At TMAP, we’re all about helping buyers make informed decisions, not just about where to buy, but when and how. Analysing the price paid per square metre ($/sqm) is one way of better understanding the true value of properties. Here’s how you can use this data to your advantage—and why location truly matters when it comes to property investment.

Why $/sqm Matters More Than Ever

While overall house prices often make the headlines, $/sqm goes deeper, giving a clearer picture of how much buyers are paying for the land itself. For example, Sydney remains Australia’s most expensive market, with a median $/sqm of $2,450—an increase of 64% in just five years. Meanwhile, Melbourne’s smaller lot sizes keep its $/sqm second highest nationwide, despite softer overall price growth.

Capital City Highlights: Which Offers the Best Value?

Sydney:
Sydney leads the pack with over 30 of the most expensive suburbs in Australia. Paddington, a prime location near the city centre, stands out with a staggering $28,000 per sqm—a reflection of its smaller blocks and incredible demand for inner-city lifestyle properties.

Melbourne:
Despite cooling price growth in recent years, Melbourne holds its ground as the second most expensive on a $/sqm basis, thanks to smaller block sizes and the high desirability of its inner-city suburbs like East Melbourne and Albert Park.

Darwin and Hobart:
For those looking for more bang for their buck, Darwin’s $/sqm is the cheapest, sitting 30% below Hobart’s $920. Both cities demonstrate excellent opportunities for buyers seeking affordability without sacrificing growth potential.

Why Location is Key for Smart Property Decisions

At TMAP, we believe paying attention to where you invest can be as important as how much you spend. We’ve written about The Property Triangle before – and location is one of the key factors in property buying decision making. For example, Brisbane and Adelaide have seen their $/sqm nearly double in five years, reflecting the growing demand for larger homes and blocks. This rise aligns with population growth and increased interest in family-friendly suburbs.

Meanwhile, lifestyle-rich, amenity-packed suburbs like Darlinghurst in Sydney or Middle Park in Melbourne command a higher $/sqm, but the overall property prices are often more accessible than ultra-luxury areas. This makes them attractive options for those looking to balance affordability with liveability.

What This Means for Buyers in 2024

The data tells us that while Sydney and Melbourne lead in $/sqm, suburbs within these cities vary wildly in value. For first-home buyers or budding investors, the goal is not just to find the cheapest block, but to find properties in locations with growth potential and high demand.

Affordable cities like Darwin and Hobart offer exceptional value, while regions outside major capitals can provide spacious properties without breaking the bank. The key takeaway? Smart investments focus on both current value and future growth potential.

TMAP’s Advice for Property Seekers

If you’re considering buying in 2025, focus on the following:

  • Compare $/sqm in potential suburbs to gauge land value accurately.
  • Explore emerging areas where price growth is on the rise, like Brisbane and Adelaide.
  • Think long-term: Invest in suburbs that balance lifestyle, affordability, and growth.

And, of course, choose the right team.