Average Entry-Level House Pricing Per State 

In Australia, property prices have risen dramatically over the past few years, making it difficult for first-time home buyers to get their foot in the door of the property market. Plus, with rising interest rates, the average amount potential home buyers can borrow has been cut by up to 30% in some cases.

Despite these challenges, purchasing a home as a first-time buyer is still possible. To give you an idea of price range and options, we’ve pulled together an overview of the median and entry-level housing prices around the country. But before we get stuck in, it’s worth taking a bit of time to understand what these phrases mean.

What is the median house price?

If you’ve been looking at property, chances are you’ve heard the term ‘median house price’ thrown around. But what does it actually mean? Essentially, the median house price is the sales price of the middle house if all properties were ranked from highest sale price to lowest sale price. 

Unlike the median house price, the mean or average is calculated by adding up all the sales prices and dividing that figure by the number of homes that were sold. While it might seem like it would make more sense to use the average price, this figure can be easily skewed by unusually low or high sales prices, so it doesn’t necessarily provide the best snapshot of the property market. Therefore, median house prices are often used to provide a better indication of the current sales prices.  

While median figures provide an indication of the midpoint of the market, entry-level homes represent the 20th percentile or the bottom fifth of property values, which is often more achievable for first-home buyers. 

In saying that, it’s important not to pin all your hopes and dreams on these figures. Instead, it’s worth incorporating a range of tools and sources into your research to get a feel for where the property market is at, when you’re ready to buy. From visiting home opens to checking out comparable sales, the more research you do, the better your understanding of the property market will be.

For the purpose of this article, the median house price figures across both capital cities and regional areas have been pulled from the CoreLogic Home Value Index from the 1st of March 2024. The figures for entry-level properties have been sourced from a Domain news article based on the Domain First Home Buyer Report, Feb 2024. Keep in mind that house prices are constantly changing, so it’s a good idea to refer to CoreLogic, Domain and other sources for the most up-to-date sales information. In the meantime, here’s a quick snapshot of house prices across the country.

New South Wales

Median house prices in Sydney are currently around the $1,128,155 mark. Unsurprisingly, Sydney continues to lead the pack, beating all other capital cities in terms of the median house price. As of December 2023, you could score an entry-level property for around $927,250.

Similarly, regional NSW is also tracking ahead of the rest of the country with the median house price sitting at $719,032.

Victoria

Median house prices in Melbourne are $778,941 compared to $568,772 across regional Victoria.

First-home buyers were looking at spending roughly ​​$678,000 for an entry-level home in Melbourne in December 2023.

Queensland

Things are looking pretty bright in the Sunshine State. The median dwelling value in Brisbane is $805,593, allowing Brisbane to recently overtake Melbourne to become the third-highest median dwelling value among the capital cities. First-home buyers looking to enter the market in Brisbane may still be able to score a property in the state’s capital for roughly $635,000 based on Domain’s figures.

If you head out of the city, you can expect to pay around $616,576 based on the median house prices in regional Queensland. 

The Australian Capital Territory

At $840,103, Canberra has the second-highest median dwelling value behind Sydney. Entry-level homes aren’t far off the median value, sitting at $800,000 as of December 2023.

South Australia

Adelaide continues to perform well with a median house price of around $727,142 and $399,339 for regional SA.

But just because the median house price in Adelaide is over $700k, that doesn’t mean you can’t still snag yourself a bargain. According to Domain, you could get yourself an entry-level home for roughly $595,000 in December last year.

Western Australia

Perth's median house price is $687,004. As you move out into regional WA, the median house price is roughly $479,540. First-home buyers in Perth may still be able to get themselves a deal, with entry-level homes coming in around the $505,000 mark in December 2023.

Tasmania

In Tasmania, there’s not a lot of difference between the median in Hobart compared to regional Tasmania. In Hobart, the median house price is $652,645, compared to $503,051 in regional Tasmania. When it comes to entry-level properties, you could get your foot in the door of the Hobart property market for roughly $530,000 based on Domain’s findings.

Northern Territory

As the most affordable capital city, the median house price in Darwin is $499,834. With this level of affordability, entry-level properties aren’t far behind the median house price, sitting at $460,750 in December 2023.

Based on the figures, it’s clear that regional property prices are often more affordable compared to the prices seen in capital cities. It could be a good option to get out of the city in lieu of more affordable, entry-level properties. 

However, just because the median property value is a little out of your price range doesn’t mean you won’t be able to afford a property in the city. The median price is just an indicator of the mid-range sales prices, meaning there are still plenty of entry-level properties that could be within your budget. Alternatively, you may need to make a few compromises to get your foot in the door. For example, if inner-city living is what you’re after, Domain chief of research and economics,  Dr Nicola Powell suggests you might be better off opting for a unit or townhouse over a free-standing home to get close to the city while staying under budget.

Saving for your first home can be hard, but it’s helpful to know you’re not the only one going through this process. Find out more here about how other young Australians are approaching their home-buying journey. 

If you’re just starting out on your home-buying journey, Unloan is here to help. Use our borrowing power calculator to help you figure out how much you can afford to borrow. But that’s not all, you can request a free property report complete with property details, estimated value and property market insights. Or for more information on buying a home, check out our collection of blogs, videos and more.

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This article does not have regard for the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on this, consider the appropriateness to your circumstances.   

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