House prices across Australia have surged to record levels in every major city except for Canberra, marking a significant challenge for potential buyers. According to data released by Domain on January 21, 2026, house prices increased by a combined 3.9 percent in the December quarter alone and saw an impressive 9.6 percent rise throughout 2025. This translates to an average increase of $111,728 in property values.
Major Cities Experience Unprecedented Growth
The cities of Sydney, Brisbane, Melbourne, Adelaide, Darwin, Perth, and Hobart have all reached new price milestones, with the median house price in Perth now exceeding $1 million. This milestone places Perth alongside Sydney, Melbourne, Canberra, Brisbane, and Adelaide in the million-dollar club, leaving only Canberra without this designation.
Domain’s chief of research and economics, Dr. Nicola Powell, described the growth as “ferocious,” emphasizing that crossing the million-dollar median signifies a critical psychological barrier for many homebuyers. She stated, “It is going to have an impact on confidence among first-home buyers and this feeling of the inability to keep up.”
The rapid increase in prices has put home ownership out of reach for many, leading to longer saving times and challenging trade-offs for prospective buyers. Dr. Powell noted that high demand coupled with limited supply means that buyers may have to stretch their budgets significantly to avoid missing out on available properties.
City-Specific Price Trends
In Sydney, the median house price rose by 6.4 percent over the past year, reaching a record $1.76 million. This represents a rise of $105,487 in just one year. The market’s strength continues, with unit prices also increasing by 2.1 percent in the December quarter, marking the strongest growth in two and a half years. The median price for a unit in Sydney now stands at $844,390.
Melbourne saw its median house price climb by 7.4 percent to $1,111,084, reflecting a significant acceleration in growth. The report indicated that this was the third consecutive quarter of growth, with unit prices also rising by 4.4 percent annually, bringing the median to $601,184.
In Brisbane, the median house price surged to $1,171,237, up 13.3 percent from the previous year. Similarly, Adelaide experienced a median price increase to $1,094,427, up by 11.9 percent, the fastest rate in a year. The housing market in Darwin saw an exceptional rise of 22.4 percent, with the median now at $690,896, compared to $564,581 in December 2024.
Canberra’s housing market also reported an annual growth of 6.1 percent, with the median price now at $1,139,969, just 2.8 percent below its peak. Meanwhile, Hobart’s prices climbed by 6.1 percent in the December quarter, reaching a record $767,451.
The ongoing trends in Australia’s housing market highlight the challenges faced by buyers as property prices skyrocket across major cities. The situation prompts concerns about affordability and accessibility in a market that continues to evolve rapidly.
