With headlines constantly reporting rising house prices and affordability challenges, many Australians are asking:
“Is $1 million still enough to buy a home?”
According to Cotality’s latest report, $1 million still goes some distance in the current housing market—but much less than it did just a few years ago.
What $1 Million Gets You in 2025
Here’s a snapshot of what your $1 million budget could buy in different parts of Australia:
| Location | What You Can Buy with $1M |
| Sydney (metro) | 2-bed apartment or townhouse in middle/outer suburbs |
| Melbourne | Small 3-bed home in middle-ring suburbs |
| Brisbane | 3–4 bed family home in good suburb |
| Adelaide & Perth | Large house with land, close to CBD |
| Regional NSW/VIC/QLD | Acreage or larger family homes |
In Sydney and Melbourne, property values have surged over 30% since 2019, pushing entry-level houses in many suburbs well over the $1M threshold. In contrast, buyers get far more value in cities like Adelaide and Perth, or regional hubs where growth is steadier but homes are still affordable.
Why $1 Million Isn’t a One-Size-Fits-All Budget
It’s not just about price—it’s about purpose.
Here’s what buyers should consider:
- First home buyers: May need to compromise on location, or consider buying a unit or townhouse first.
- Upgraders: Might need to shift to fringe suburbs or explore regional alternatives.
- Investors: Look at high-yield suburbs in outer metro or regional areas with growth potential.
Financing Still Matters More Than Ever
With rates hovering around 5–6%, servicing a $1M loan is harder now than it was during the low-interest era. Working with a broker can help you:
- Strategise your borrowing power
- Compare lenders beyond the big banks
- Consider loan structures that match your goals
Final Thoughts
Yes, you can still buy with a $1 million budget in Australia—but location, timing, and loan strategy are everything.
Looking to explore your options?
Book a free call with Loan Lounge or try our tools at loanlounge.au to see how far your budget can really go.