Australia’s housing market has roared back to life, posting its strongest growth in four years. All eight capital cities recorded solid quarterly gains, with Sydney and Melbourne leading the surge — and Brisbane officially overtaking Melbourne as the nation’s second-most expensive capital city.
Sydney’s median house price now stands at an incredible $1.75 million, after soaring by $58,148 (3.4%) in just 90 days — marking its fastest quarterly rise in more than two years.
Brisbane Overtakes Melbourne
For the first time, Brisbane has claimed second place on the property ladder. The city’s median house price hit $1.1 million, its highest on record, after an extraordinary 11 consecutive quarters of growth — the longest upswing in over two decades.
Melbourne remains resilient, climbing to a $1.083 million median, its highest level in 3.5 years. With just under $10,000 to reach its 2021 peak, the Victorian capital is on track to fully recover before year’s end.
Other Capital Cities on the Rise
- Perth continues its upward climb, now less than $19,000 shy of the $1 million mark — expected to break through before the end of 2025.
- Canberra trails just behind Brisbane with a $1.1 million median, placing it as the nation’s third most expensive city.
- Hobart recorded a strong 4.7% rise ($33,150), pushing its median to $744,926.
- Adelaide, after entering the million-dollar club last quarter, rose another $32,807, bringing its median to $1.049 million.
- Darwin saw the strongest quarterly gain across all capitals — up 5.3% to $656,858, its highest level in nearly a decade.
Sydney Heads Toward $2 Million by 2027
Experts predict Sydney’s housing market could reach a $2 million median price by 2027 — an increase of just 14.2% (around $250,000) from current levels. This projection highlights the ongoing demand and limited supply driving Australia’s most expensive city.
While Sydney’s $1.75 million median still stands $650,000 higher than Brisbane’s, the gap narrows when comparing unit prices, where Brisbane trails by just $124,000.
Market Outlook: What’s Next for Australia’s Housing Market
As 2025 approaches, market momentum shows no sign of slowing. With three RBA rate cuts expected and the expanded 5% Deposit Scheme underway, property prices are projected to accelerate further into the next quarter.
Both houses and units are likely to benefit as buyers compete for better value across Australia’s capital cities and regional hubs.
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