Gold Bricks: What 20 Years of Growth Tell Us
Over the past two decades, Victoria’s housing market has seen remarkable growth, making property one of the most resilient long-term investments in the state. In 2005, the median house price in Melbourne sat at approximately $350,000. By 2015, that figure had climbed to around $649,000—an 85% increase in just 10 years.
Fast forward to 2025, and the median price now sits at approximately $922,500. That’s a further 42% growth over the last decade. Looking at the full 20-year period from 2005 to 2025, this represents a total increase of over 163% in median house prices.
To put this in perspective, let’s compare this to the price of gold. In 2005, gold was trading at around USD $450 per ounce. Today, it's valued at roughly USD $2,300 per ounce—an increase of over 400%.
So why compare housing to gold?
Gold is often viewed as a barometer of economic sentiment. It's a "safe haven" asset, meaning people turn to it in uncertain times. When gold prices rise, it’s often a sign of inflation fears, low confidence in currency strength, or global instability. As such, tracking the gold price helps us understand broader economic conditions, including how people approach investment.
While gold has outperformed housing in raw percentage terms, real estate offers its own unique advantages: it provides shelter, rental income, tax benefits, and leverage opportunities through lending. Property also carries a “utility” value—people live in it, not just invest in it.
While Victorian house prices have more than doubled since 2005, showing strong, steady growth, gold reflects global economic trends. Property remains a powerful wealth-building tool tied to population growth, infrastructure, and demand.