House prices are rising at their highest pace in four years with Sydney poised to hit a once-unthinkable median of $2 million by the close of 2026.
After bumper growth of 3.4 per cent in the September quarter, the median harbour city house value sits at $1,751,728. If that growth repeats over the next year, Sydney house prices will sit at $2 million before the end of 2026.
It was only 12 years ago the city, Australia's priciest housing market, broke through the million-dollar benchmark, Domain economics chief Nicola Powell said. "It's wild to think that Sydney's median house price could breach $2 million," she told AAP.
"Sydney has always been the most expensive capital city, with high-priced land, high levels of competition."
Regional growth outpacing capitals
Domain's latest house price report reveals the average house price grew in every market over the past quarter and year.
In city markets, house prices grew by 2.9 per cent in the September quarter, with regional growth outpacing the eight capitals at 3.7 per cent.
Already running at its fastest pace in almost four years, Dr Powell was bullish on even stronger performance to come in the capitals.
"Because we've got momentum building, I think we're going to see a larger number next quarter," she said.
"What's clear this quarter is that we've seen the housing market shift into a higher gear.
"We're likely to see momentum still feeding through markets like Sydney, Melbourne, Brisbane and Canberra, because Canberra and Melbourne aren't even at record highs yet."
The report showed annual house price growth in capital-city markets was 7.5 per cent over 12 months, while regional prices were up a bumper 11.5 per cent.
Units prices weren't far behind, rising at a rate of 5.8 per cent in the year to September in capitals and 10.3 per cent in the regions.
Brisbane now second-most expensive
A surge in Brisbane house prices - up 3.7 per cent in the quarter and 10 per cent annually - lifted the Queensland capital's median above those in Melbourne and Canberra to make it the nation's second most expensive market.
With median house prices sitting at $981,259, Perth is poised to be the sixth capital to top the million-dollar mark when the next report is published in January 2026.
