Choosing a diamond, especially for something as meaningful as an engagement ring, is an exciting yet complex journey. In Australia, 2025 has brought a dynamic diamond market shaped by evolving consumer preferences, economic factors, and the rise of ethical alternatives. When you want a 1-carat diamond, you should understand the price range and the factors that drive that price to help you make a wise decision. At Pear Jewels Australia, we specialize in lab-grown diamonds that are brilliant and sustainable at affordable prices. This guide will look at the price of a 1-carat diamond in 2025 in Australia. It covers the key aspects that influence prices and offers the information that helps you to select the appropriate stone.
The Four Cs: The Core Drivers of Diamond Price
The diamond industry uses Four Cs of cut, color, clarity and carat to evaluate the value of a stone. They are all factors all universally known that are key to pricing, be it in terms of a natural or lab-grown diamond.
Cut: The cut of a diamond is the proportions, symmetry, and polish that determine the way a diamond bounces the light back. A properly cut diamond with an Excellent or Ideal grade will give maximum brilliance, and thus seems brighter and larger than a poorly cut diamond of the same weight. An Excellent cut 1-carat natural diamond will fetch a premium in 2025, and will tend to lean toward the better side of the price range, with the highest quality (excellent cut) priced at approximately A$12,000 to A$27,000. Grown-in-the-laboratory diamonds of the same quality of cut cost less, averaging between A$2,000 to A$4,000. A diamond of Fair or Poor cut, no matter what other attributes it possesses, can pass off as dull and can be priced much lower, but it is hardly a good investment to make when one values sparkle. At Pear Jewels, we focus on Excellent cuts so that the lab-grown diamonds will have the highest brilliance.
Color: Diamond color is rated between D (colorless) and Z (light yellow or brown). The most valuable ones are colorless (D-F) and the price of a 1-carat natural diamond in this category can be as high as more than A$12,000. G-H grades are nearly colorless and mid-range in terms of beauty and value, with natural stones costing between A$8,000 to A$15,000 and lab-made costing between A$1,500 to A$3,000. The more affordable diamonds with visible yellow hues (K+) begin at A$2,400 natural and less than A$1,000 lab-grown. Even slightly different color variations can barely be noticed by the naked eye, particularly in well cut stones hence G or H colors are a great favorite among value conscious customers.
Clarity: Clarity quantifies the flawiness of a diamond (both internal and on the surface). The grades are Flawless (FL) to Included (I). The majority of inclusions are small, and thus diamonds classified as VS (Very Slightly Included) and SI (Slightly Included) lack visible indications of inclusion that would otherwise be visible to the layperson and provide great value. A 1-carat natural diamond with VVS or crystal clarity is priced at A$12,000 to A$27,000, whereas an SI clarity stone will be priced at between A$4000 to A$8000. Lab-grown diamonds are graded in the same way, but cost less, with VS clarity stones often costing below A$3000. To maintain transparency and confidence, Pear Jewels has gone to the extent of ensuring that all our lab-grown diamonds are graded by reputable lab like IGI or GIA.
Carat: It is worth mentioning that carat weight is a factor that has a substantial effect on price. Engagement rings can be made with a 1-carat diamond, which is considered the most popular size because it is neither too small nor too large. The price increases in full-carat increments, the difference in price between a 0.99-carat diamond and a 1.01-carat stone of the same quality can be significantly lower, because the pricing grid of the industry operates in full-carat increments. Lab-grown diamonds reduce this price increase to make it more affordable to purchase a 1-carat stone.
Natural vs. Lab-Grown Diamonds: A Key Price Factor
The emergence of lab-grown diamonds is considered one of the greatest changes in the diamond market. Lab-grown stones are chemically and visually the same as natural diamonds, are produced in regulated conditions, which minimizes their environmental and cost-impact. In 2025, growing diamonds in laboratories is a popular option in Australia as it is cheap and ethical. A 1-carat laboratory grown diamond would cost between A$800 and A$5000, as opposed to A$2400 to A$27,000 dollars on natural ones. This price premium has only increased over the past few years, as lab-grown diamonds are as cheap as 15% of a similar natural diamond. Our lab-grown diamonds are IGI or GIA certified at Pear Jewels, which means they are not only high-quality and transparent but also affordable.
Diamond preferences are mostly determined by priorities when it comes to buying natural versus lab-grown diamonds. Natural diamonds are associated with a sense of investment and tradition, and attract those who consider them. Nevertheless, they have fluctuating prices, and since 2022, natural 1-carat diamond prices fell by 30% because of the oversupply and low demand. Grown in the laboratory, diamonds do not have the same resale price, but have stable pricing and can be seen as ethical, which appeals to environmentally-conscious consumers.
