In 2019, the average price of residential dwellings in Australia was approximately 660,800 AUD. By February 2025, this figure had risen to around 815,912 AUD, reflecting a 23.4% increase over six years.
In Sydney, the average price of homes saw even stronger growth. In 2019, the median house price in Sydney was approximately 840,000 AUD. By March 2025, this figure had risen to 1,186,459 AUD, a 41% increase over the same period. However, it’s important to note that property prices can vary significantly across different suburbs, and these figures represent overall medians.
At first glance, these increases suggest solid growth, aligning with broader housing market trends. However, evaluating property values in terms of gold presents a different perspective.
In 2019, with gold averaging approximately 2,008 AUD per ounce, the average Australian home was equivalent to about 329 ounces of gold. By March 2025, with gold priced around 4,769 AUD per ounce, the same house is now worth only 171 ounces of gold.
For Sydney, in 2019, with gold priced at 2,008 AUD per ounce, the median house price was equivalent to about 419 ounces of gold. By March 2025, with gold priced at 4,769 AUD per ounce, the same house would now be worth 249 ounces of gold.
This reflects a 48% depreciation in terms of gold for the average Australian home and a 40.5% depreciation in Sydney over the six-year period, highlighting a decline in the real value of housing when measured against a stable store of wealth like gold.
This comparison underscores the eroding purchasing power of fiat currency over time, a perspective that many overlook, which could lead to unexpected financial outcomes as economic cycles evolve.
