Price per square metre offers unique market insights

Analysing property values based on price per square metre (sqm) revealed a more nuanced picture of Australia’s housing market.

According to PropTrack senior economist Eleanor Creagh (pictured above), this measure isolates property value from land size, offering insights into trends across cities and suburbs.

While Sydney remains the most expensive capital city by both median house prices and price per sqm, other cities shift in rank.

Melbourne, for example, ranks as the second most expensive city on a price per sqm basis, despite dropping to fourth in terms of median house prices.

“Melbourne’s smaller residential lot sizes explain its high ranking, even with weaker home price growth compared to cities like Brisbane, Adelaide, and Perth,” Creagh said.

Sydney suburbs show contrasts in value

PropTrack data showed that Sydney commands a median price of $2,450 per sqm, a 64% increase over five years, and remains 53% more expensive than Melbourne in second place.

Despite its overall lead, Sydney’s price per square metre trends reveal interesting contrasts:

• Paddington leads Sydney with a staggering $28,000 per sqm, more than 10 times the city’s median.
• Bellevue Hill and Vaucluse, known for their high median house prices, rank significantly lower on a price-per-sqm basis due to larger lot sizes.

“This highlights the value buyers place on lifestyle-focused, amenity-rich suburbs like Paddington and Darlinghurst,” Creagh said.

Smaller blocks drive high values in Melbourne

Melbourne’s smaller lot sizes keep its price per square metre high at $1,600, even as Brisbane and Adelaide surge in overall median house price growth, PropTrack reported.

Brisbane and Adelaide have nearly doubled their price per square metre over five years due to rising demand for larger homes and blocks.

Darwin remains the most affordable capital city, with a price per square metre 30% lower than Hobart’s $920, the second-cheapest city.

Geography and amenities shape housing values

Factors like location, lifestyle amenities, and lot size continue to shape property values across Australia.

“The contrast between cities like Sydney and Darwin underscores the diversity of Australia’s housing market,” Creagh said.

With disparities between median house prices and price per square metre, understanding these trends is essential for brokers and buyers seeking value in a competitive property market.

Read the PropTrack insights in full here.

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