Other Factors Influencing Diamond Prices
In addition to the Four Cs, there are other external and internal forces that influence the prices of diamonds in Australia in 2025.
Market Dynamics: Pricing is very sensitive to supply and demand. In 2025, the price of natural diamonds has weakened, and over the last several weeks, this trend has been reduced by 1.9% due to the excess supply of both natural and artificial stones. Lab-grown diamond prices on the other hand have gone up by only 1.1% because of the rising consumer demand. Supply chains, especially smaller stones have been affected by global events, including the G7 ban on importing Russian diamonds, resulting in volatility in prices. The Australian local trade dynamics and the exchange rates largely contribute to the situation in Australia, as the Australian dollar softens part of the price changes when compared to the American market.
Diamond Shape: The diamond shape influences the price as per the demand and the cost of production. The most expensive, and thus the most sought after, are round brilliant cuts, which cost 10-20% higher than the fancy cuts such as princess, cushion, or oval. A 1-carat round natural diamond will cost between A$3,000 and A$20,000, and a cushion or oval will cost between A$2,400 and A$15,000. Lab-grown diamonds follow the same directions but at price discounts. Pear Jewels has a variety of shapes and allows the client to strike a balance between fashion and cost.
Setting and Metal: Metal and setting of a diamond ring have a great influence on the total price of the ring. A platinum or 18k gold diamond of 1 carat will be more expensive than 14k gold or silver diamond of 1 carat. Setting costs have risen in 2025 by adding between A$500 and A$2,000 to the end-price of a ring due to higher gold prices. Complex designs such as pavé or halo, which use more small diamonds, add to expenses as well. At Pear Jewels, we have adjustable settings where you can fit a lab-grown diamond with a band of your choice and financial capability.
Certification: The grading report of a diamond, released by a well known grading lab such as GIA or IGI, is a guarantee of transparency and a price determinant. Certified diamonds cost more because they are quality checked. Lab-grown diamonds that are typically graded by IGI are lower to certify, and it helps keep the costs down. Pear Jewels certifies all our jewels and is a source of peace.
Regional and Economic: The Q2 2025 average price of diamond in Australia was 4,200 USD per carat (around A$6,300) because of the production rate in the region and the worldwide market dynamics. This has historically influenced prices in terms of rare colored diamonds such as pinks, as Western Australia produces most of the diamond production, especially through now-closed mines such as Argyle, which can fetch between A$5,000 and A$700,000 a 1-carat stone. Economic influences are another reason, including inflation and consumer expenditure, and careful purchasing in 2025 pulls back high-end natural diamond demand.
Tips for Getting the Best Value
In order to buy 1 carat diamond in Australia, these tips should be considered in order to maximise value:
-
Focus on Cut Quality: A great cut brings out the brilliance and the minor flaws in colour or clarity become less pronounced. This applies particularly to lab-grown diamonds, in which you can afford a better cut grade.
-
Choose Near-Colorless Grades: G or H color diamonds look almost exactly like colorless stones at a reduced price, particularly when they are lab-grown.
-
Decide to go with Lab-Grown: If you are on a tight-budget, Lab-grown diamonds cost half the cost and are just as sparkling and jewel-like. Lab-grown diamonds sold by Pear Jewels are a cheaper option that would not affect quality.
-
Think Smaller: The price point will make a diamond of 0.9 carats appear almost the same as one of 1 carat, which will cost a great deal more.
-
Design Your Own Ring with Pear Jewels: You can design your own jewellery and it can be sent to you because we have virtual consultations and 24/7 service where you can design your own ring that suits your budget and taste and you will see pictures and videos before it is shipped to you.
Why Choose Pear Jewels?
At Pear Jewels Australia, we believe in ensuring that your experience in buying the diamond is both smooth and meaningful. Our lab-grown diamonds are of superior quality certified by IGI or GIA but sold at prices that allow our customers to dream of 1-carat. As the maker of rings that embody your values and the source of your love, we assist you in designing your own customizable ring, ethically sourced and dedicated to working with customers. And, whether you are attracted by the low cost of diamond grown in laboratories or the traditional value of a 1-carat stone, we are here to help you through each step of the process.
Navigating the 2025 Market
The price of one carat diamond in Australia in 2025 will indicate a combination of quality, origin, and market trends. The natural diamonds sell between A$2,400 and A$27,000, and the lab-grown ones, such as Pear Jewels, are sold at 800 and above, with no competition. Pricing is determined by the Four Cs cut, color, clarity and carat, although shape, setting, certification, and economic conditions are also contributing factors. With these dynamics, you can identify a diamond that shines within your budget by knowing what is most important to you. Come to Pear Jewels and see our line of lab-grown diamonds and begin to create a ring that tells your story.