Capital city medians push through $1 million as national prices hit new peak
Australia’s residential property prices rose again in February, despite elevated interest rates and broader economic uncertainty, according to new data from PropTrack.
National dwelling values increased by an average of 0.5% over the month and now sit 9.1% higher than a year earlier, equivalent to almost $90,000 in additional value on the typical home. The figures highlight continued demand from buyers even as borrowing costs remain restrictive.
Brisbane, Adelaide and Perth once more led growth among the mainland capitals, recording monthly gains of between 0.6% and 0.7%. Median dwelling prices in all three cities are now significantly above levels recorded 12 months ago.
Perth has been the standout performer over the past year, with dwelling values rising by close to 20%, or around $170,000. Brisbane prices have lifted by nearly 16%, adding about $153,000, while Adelaide values are up 15%, or roughly $120,000, over the same period.
Hobart, which had struggled for several years, posted the strongest monthly increase in February, with prices up 1%. Values there are now about 9.1% higher than a year ago, pointing to a marked recovery in that market.
Price growth in Sydney and Melbourne was more subdued. Melbourne recorded a 0.3% rise in February and annual growth of 3.4%. Sydney’s dwelling values increased by 0.5% over the month and 6.1% over the year. Even with slower percentage growth than some smaller capitals, Sydney’s high base meant homeowners booked average gains of close to $103,000 over the past 12 months.
Analysts have linked the ongoing price pressures to a combination of historically low listing volumes, weaker construction activity in several regions and above-trend population growth. Limited new stock is meeting strong underlying demand, leaving buyers competing for a relatively small pool of available properties.
The federal government’s First Home Guarantee Scheme has also been identified as a factor contributing to recent price dynamics, particularly at the lower end of the market. The scheme allows eligible first-home buyers to purchase with smaller deposits, effectively bringing more demand forward.
REA Group economist Eleanor Creagh said the scheme, combined with a shift towards more affordable options, had helped push unit values up more quickly than house prices. She explained that this shift made sense in the contect of strong house price growth over an extended period, adding that “demand is facing into tight supply.”
Creagh noted that capital city values also rose 0.5% over the month, pushing the combined median to $1,004,000 – the first time the capital city benchmark has exceeded $1 million. She highlighted that house prices in Perth, Adelaide and Brisbane are approaching double their levels of five years ago. “A $1 million median represents a significant shift in the housing landscape,” she said.
Creagh described February’s 0.5% national monthly gain as “fairly strong” but said such growth rates may not be sustained. “We will see growth slowing, especially with another rate rise,” she said. “We can expect growth over the coming period to be slower and more uneven.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
