Rapid price growth across capital city housing markets has reshaped the affordability landscape.
Following strong gains in 2025, six capital cities now record median house prices above the $1 million mark, highlighting the extent of Australia’s long-running housing boom.
Domain analysis shows that across the combined capital cities, median house prices rose by 9.6% over the year. Units also recorded solid growth, with median values increasing by 6.8%. These gains pushed several markets into new price territory, most notably Perth.
Perth’s median house price rose by 9.9% over the year, taking it above $1 million for the first time. The city now joins Sydney, Melbourne, Brisbane, Adelaide and Canberra in the million dollar median club. For a market long viewed as relatively affordable, the shift has been significant.
Domain chief of research and economics Nicola Powell says strong demand from interstate and international migrants has been a key driver of Perth’s price growth. Western Australia has benefited from population inflows linked to employment opportunities and lifestyle appeal, placing sustained pressure on housing supply.
Powell notes that both Perth and Adelaide were once widely described as affordable alternatives to the eastern capitals. With both cities now recording median house prices above $1 million, that label has become harder to justify. The change underscores how quickly market dynamics can shift when supply fails to keep pace with demand.
Looking ahead, Powell expects price momentum to continue in several capitals. She predicts Sydney’s median house price could reach $2 million by 2027, reflecting chronic undersupply and strong demand in established suburbs. Brisbane is also forecast to see continued growth in the lead up to the 2032 Olympic and Paralympic Games, as infrastructure investment and population growth support housing demand.
Domain data shows that median house values in all capital cities except Canberra are now at their highest levels on record. Even in markets where growth has moderated, prices remain well above pre pandemic benchmarks.
For buyers, the expansion of the million dollar club has practical implications. Entry points into capital city markets are higher, pushing many purchasers toward units, townhouses or fringe locations. It has also increased the importance of suburb selection, with significant price variation still evident within each city.
While headline medians attract attention, underlying market conditions vary. Some cities are experiencing broad based growth, while others are driven by specific segments or locations. Understanding those nuances is critical for buyers seeking long-term value rather than chasing momentum.
