In comparing the capital growth rate of ASX 200 shares vs. property in 2025, bricks and mortar won out.
S&P/ASX 200 Index (ASX: XJO) shares rose 6.8% and gave a total return, including dividends, of 10.32%.
Meanwhile, the national median home value, which reflects all property types in a single data point, rose by 8.6%.
The total return, including rental income, was 12.4% over the 12 months, according to data from Cotality.
Drilling down into property types, the national median house price rose 9.3% to $980,343 the apartment price lifted 6% to $728,184.
Investment property market in 2025
Cotality Australia Head of Research, Eliza Owen, said the property market had an unexpectedly strong year.
Owen commented:
Markets entered 2025 under considerable pressure.
Affordability had hit a series high, serviceability was stretched and price growth had flattened out.
What followed was an unexpectedly strong rebound as interest rate cuts, easing inflation and limited supply reignited competition.
The expansion of the 5% Home Guarantee Scheme from 1 October and persistently low listing volumes also helped drive prices higher.
The expanded scheme is now accessible to an unlimited number of first home buyers, regardless of their income.
Property price caps were raised as part of the expansion.
In Sydney and the prime regional NSW hubs of The Illawarra, Newcastle, and Lake Macquarie, the price cap is $1.5 million.
Owen said there were three consecutive months of at least 1% growth in the national median value, from September to November.
The Australian property market is now worth $12 trillion compared to ASX shares at $3.6 trillion and superannuation at $4.5 trillion.
Lower value property markets saw the best growth because they were more affordable.
Let’s look at the specific growth numbers for metro and regional areas last year.
Shares vs. property in 2025: Houses
Here is the capital growth rate for houses in each market, ranked from highest to lowest.
| Property market | Capital growth of houses in 2025 |
| Darwin | 19.9% |
| Regional Western Australia | 16.5% |
| Perth | 15.7% |
| Brisbane | 14% |
| Regional Queensland | 12.8% |
| Regional South Australia | 10.9% |
| National | 9.3% |
| Adelaide | 8.7% |
| Regional NSW | 7.6% |
| Regional Tasmania | 7.1% |
| Sydney | 6.9% |
| Hobart | 6.8% |
| Canberra | 6.4% |
| Regional Victoria | 6.1% |
| Melbourne | 5.8% |
| Regional Northern Territory | 1.7% |
Source: Cotality
Shares vs. property in 2025: Apartments
Here is the capital growth rate for apartments (and other strata properties), ranked from highest to lowest.
| Property market | Capital growth of apartments in 2025 |
| Perth | 17.5% |
| Darwin | 17% |
| Brisbane | 16.9% |
| Regional South Australia | 14.3% |
| Regional Queensland | 12.1% |
| Regional Western Australia | 9.5% |
| Adelaide | 9.5% |
| Hobart | 6.9% |
| Regional NSW | 6% |
| National | 6% |
| Regional Victoria | 5.8% |
| Sydney | 2.9% |
| Regional Tasmania | 2.8% |
| Melbourne | 2.5% |
| Canberra | 0% |
| Regional Northern Territory | N/A |
Source: Cotality
5 best-performing ASX 200 shares of 2025
Let’s compare shares vs. property in more detail by looking at the capital growth of the five best-performing ASX 200 shares of 2025.
| ASX 200 shares | Capital growth in 2025 |
| DroneShield Ltd (ASX: DRO) | 300% |
| Pantoro Gold Ltd (ASX: PNR) | 220% |
| Resolute Mining Ltd (ASX: RSG) | 206% |
| Liontown Resources Ltd (ASX: LTR) | 197% |
| Regis Resources Ltd (ASX: RRL) | 196% |
The post Shares vs. property: Which delivered the best capital growth in 2025? appeared first on The Motley Fool Australia.
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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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