Australian house prices have reached unprecedented levels, with every major city except Canberra experiencing record highs. Data from Domain indicates that house prices across the country increased by a combined 3.9 percent in the December quarter of 2025. This follows a significant annual rise of 9.6 percent, translating to an increase of approximately $111,728.
Record Highs Across Major Cities
The surge in prices has resulted in six capital cities—Sydney, Brisbane, Melbourne, Adelaide, Perth, and Hobart—recording median house prices exceeding $1 million. Notably, Perth has joined this group, marking its median house price at $1 million for the first time. Domain’s chief of research and economics, Dr. Nicola Powell, described the growth as “ferocious,” highlighting the psychological impact of crossing the million-dollar threshold for many potential buyers.
Dr. Powell emphasized the effect this rapid growth has on first-home buyers, stating, “When there is a lack of choice, that means that budgets get deeper for buyers, because they become very fearful of missing out.” The increasing prices have made home ownership increasingly elusive for many Australians, with longer saving times and tougher trade-offs becoming the norm.
The demand in the Sydney housing market remains particularly strong. In the past year, the median house price rose by 6.4 percent, approximately $105,487, reaching a record $1.76 million. This marks the third consecutive quarter of growth, according to Domain’s latest report. Additionally, the report indicates that Sydney’s unit prices also experienced a notable rise, climbing 2.1 percent in the December quarter to a record $844,390.
Price Increases in Other Cities
Melbourne has also seen significant price increases, with the median house price rising by 7.4 percent over the past year, now standing at $1,111,084. The growth in this market has accelerated over the past three quarters, nearly doubling the pace of the previous year. Unit prices in Melbourne climbed 4.4 percent annually, reaching a median of $601,184, marking it as the third most affordable capital city for unit purchases for the first time on record.
Brisbane is witnessing a similar trend, with its median house price now at $1,171,237, a 13.3 percent increase from the previous year. Adelaide follows closely behind, with its median reaching $1,094,427, up 11.9 percent. In Darwin, the housing market has surged by 22.4 percent, with a median price of $690,896.
Canberra’s market has also shown positive momentum, experiencing a growth rate of 6.1 percent, reaching a median price of $1,139,969. This growth represents the strongest performance in over three years, bringing prices just 2.8 percent below their previous peak.
Hobart has not been left behind, either, with its house prices climbing 6.1 percent in the December quarter to reach a record $767,451, marking the strongest quarterly result in four years.
The current trends in the Australian housing market signal a challenging environment for potential buyers, particularly first-home purchasers, as record prices continue to reshape the landscape of home ownership across the nation.
