‘Wild’ $2m forecast for nation’s priciest house market
House prices are rising at the fastest pace in four years, with Sydney set to reach a once-unthinkable $2 million median price by the end of 2026.
Following massive growth of 3.4 per cent in the September quarter, the average port city home value stands at $1,751,728.
If this growth repeats next year, Sydney house prices will remain at $2 million by the end of 2026.
Domain economics chief Nicola Powell said the city, Australia’s most expensive housing market, broke the million-dollar benchmark just 12 years ago.
“It’s crazy to think Sydney’s median house price could top $2 million,” he told AAP.
“Sydney has always been the most expensive capital city, with high priced land and high levels of competition.”
Domain’s latest house price reportThe report, released Thursday, reveals that the average home price increased in every market last quarter and year.
House prices in city markets rose by 2.9 percent in the September quarter, while regional growth outpaced eight capital cities at 3.7 percent.
Already achieving the fastest pace in almost four years, Dr. Powell was optimistic about an even stronger performance in capital cities.
“I think we will see a bigger number next quarter as we gain momentum,” he said.
“What’s evident this quarter is that we’re seeing the housing market shift into a higher gear.
“We will still see momentum fueled in markets such as Sydney, Melbourne, Brisbane and Canberra as Canberra and Melbourne have not yet reached record highs.”
Factors supporting growth are the Central Bank’s interest rate cuts in February, May and August, low stock levels and increased confidence.
“We have seen an increase in real incomes (and) consumer confidence is higher now than it was 12 months ago, which reflects positively on the housing market,” Dr Powell said.
He added that the government’s new five per cent deposit scheme for new home buyers would also increase demand for cheaper homes.
The report showed that the annual house price increase in the capital markets was 7.5 percent in 12 months, while regional prices increased by 11.5 percent.
Unit prices were not far behind either; It increased by 5.8 percent in the capitals and 10.3 percent in the regions throughout the year until September.
The rise in Brisbane house prices (up 3.7 per cent in the quarter and 10 per cent annually) has pushed the Queensland capital’s average value above Melbourne and Canberra, making it the country’s second most expensive market.
Perth, where average house prices stand at $981,259, is set to become the sixth capital city to surpass the million-dollar mark when the next report is published in January 2026.
AUSTRALIA’S MEDIUM HOUSING PRICES
Sydney: $1,752 million – up 3.4 per cent quarter on quarter and 6.3 per cent year on year
Brisbane: $1,101 million – up 3.7 per quarter, up 10 per cent annually
Canberra: $1.1 million – 2.4 per cent quarterly increase, 2.7 per cent annual increase
Melbourne: $1,083 million – up 2.2 quarterly, 6.2 percent annually
Adelaide: $1,049 million – up 3.3 quarterly, 10.5 percent annually
Perth: $981k – up 1.6 percent quarterly, 10 percent annually
Hobart: $745k – up 4.7 per quarter, 8 per cent annually
Darwin: $659,000 – 5.3 quarterly increase, 7.3 percent annual increase
Regional: $698K – up 3.7 percent quarterly, 11.5 percent annually
*Source: Domain’s quarterly house prices report for September
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
