Australian property prices have surged to historic highs, marking ten consecutive months of growth and pushing the housing market into record territory. According to PropTrack data, dwelling prices rose nationally by 0.6% in October, bringing median prices 7.5% higher than a year ago. Almost every capital city has now reached a new record high in median dwelling values, except Hobart and Canberra, where values remain slightly below their previous peaks by 3.9% and 1.0% respectively.

PropTrack Senior Economist Eleanor Creagh reports that combined capital city dwelling prices have risen 7.4% over the year, reflecting strong and sustained demand despite higher borrowing costs. Among the standout performers in the house market are Darwin (+12.9%), Regional South Australia (+12%), Perth (+11.3%) and Brisbane (+11.1%). The unit market has also seen robust growth, led by Brisbane at 16.8%, followed by Perth (14.2%) and Regional South Australia (12%).

Three capital cities now hold median house prices exceeding $1 million — Sydney ($1.622 million), Brisbane ($1.126 million), and Melbourne ($1.007 million). Creagh attributes this surge to improved buyer sentiment, increased borrowing capacity, and gradually easing mortgage rates. “The market appears set for further gains through spring and into summer,” she says, “with leadership continuing to rotate as momentum shifts to previous laggards.”

Industry analysts note that rising population levels, tight housing supply, and renewed investor activity are likely to sustain demand into 2026. First-home buyers continue to face significant affordability challenges, while regional markets are also showing signs of renewed strength. With housing supply remaining constrained and buyer confidence rebounding, analysts predict that the property market will continue its upward trajectory in the short term.