Property values could reach new price peak in two months, new Domain report shows

Woman worried about how much territory house values will regain by the end of 2023.

Great news for homeowners, bad news for home buyers: Domain says house and unit prices in Australia’s capital cities will fully recover value lost in the 2022 downturn by the end of 2023 – in two months. 

According to Domain’s House Price Report for the September quarter, house prices will reach a new peak in the capital cities if they gain another $2,000 in value. Units, usually the most affordable option for first-home buyers, only need $5,000. 

The report suggests price growth is primarily driven by interstate and overseas migration, a tight rental market, and chronic real estate undersupply. This is the third month in a row that property values have surged in Australia, as well, though Domain writes the pace of growth has slowed somewhat in September (1.8% growth). 

“It is worth pointing out that the pace of growth is currently being somewhat contained by the stretched affordability,” explains Domain’s chief of research and economics, Nicola Powell.

“If mortgage rates weren’t as high as they currently are, price growth would be faster with the current housing undersupply. So for buyers who are in the position of considering purchasing, it is important to weigh up the pros and cons of delaying their purchasing timing along with financial planning.”

Currently, the average variable interest rate for owner-occupiers is 6.61% p.a. in the Mozo database, but if the RBA hikes interest rates in November, this average will undoubtedly climb. 

How far median Australian property prices are from their peak (Domain - Oct 2023)

City
Median house price
Price from peak
Median unit price
Price from peak
Sydney
$1,578,099
-0.8%
$781,024
-3.0%
Melbourne
$1,032,266
-5.7%
$573,067
-4.7%
Brisbane
$848,752
-1.0%
$495,143
0.0%
Adelaide
$844,654
0.0%
$466,379
0.0%
Canberra
$1,042,730
-11.3%
$567,059
-7.0%
Perth
$713,811
0.0%
$379,347
-10.1%
Hobart
$717,004
-6.1%
$503,133
-11.5%
Darwin
$577,659
-14.9%
$369,860
-24.0%
Combined capitals
$1,072,480
-0.2%
$622,743
-0.8%

Home loan amounts needed to buy property inevitably increase as prices do. The average mortgage size in Australia is already at an eye-watering $585k, and Aussies need six-figure savings to afford the standard home loan deposit. 

A new price peak could make affording a home loan a lot trickier for first-home buyers – and if interest rates go high enough, it could ironically kill capital growth. Therefore, the cost of housing finance is a critical bellwether to watch in the housing market, not just prices. 

However, Domain says the home value momentum is self-sustaining for now. 

“September’s quarter confirms all Australian capital cities are in recovery or at a price peak,” says Powell. 

“Sydney continues to lead the recovery, with Brisbane close by. By the end of the calendar year, house prices in Sydney and Brisbane are anticipated to recover fully from the 2022 downturn, reaching new records.”

Finding a unique way into the property market, such as government schemes or rentvesting far afield, might be the only foot in the door many Australians can get. If you are in a position to get a home loan, be sure to compare some of the better ones on our best home loans hub. 

Compare low rate home loans in the table below.

Last updated 21 April 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.65 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • Built by CommBank
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Promoted

    Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.78 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,927
    Go to site
    • $0 application fee to pay
    • Unlimited additional repayments
    • Apply in as little as 15 minutes
  • Promoted

    Basic Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 30% min deposit
    • Redraw available
    Interest rate
    5.39 % p.a.
    Fixed 2 years
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • No ongoing fees
    • Free redraw from your loan using Macquarie Online.
    • No application or account management fees
  • Promoted

    Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.91 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.
  • Promoted

    Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.96 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options
  • Promoted

    Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.83 % p.a.
    Initial monthly repayment
    $2,931
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.
  • Basic Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 30% min deposit
    • Redraw available
    Interest rate
    5.39 % p.a.
    Fixed 2 years
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • No ongoing fees
    • Free redraw from your loan using Macquarie Online.
    • No application or account management fees
  • 2-Year Discounted - Simple Home Loan Variable

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable for 24 months and then 5.74% p.a.
    Comparison rate
    5.69 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.91 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.
  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.96 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options
Showing 7 results from 415 home loans. Use the filters to see more

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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. You can change the loan amount and term in the input boxes at the top of this table. 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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