Capital City House Prices Surge at Fastest Pace In Four Years

Australia’s housing market is heating up with property prices across capital cities rising at their fastest rate in almost four years, as nearly every capital city recorded gains for both houses and units in the September quarter.

According to Domain’s September Quarter House Price Report, Sydney, Brisbane, Adelaide and Perth all reached new record highs, while Melbourne, Hobart, Canberra and Darwin achieved their strongest results in years, signalling broad-based momentum across the country.

Sydney’s median house price climbed 3.4 per cent in the quarter, adding $58,148 to reach a record $1.75 million – the city’s biggest jump in more than two years. Brisbane has overtaken Melbourne to become the second-most expensive city for house buyers, with prices climbing 3.7 per cent to $1.1 million.

Melbourne also posted its best result in nearly four years, rising 2.2 per cent to $1.083 million, while Adelaide’s steady growth continued with a 3.2 per cent lift to $1.05 million, marking the longest period of uninterrupted price increases in two decades.

Perth remains on track to join the million-dollar club, with its median price now at $981,259, up 1.6 per cent in the quarter. Domain expects it to break the $1 million mark before the end of 2025.

The strong performance extends beyond houses, with units outperforming houses in several cities including Brisbane, Adelaide, Perth and Darwin, as affordability constraints push more buyers toward apartment living.

Adelaide’s unit prices jumped 5 per cent to $632,660, while Brisbane recorded its 18th straight quarter of growth, up 4.2 per cent to $715,451. Darwin led the country for unit gains, up 6.5 per cent to $388,504, its highest level in eight years, further demonstrating the widespread nature of the current property boom. Only Canberra’s unit market missed out on gains during the quarter, bucking the national trend of rising prices across both housing types.

Domain Chief of Research and Economics Dr Nicola Powell attributed the results to a combination of policy support, low supply and improved buyer sentiment driving the market forward. “Three RBA rate cuts this year, rising consumer confidence, low levels of supply, and the strongest auction clearance rates in over two years are driving house and unit price growth across Australia’s capitals,” Dr Powell said.

The recent implementation of government support programs is expected to further fuel market activity in the coming months. “With the Australian Government’s 5% Home Guarantee now underway, we expect this momentum to accelerate further into the final quarter of the year, supporting both houses and units as buyers chase better value in a competitive market,” Dr Powell said.

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