drivers are still there - population growth, lifestyle, and infrastructure investment - and those will support long-term recovery. Because of this, investors are watching closely.”

Resilience now = opportunity ahead

Even with ongoing challenges, from planning delays and tight credit conditions to pressure on the construction sector, Australia’s housing market continues to be recognised, valued and sought after on the world stage.

This isn’t just about data points, it’s a signal that our cities continue to attract capital, attention and long-term confidence. To keep that momentum going though, there’s a shared responsibility across governments, developers, and industry to plan ahead, protecting affordability, enabling supply, and delivering the type of housing future Australians need.

Disclaimers:

The postings by any individual on any blog do not necessarily represent the position of Savills, its strategies or opinions.