Australia’s home value growth has hit its fastest pace in more than two years as median house prices in the country’s capital cities surge past the $1million mark.
According to Metropole Property Strategists, national dwelling values surged 1.1 per cent in October, marking the strongest monthly gain since June 2023 and pushing the annual growth rate to 6.1 per cent.
The upturn has been gaining pace since the first interest rate cut in February, confirming a new cycle of growth.
The median house price in Australia’s combined capital cities is now $1,091,134, while the average unit price in the capitals is $728,059.
Founder of Metropole Property Strategists Michael Yardney told Daily Mail that despite the cost-of-living crisis, the latest findings confirm Aussies are still finding ways to send property prices through the roof.
‘The resilience of the housing market is something that keeps surprising and confounding a lot of people who keep predicting that properties are unaffordable,’ Mr Yardney said.
He said the federal government’s October expansion of the First Home Guarantee was helping people get into the property market and avoid buying cheap properties.
‘The government is allowing first-time home buyers to buy a home with a five per cent deposit which has been the biggest hurdle for a lot of people,’ he said.
This home at 68 Hoffmans Road, Essendon, can be bought for a tick under $1million
This Hobart home at 21 Trevassa Crescent gives buyers lovely water views
Around one in five home loans last year went to first-time buyers, who can purchase properties worth up to $1.5 million in NSW, $1 million in Queensland, and $950,000 in Victoria.
‘So, it’s helping people get into not only the lower end, but medium-priced properties,’ Mr Yardney explained.
‘We’re going to be seeing a lot of activity at that end of the market and on the ground, we already know that.
‘Every weekend there are auctions in Melbourne and Sydney and 70 per cent or so are being sold and at every auction there’s multiple disappointed bidders.’
Mr Yardney said established home buyers have got a lot of equity, so higher interest rates ‘aren’t bothering them’ while half of homeowners don’t have a mortgage.
He pointed out that while the Australian residential property market was worth $11.8trillion, there was only $2.4trillion of mortgages.
‘As a percentage, there’s actually very low loan-to-value ratio of the whole property market so it’s not about to crash,’ he said.
‘A lot of baby boomers paid off their mortgages a long time ago and others who bought their home 15 years ago have paid off half the mortgage, and in the meantime their property has doubled in value and they have a lot of equity.
Despite the cost-of-living crisis, Aussies are still lining up each week to buy record-breaking properties (pictured, a five-bedroom home in the ACT on the market for $1.09million)
Founder of Metropole Property Strategists Michael Yardney is pictured
‘That’s allowing the market to keep growing because people are buying without too much of a mortgage.’
Data from property solutions business PEXA showed that only about 30 per cent of the transactions in 2024 were without a mortgage.
‘Many people are buying with cash,’ Mr Yardney said.
‘It’s unfortunately becoming a bit of a story of the haves and have nots and it is a concern because middle Australia is disappearing to a degree.
‘People who have got properties are doing very well, while it’s harder for those without a property to get in.’
So, what can $1million buy you in each capital city?
SYDNEY
Sydney’s median house price has soared to more than $1.57million for the first time – an annual increase of 5.1 per cent.
House prices have risen a whopping 38.3 per cent over the past five years.
East of Greenacre, 20km west of the CBD, is a no-go zone for house buyers with a $1million budget.
You’ll have to head nearly 50km west of the Sydney CBD to buy this $1million semi-detached five-bedroom home in Mt Druitt
The closest home around the $1million mark to the Sydney CBD is a $990,000 three-bedroom, one bathroom house at 54 Christian Road, Punchbowl.
Further west in Mt Druitt, a five-bedroom, three bathroom townhouse can be snapped up for $1.1million.
There are an abundance of units to buy in and around the CBD for $1million, mainly one and two-bedroom residences.
MELBOURNE
Mr Yardney said if he was looking to buy a home and get a one-off boost along with long-term growth, he would be looking at Melbourne.
Melbourne property values have risen 17.6 per cent over the past five years and 4.2 per cent since the first rate cut in February, but are still 1.4 per cent below their March 2022 peak, despite rising 0.9 per cent in October.
Mr Yardney said the Melbourne market was currently undervalued.
‘In the next five or ten years Melbourne is going to catch up. Melbourne has underperformed for a number of years while Sydney and Brisbane have boomed ahead,’ he said.
This $1.09million home at 57 Ferry Road in Brisbane comes with plenty of space for a family
‘It’s partly a hangover from Covid, partly economic challenges with the state government, and a lack of confidence.
‘Melbourne has started to pick up over the past three months and you can buy an established property in Melbourne substantially below replacement cost.’
There’s currently a $1million three-bedroom, two-bathroom apartment for sale at 6/24 Tintern Avenue in the swanky suburb of Toorak.
There are many two and three-bedroom homes like the one at 68 Hoffmans Road, in Essendon, available.
BRISBANE
Brisbane’s housing market has skyrocketed over the past five years with 82.5 per cent trough to peak growth, and is currently at a new peak in price.
City median house prices are $1.08million while the average apartment price is $774,498.
Aussies can snap up a $1million home in Queensland’s capital that offers a little more space, meaning they get more bang for their buck.
A three-bedroom, two bathroom $1.09million home at 57 Ferry Road in Thorneside provides buyers with the dream of the traditional Australian backyard.
This three-bedroom, two bathroom $1.09million home at 57 Ferry Road in Thorneside provides buyers with the dream of the traditional Australian backyard
ADELAIDE
The Adelaide property market was one of the top-performing in the country after stalling a little at the beginning of this year.
The city’s homes are comparatively affordable with a median house price of $924,126 while the average unit is $633,959.
A two-story home at 76 Second Avenue in Klemzig has a price guide of $1,080,000 – $1,180,000.
PERTH
Perth’s housing market continues to stand out nationally, remaining the strongest market in the country for monthly and annual home price growth.
‘The relative affordability of the city’s homes, population growth, and very tight rental markets are also supporting home values,’ Mr Yardney said.
There are $1million homes in Perth like 70 President Street that feature spacious yards
The average Perth house costs $926,464 while the median unit price is $650,860.
A typical three-bedroom home for $1million at 170 President Street in Kewdale.
HOBART
After rising 28.2 per cent over the past five years, Hobart home values have fallen and are 8.9 per cent below their March 2022 peak.
Hobart is the weakest capital city market when comparing annual price growth, as well as the change from peak.
The average home costs $735,326 while the median unit price is just $558,932.
You can have River Derwent views and a backyard if you buy the three-bedroom, two-bathroom place at 21 Trevassa Crescent in Tranmere for $995,000.
DARWIN
Darwin is Australia’s most affordable capital city with the average house costing just $671,904 and unit $412,266.
‘The city’s low-density population is driving interest in Darwin property in the post-Covid era,’ Mr Yardney said.
A big five-bedroom home at 32 Ashley Street in Darwin is going for $1million
After rising 37.6 per cent over the past five years, Darwin is at a new peak price after rising 1.6 per cent through October 2025.
A spacious five-bedroom home at 32 Ashley Street, in Stuart Park, can be snapped up for $1million.
CANBERRA
Home prices in Canberra rose in October and were 3.2 per cent higher than their October 2024 levels.
Overall Canberra’s median house prices recorded a 28.8 per cent growth over the past five years but are still 3.5 per cent below their peak in May 2022.
‘The subdued Canberra auction clearance rates throughout the past year are a sign of the weakness of the Canberra property market,’ Mr Yardney said.
A five-bedroom home with a studio at 58 Swain Street, Gungahlin, can be bought for $1.09million.
