Domain's latest House Price Report revealed median house prices in all capital cities rose 2.4% over the June quarter to $1.15 million.
Similarly, median unit prices Down Under were up 0.3% from the previous quarter to $646,486.
House prices in all capital cities except Hobart posted quarterly gains, with Sydney, Brisbane, Adelaide, and Perth hitting new records.
Perth (up 6.6% q/q) and Brisbane (up 4% q/q) continue to be standouts, with house values rising about 1.5 times faster than in the previous quarter and double that of the same time last year.
"This acceleration has pushed Perth's annual gains to a 17-year high (at 23.8%) and a two-year high for Brisbane (at 16.9%)," Domain research chief Dr Nicola Powell said.
Brisbane property values soar
Notably, the median house price in the Queensland capital is on track to reach $1 million over the next quarter.
This will outrun Domain's own price forecast, which pencilled-in June 2025 for Brisbane to crack the million-dollar mark.
"It would only take another $24,000 (or 2.4%) increase for this milestone to be achieved," Dr Powell said.
This will place Brisbane in the same league as Sydney, Melbourne, and Canberra where house prices hover above one million dollars.
Based on Domain's report, aspiring property owners in Brisbane will need $976,464 to purchase a home before the goalpost moves further.
Apartment buyers, on the other hand, will need $579,823, after median unit prices in the city climbed 3.2% in the June quarter.
"It is the longest continuous stretch of growth for Brisbane unit prices since 2005-08 (11 quarters)," Dr Powell noted.
Domain's research team also found that unit costs in Brisbane have risen by $249 over the past year, marking the second steepest rise in the city's history.
Median house prices in capital cities
Save for the 1.1% decline in Hobart and the flat growth (0.1%) in Darwin, all capital cities saw house price increases over the June quarter.
"Melbourne and Canberra, two cities that have struggled to move into an established recovery, have seen an improvement," Dr Powell said.
Melbourne house prices recorded the strongest quarterly gain (1.7%) in 2.5 years, and Canberra houses posted a positive quarterly growth (0.8%) to nudge annual changes back into positive territory for the first time in almost two years.
Median unit prices in capital cities
Perth (up 7.8%) and Adelaide (up 5%) posted the strongest gains in unit prices across all capital cities.
Along with Brisbane, the three property market standouts were the only cities with record-high unit prices.
Zooming into the figures, quarterly unit prices in all capital cities did in fact decelerate, except Canberra and Adelaide (where the cost of units has risen by $182 per day).
Australia's property price growth tapers off
Despite the sixth and fifth consecutive quarters of growth for houses and units, respectively, the pace of price movement in Australia was noted to have slowed down.
The deceleration is more pronounced for units, which grew at a rate over four times slower than the previous quarter, and the slowest quarterly growth since early 2023.
According to Domain, the slowdown was driven by an increasing number of homes available on the market, up 7% annually across the combined capitals.
"Underlying this has been a 9% increase in new listings which can be an indication of restored vendor confidence that typically follows the cementing of a market recovery and sustained price rises," Dr Powell said.
"However, stretched affordability is increasing the time it takes to sell across some cities as buyers become more cautious in their search for their ideal property."
While it remains to be seen whether the Stage 3 tax cuts and cost-of-living measures from the Federal Budget will alleviate some financial pressures and help more Aussies get onto the property ladder, the Domain research chief noted that the price growth trend is "unlikely to reverse itself".
"Building approvals across the country have been on a declining trend since 2021, an indicator of constrained supply," she said.
Homes greenlit for construction lifted 5.5% in May on the back of elevated apartment approvals, according to the latest data from the ABS.
Despite the month-on-month gains, the 164,000 dwellings approved over the year still lagged behind the target rate (240k/year) to meet the government's goal to house the nation.
The persistent low volume of building approvals is among the noted contributors to supply constraints that add upward pressures to housing prices and rents.
"However," Dr Powell said, "the persistent price growth trend may be tempered by higher cash rates and inflation in the long run, so there might be some relief for those looking to enter the market."
Photo by Curtis Adams on Pexels
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