Australia’s property market is under intense scrutiny as skyrocketing prices leave many residents struggling to afford homes that pale in comparison to international offerings. With median house prices in cities like Melbourne reaching A$1,000,000 (~US$650,000) in early 2025, buyers often end up with outdated properties in less desirable areas.
Meanwhile, for significantly less, global markets offer luxurious estates and tropical villas, highlighting a stark disparity in value. Compounding the issue, a rapid influx of immigration—approximately 1.5 million people over the past two years—has intensified demand, pushing the housing crisis to a breaking point. This article explores the dramatic differences in property value, the exorbitant costs of luxury in Australia, and the socioeconomic strains fueled by population growth.
The Stark Contrast: Australian Properties vs. Global Bargains
For A$900,000, the typical Australian buyer in outer suburbs often secures a modest, aging home with little to no charm. In Tregear, New South Wales, this budget buys a three-bedroom fibro house on a small plot, often in need of extensive repairs and located in areas with social challenges. Contrast this with international markets, where far less money secures properties of remarkable quality. In Aquitaine, France, A$768,000 (~US$512,000) can purchase a restored 6-room château, complete with historic features and expansive private gardens. 
Similarly, in St Albans, Victoria, the same amount of money might afford a two-bedroom brick veneer property with minimal appeal, squeezed into a crowded, noisy suburb. However, along the Adriatic coast in Tivat, Montenegro, a modern four-bedroom villa with stunning views is available for A$556,000 (~US$371,000).
In Rocklea, Queensland, a flood-prone 3 bedroom fibro board home priced at A$825,000 poses additional risks, while in Mykonos, Greece, A$720,000 (~US$480,000) secures a blend of modern and traditional villa with a pool and sea views.
Elizabeth South, South Australia, buyers face uninspiring ex-housing trust homes for A$960,000, while in Koh Samui, Thailand, a hillside villa with an infinity pool costs just A$650,000 (~US$433,000).
Beachfront, in Denham, Western Australia will set you back $850,000 for a lacklustre 4 bedroom home, with two bathroom, both of which don’t appear to have ever received an upgrade. Whereas in Da Nang, Vietnam, a luxury villa with golf course on the beachfront, can be acquired for A$600,000 (~US$400,000), offering a lifestyle unimaginable for the same price in Australia.
Further examples underscore this disparity—Austins Ferry, Tasmania where a run-down, damp looking two story home will put you out of pocket $675,000 (~US$442,000). In comparison, Phuket, Thailand, you’ll fetch an attractive fully-furnished modern villa with sunset views for A$650,000 (~US$433,000).
A cramped 1980s townhouse in Charnwood, Australian Capital Territory, demands A$900,000, while in Puntarenas, Costa Rica, a tropical oasis surrounded by jungle mountains and Pacific ocean views, a secluded four-bedroom house with goes for A$800,000 (~US$523,000).
How about Parap, NT at a cosy A$550,000 (!US$360,000) vs an award-winning architect designed home in stunning Umbria, close to Rome, Florence and San Marino, amongst rolling hills and Italy’s very best vineyards!
These comparisons reveal a troubling reality for Australian homebuyers: their money stretches far less domestically than it does abroad.
The Price of Luxury: Importing Global Standards to Australia
Aspiring to match the grandeur of international properties within Australia comes at a staggering cost. To replicate the elegance of a French château, buyers in Melbourne’s affluent Toorak suburb might look at estates priced between A$15 million and A$16.5 million (~US$10-11 million). A comparable mansion in Hawthorn East could fetch up to A$19.5 million (~US$13 million). These prices are not just for the properties but for the prestige of the postcode, inflating costs far beyond the value offered overseas.
For those dreaming of a tropical villa akin to those in Koh Samui or Phuket, Sydney’s Bondi Beach or Melbourne’s Brighton offers similar modern homes with pools—but at A$3 million to A$5 million (~US$2-3.3 million). In Victoria’s Mornington Peninsula, a Balinese-inspired retreat starts at A$4 million (~US$2.7 million), nearly six times the cost of a comparable property in Thailand. Beachfront luxury mirroring Da Nang’s offerings requires budgets of A$3.5 million (~US$2.3 million) in areas like Noosa or Byron Bay. Even rustic charm, as seen in Mykonos, translates to A$2 million to A$4 million (~US$1.3-2.7 million) for properties in Victoria’s Yarra Valley.
Eco-conscious villas similar to those in Costa Rica’s Puntarenas or Playa Hermosa are available in Margaret River or Port Douglas, but starting at A$2.5 million (~US$1.7 million). These figures—often two to ten times higher than their international counterparts—illustrate a market that heavily penalizes Australian buyers for seeking the kind of luxury that is standard elsewhere. For the average worker, such homes remain an unattainable fantasy, exacerbating frustration with the domestic property landscape.
Immigration Surge: Adding Fuel to the Housing Fire
So what’s this all about? Australia’s immigration policies have significantly contributed to the housing crisis, with around 1.5 million new arrivals over the past two years, equating to roughly 62,500 people per month. Many of these migrants, often from countries such as India, Nepal, Pakistan, and the Philippines, are entering low-skilled sectors, placing immediate pressure on urban housing markets in cities like Melbourne and Sydney. This rapid population growth drives up demand in an already constrained market, where median prices in areas like Mulgrave, Victoria, have soared to A$1.2 million (~US$800,000). But these low skilled workers can’t afford that, they’re renting a small home or condo with 6-10 people in a 3 bedroom dwelling—this is the reality of Australia’s housing policy, for Australia’s latest migrants.
The influx has tangible effects on housing affordability. Reports suggest that a 1% increase in population due to immigration can lead to a near-equivalent rise in house prices, creating a vicious cycle for locals competing for limited stock. Public housing waitlists stretch into years, while private rentals are quickly occupied by families desperate for shelter. The strain on welfare systems is also notable, as resources are stretched thin to accommodate new arrivals, many of whom rely on benefits while contributing less economically compared to skilled migrants.
This demographic shift raises critical questions about sustainability. With infrastructure in major cities buckling under the weight of rapid growth, and living standards reportedly declining—evidenced by falling GDP per capita over the past two years—many Australians are left wondering how they will weather future economic challenges. The housing market, already a source of inequality, becomes a flashpoint for broader societal tensions as locals grapple with diminished access to what was once considered the Australian dream of homeownership.
Emerging Trends and Unanswered Questions
The housing crisis is not just about prices; it reflects deeper systemic issues. Homeownership among Australians under 35 has plummeted to 39%, down from 60% two decades ago, effectively locking out an entire generation from property ownership. Urban congestion worsens as cities struggle to accommodate growing populations, while wage stagnation in low-skill sectors like hospitality and retail further erodes purchasing power. Public sentiment is increasingly fraught, with rapid demographic changes fueling a sense of alienation among some residents.
Several pressing questions emerge from these trends. Why must Australians toil for decades to afford substandard homes when comparable budgets unlock luxury abroad? If housing remains this unaffordable, could social cohesion be at risk? As younger generations and skilled professionals are lured by more accessible opportunities overseas, what does this mean for Australia’s future talent pool and economic vitality? And with policy responses appearing inadequate, how long can the current trajectory persist before public frustration boils over into significant unrest?
The property market in Australia stands as a glaring symbol of inequality, where locals are priced out of decent homes while international alternatives beckon with affordability and allure. Compounded by immigration-driven demand, the crisis challenges the very notion of Australia as the ‘lucky country.’ As pressures mount, the path forward remains uncertain, with potential implications for both economic stability and social harmony.
