Australia’s housing market sits at a very sturdy and impressive $11.366 trillion. That’s $1,002,500 per dwelling and 4.14 times our entire economy’s size. Compare that to the US at just 1.6 times, and you’ll see we’re in uncharted territory. The scale of this disparity becomes even more striking when considering that Australian median household income hasn’t kept pace with property values, creating an unprecedented affordability gap that traditional financing mechanisms struggle to bridge. While investors track everything from btc to aud conversions in search of alternative assets, there’s a quieter conversation happening about blockchain tokenisation in property.
We’re not talking about replacing bricks and mortar with digital dreams. We’re examining whether fractional ownership through tokenisation could genuinely shift market dynamics in a country where housing costs have tripled in real terms over the past 30 years.
You may be surprised by the answer—a riff here and there, not massive disruption, just pressure building and solutions becoming relevant.
Breaking the million dollar limitation
Property tokenisation is the process of breaking real estate into digital tokens that represent fractional ownership rights in a property. It is simple in theory with large implications.
A million-dollar property equals 1,000 tokens, each worth $1,000. Suddenly, average investors can own a slice of prime real estate without needing a deposit that’s larger than most people’s annual salary. This fractional approach mirrors successful models in other asset classes—from REITs to crowdfunding platforms—but with the added benefits of blockchain transparency and programmable ownership rights. The technology enables investors to diversify across multiple properties with smaller capital commitments, potentially reducing concentration risk that plagues traditional property investment.
Deloitte projects that tokenised real estate will grow from under $300 billion in 2024 to $4 trillion by 2035. That’s a 27% annual growth rate, suggesting genuine institutional confidence, not speculative fever.
According to Binance, “DeFi shifted toward institutional adoption and real-world asset RWA integration. While TVL held steady at 151.5B, user activity spiked 240% YoY”. This data shows real-world asset tokenisation gaining serious traction beyond cryptocurrency circles.
University of Western Australia research confirms tokenisation could help young Australians enter the housing market through fractional ownership. When our per capita housing value sits at $396,400—triple what it was three decades ago—alternative entry points matter.
The practical benefits stack up: enhanced liquidity for traditionally illiquid assets, reduced transaction costs through smart contracts, and increased transparency of ownership records. But can this technology actually function within Australia’s regulatory environment?
Australia’s Regulatory Sweet Spot
Australia sits “fairly centrist and semi-open” between Switzerland and the US on crypto positioning. We’ve found a regulatory sweet spot that provides clarity without stifling innovation.
The proof? Block Earner launched Australia’s first Bitcoin-backed mortgage in July 2025. This demonstrates regulatory acceptance of crypto-backed property finance solutions—a foundation that property tokenisation can build upon.
Data from crypto exchange Binance shows “institutional adoption surged via spot ETFs, corporate holdings 848.1K BTC, and emerging on-chain use cases like BTCFi, reinforcing BTC’s role as a top-tier global asset”. This institutional infrastructure is directly supportive of property tokenisation platforms.
Australia’s balanced position is in stark contrast with restrictive jurisdictions, and we are creating space for property tokenisation to flourish organically, and not be blighted by the regulatory whiplash experienced by innovators elsewhere.
Of course, there are still hurdles to overcome, and there is a need for continued refinement of the acceptance of property tokenisation and legal framework aspects. Valuation approaches will need local expertise and robust systems to rely on, but the strong building blocks are in place.
Early Adopters and Market Signals
Here’s what the data is telling us. Despite having high failure rates, start-ups in the Blockchain-driven real estate space that are still active signify genuine use for fractional ownership and liquidity creation.
The 27% annual growth prediction for tokenised real estate will not be driven by retail speculation; it reflects institutions’ recognition of efficiency improvements and market opportunity. Professional property managers and institutional investors are increasingly viewing tokenisation as a portfolio diversification tool rather than a speculative play. This institutional perspective brings the rigorous due diligence and risk management frameworks necessary for sustainable market development, creating a foundation that retail investors can trust and regulators can monitor effectively.
Let’s think about our current housing circumstances.
We are currently facing a dwelling shortfall of 262,000 compared to the 1.2 million Housing Accord target. House prices increased 4.9% in 2024, with forecasts of 4-6% expected in 2025. Alternative ownership models are not only interesting but are becoming essential.
According to Binance CEO Richard Teng, “The GENIUS Act represents what the crypto industry has long needed – clear, comprehensive stablecoin regulation. We’re witnessing the foundation being laid for mainstream digital currency adoption in the U.S. and beyond”. This regulatory momentum supports the infrastructure that tokenisation platforms need.
The key insight? Tokenisation doesn’t directly reduce property prices. Instead, it increases market participation through lower entry barriers.
Think of it this way—more participants can mean more liquid markets, which typically leads to more efficient pricing.
Gradual Pressure, Not Sudden Relief
Tokenisation won’t burst Australia’s housing bubble overnight. But it could gradually increase market liquidity and participation in ways that matter.
The mechanism works through market efficiency rather than price suppression. By enabling fractional ownership, tokenisation potentially spreads demand across more participants while maintaining overall market value.
With our housing market at 4.14 times GDP compared to the US at 1.6 times, any mechanism increasing market efficiency deserves serious consideration.
The projected $4 trillion tokenised real estate market by 2035 suggests gradual, sustainable growth rather than disruptive change. That’s probably what we need—steady pressure rather than market volatility.
Here’s what tokenisation could deliver over time:
- Enhanced market liquidity through fractional ownership accessibility
- Reduced barriers to property investment for younger demographics
- More transparent ownership structures through blockchain records
- Lower transaction costs via automated smart contract processes
The Bigger Picture
Property tokenisation offers incremental cooling mechanisms for Australia’s housing market through enhanced liquidity and broader participation. We’re looking at a practical tool that could gradually moderate market extremes, not a silver bullet.
The technology aligns with our regulatory environment. The market signals suggest genuine institutional interest. The housing crisis demands creative solutions.
Sometimes the most effective approaches aren’t the most dramatic ones. They’re the ones that work quietly, consistently, and sustainably—creating pressure where it’s needed without disrupting what’s working.
Tokenisation might just be one of those solutions. Worth watching, certainly. Is this worth considering as part of a broader strategy to make Australian housing more accessible? Absolutely.