Median house prices in Australian capital cities surpass $1 million

Terrace houses on a sunny day in a capital city which has experienced significant home price growth.

House prices have continued their meteoric rise in Australia, in particular around capital cities where the median house price has hit a record $1.066 million.

This figure comes from Domain’s most recent house price report, which recorded mind-boggling year-on-year price growth of 25.2% across all the capitals. Quarterly increases were also seen in every city bar Darwin, where house values held steady since September.

While yearly house price increases were as high as 36.6% in Canberra – with Hobart (34.6%) and Sydney (33.1%) not far behind – quarterly rises weren’t as notable (a maximum of 11.3% in Canberra). This could suggest growth pace peaked in early 2021, and we may continue to see some decline down the line.

But that still leaves home owners in a position where their properties have accrued hugely significant value. 

In Sydney for example, the report data shows house prices rising by approximately $1,100 each day over 2021, meaning an average house became almost $400,000 more valuable last year.

City folk who own units have also seen considerable property value gains over the past 12 months and in the last quarter, although not at the same rate as house owners. When looking at units across the capitals, prices rose by 7.7% year-on-year and 1.9% for the last quarter. 

This equates to house prices rising about three times faster than units throughout 2021.

For those still just dreaming about owning their own home, this all means that goal may be harder to reach.The impact of wild property prices is compounded by stagnant wage growth that continues to be outstripped by the rising consumer price index (one measure of the cost of living that’s recorded by the Australian Bureau of Statistics).

Home loan interest rates have also been on the move recently, with fixed rates steadily climbing in anticipation of the Reserve Bank increasing the cash rate earlier than originally planned. Meanwhile, banks and lenders have maintained some rock-bottom variable rates in an effort to draw borrowers away from locking in longer fixed terms while they are still relatively competitive, as more hikes are likely on the horizon.

If you’re keen to explore mortgage rates and features available right now, head to our home loans comparison page or check out a few of the options below.

Compare home loans - last updated 18 May 2022

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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