Nation records 1.6% population increase as demand-supply mismatch continues to support property prices
Australia’s population grew by 1.6% in the year ending September 2025, maintaining pressure on the housing market despite the growth rate declining 36% from post-pandemic highs.
According to the latest figures from the Australian Bureau of Statistics (ABS), the nation’s population reached 27.7 million, representing an addition of 423,600 residents compared with September 2024.
The increase comprised natural population growth and net overseas migration, the statistics office stated.
“It looks like population growth has found a new level, with the latest stats from ABS showing Australia's population increased by 423,595 residents over the year to September last year, which is 12% above the decade average but 36% down on the post-COVID high when the national population increased by nearly 662,000,” said Tim Lawless (pictured right), head of research at Cotality.
“The rate of growth, at 1.6%, is on par with the 20-year average (also 1.6%) and above the 30-year average at 1.4% growth, but still well above the 2025 Population Statement which outlines a 1.3% population growth rate by the 2025-26 financial year."
Births exceeded deaths by 112,600 people during the period. Birth numbers rose 1.9% while mortality figures declined 1.4%.
Net overseas migration contributed 311,000 people to the population over the 12-month period.
| Annual population change by state and territory | |||
|---|---|---|---|
| Population at 30 September 2025 ('000) | Change over previous year ('000) | Change over previous year (%) | |
| New South Wales | 8,624.5 | 105.6 | 1.2 |
| Victoria | 7,104.3 | 122.0 | 1.7 |
| Queensland | 5,692.6 | 97.3 | 1.7 |
| South Australia | 1,908.2 | 21.1 | 1.1 |
| Western Australia | 3,061.7 | 65.8 | 2.2 |
| Tasmania | 576.7 | 1.6 | 0.3 |
| Northern Territory | 265.5 | 3.7 | 1.4 |
| Australian Capital Territory | 486.2 | 6.5 | 1.3 |
| Australia (includes other territories) | 27,724.7 | 423.6 | 1.6 |
| Source: Australian Bureau of Statistics | |||
Western Australia recorded the highest growth rate among states, with population rising 2.2%. Victoria and Queensland each saw 1.7% growth.
Tasmania registered the slowest expansion, with population increasing just 0.3% over the year.
According to Lawless, the continuing population growth maintained demand pressures in the housing sector.
“For housing, there is still plenty of demand side pressure coming through, running up against ongoing supply side challenges,” he said. “While the housing headwinds are mounting – think affordability and serviceability challenges, cost of living pressures and higher interest rates – the ongoing demand-supply mismatch should help to keep a floor under housing prices.”
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