Unit prices rise as affordability pressures shift buyer focus
House prices across Australia’s major cities have increased at their fastest rate since late 2021, according to property listing firm Domain.
The company’s September Quarter House Price Report reveals that all capitals, except for Canberra units, recorded price gains for both houses and units in the last quarter.
Sydney, Brisbane, Adelaide and Perth reached new record highs, while Melbourne, Hobart, Canberra and Darwin posted their highest median prices in several years.
Sydney’s median house price rose by 3.4% over the quarter, up $58,148, marking the city’s strongest quarterly growth in more than two years and setting a new record at $1.75 million. Annual growth stands at 6.3%, positioning Sydney to potentially surpass a $2 million median by 2027.
Brisbane’s median house price increased by 3.7%, or $38,852, reaching $1.1 million. This milestone places Brisbane as the nation’s second most expensive city for house purchases. Melbourne saw a 2.2% rise, with the median house price climbing by $23,045 to $1.083 million, its highest point in almost four years.
Adelaide continued its period of uninterrupted growth, with house prices up 3.2% ($32,807) last quarter. The city’s annual growth rate of 10.5% is currently the highest among all capitals. Perth’s median house price rose 1.6% ($15,382) to $981,259, bringing it within $19,000 of the $1 million mark, a milestone expected to be reached before year-end.
Affordability constraints are influencing buyer behaviour, with unit prices now rising faster than house prices in Brisbane, Adelaide, Perth and Darwin. In Adelaide, unit prices increased by 5% ($30,330) to $632,660, making it the third most expensive city for units, a significant change from being the most affordable less than four years ago. Brisbane’s unit market has now recorded 18 consecutive quarters of growth, with values up 4.2% ($29,076) to a record $715,451. Darwin led the capitals in quarterly unit growth, with a 6.5% rise ($23,546) to $388,504, reaching an eight-year high.
“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,” said Nicola Powell, chief of research and economics at Domain.
“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.”
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