A view towards Mosman Bay in Sydney NSW with Sail boats and cloudy sky.
The **median house price** in Australia’s capital cities has surpassed **$1 million** for the first time, reflecting a dramatic shift in the real estate market. According to the **PropTrack Home Price Index**, the combined capital cities’ median price reached **$1,082,000** in July 2023. This milestone highlights the growing challenge for homebuyers, as prices have surged, making **$1 million** insufficient for even modest family homes in many areas.
In detail, **Sydney** remains Australia’s priciest capital city, with a striking median house price of **$1,564,000**. Other notable cities include **Brisbane** at **$1,067,000**, **Melbourne** at **$983,000**, and **Adelaide** at **$916,000**. The trend is not limited to major cities; even smaller capitals are witnessing significant price increases, pushing them closer to this new threshold.
Price Growth Across Capital Cities
The latest data indicates that every capital city, except for the **Australian Capital Territory**, has experienced rising prices. **Anne Flaherty**, a senior economist at **REA Group**, noted that the **ACT** median house price stands at **$959,000**. She attributed the upward trend to lower interest rates, which improve borrowing capacities, yet emphasized that affordability remains a significant hurdle for many potential buyers.
In the last five years, home values in cities like **Brisbane**, **Adelaide**, and **Perth** have soared by approximately **90%**. In contrast, **Sydney** and **Melbourne** have seen increases of **41%** and **19%**, respectively. **Adelaide** has emerged as a standout performer, recently recording the highest growth in both monthly and yearly metrics.
In **Adelaide**, the central and Hills regions have median prices around **$1.25 million**. However, buyers can still find properties under **$1 million** in the city’s northern, southern, and western suburbs, with median prices of **$735,000**, **$894,375**, and **$980,000**, respectively. Local real estate agent **Sarah Sheppard** reported strong demand for homes priced just under the million-dollar mark, particularly in suburbs like **Torrensville** and **Thebarton**.
Challenges for Buyers in Major Cities
In **Brisbane**, the median house price reached **$1.07 million**, pushing buyers to consider outer suburbs for more affordable options. **Ben Carroll**, from **Harcourts Property Centre**, described the current market dynamics, noting that buyers with a budget around **$1 million** face limited choices. They might opt for a unit or townhouse, a modern home on a small block, or a dated house in more established areas.
For example, a three-bedroom home in **Hemmant** recently sold for **$910,000**, illustrating the competitive landscape for potential homeowners. Carroll highlighted that many first-time buyers are looking at properties priced around **$1.1 million** to enter the market.
In **Sydney**, the high median price of **$1.56 million** leaves buyers with few options. **Zac Cronin**, from **My Property Consultants**, noted that families are increasingly turning to areas like **Gregory Hills** for more affordable housing. Here, buyers can find three-bedroom homes priced under **$1 million**, but often with smaller lots and closer neighbours.
Despite these challenges, **Melbourne** continues to be classified as a million-dollar city, with a median of **$983,000**. Buyers looking for more affordable options often venture to the city’s outer areas, where homes are available for lower prices, such as **$690,000** in the west and **$814,000** in the northeast.
While **Hobart** and **Darwin** remain the most affordable capitals, offering freestanding homes well under the **$1 million** mark, the overall trend in Australia indicates a significant shift in the housing market. As prices continue to rise, the dream of homeownership is becoming increasingly elusive for many.
