House prices climb for ninth straight quarter

The report showed that the median house price across combined capital cities now stands at $1,178,668, reflecting a 4.9 per cent increase compared to March 2024.

In regional areas, house prices experienced a larger uptick over the March quarter, with a 2.4 per cent increase to $659,460, representing a 7.9 per cent year-on-year rise.

In comparison, for the first time since 2023, unit prices across the capital cities have declined by 0.4 per cent to a median price of $670,205.

Despite the quarterly decline, units in combined capital cities have experienced a 3.2 per cent growth over the last 12 months.

In regional areas, similar to houses, unit prices continue to grow, with a 0.8 per cent increase over the quarter and a 5.3 per cent yearly growth of $507,135.

Domain’s chief of research and economics, Dr Nicola Powell, said the data showed the slowest annual gain in nearly two years for houses and 1.5 years for units, with quarterly gains halving compared to the previous quarter.

“While house prices are still rising nationally, the pace of growth has slowed to just one-third of what it was last year,” Dr Powell said.

“Several factors are behind the slowdown – interest rate cuts are expected to be gradual, affordability remains a major barrier, and lending conditions are still tight.

“On top of that, global uncertainty, including from the Trump administration’s economic and foreign policy stance, could influence the RBA’s next moves,” she said.

Adelaide joins the million-dollar club

For the first time, Adelaide joined Sydney, Melbourne, Canberra, and Brisbane in the million-dollar club over the March quarter, with a 1.1 per cent increase or $11,100, reaching a median price of $1,000,202.

Domain’s data showed that despite consistent gains over the past five years, Adelaide’s growth plummeted, marking the lowest quarterly increase in two years.

Similarly, the South Australian capital’s annual gains have lost momentum, recording their lowest growth rate in 15 months at 12.1 per cent or $107,800.

Sydney and Melbourne recover

While most capitals are seeing a slowdown in price gains, Sydney and Melbourne defy the trend with 1.7 per cent and 0.3 per cent growth, respectively.

This quarter, Sydney house prices grew almost twice as fast as the previous quarter, marking the most substantial gain in nearly a year.

House prices in Sydney have now reached $1,691,731, just $8,000 short of the $1.7 million mark, solidifying the city as the most expensive in the country.

Despite experiencing growth, annual capital gain in Sydney has dropped to its lowest in the past 24 months, recording an annual 4 per cent increase or $65,200.

In Victoria, Melbourne has shown signs of recovery, with house prices rising for the second consecutive quarter for the first time in a year, easing the decline in annual growth.

Over the March quarter, house prices in Melbourne increased by $3,400 to reach a median of $1.036 million.

Even after the strongest six-month run in over a year, house prices in the capital city are still down by $57,200 or -5.2 per cent from their December 2021 peak, with Domain stating that a full recovery is still out of reach.

Perth and Hobart slow down

Perth continued to see house price increases, although the pace has moderated, with a 0.1 per cent increase or $500 over the March quarter, reaching a median of $917,706

Despite the slowdown, the growth marked the 10th consecutive quarterly rise, with the city recording a 14.1 per cent or $113,500 annual increase, the highest among the capitals.

According to Domain, Perth is on track to join the million-dollar club by the end of 2025.

Similarly, the pace has been slowing down in Hobart, with house prices holding steady in the March quarter after a positive growth in the last six months.

Hobart’s capital house gains have risen by 2.6 per cent over the last 12 months to $710,077, representing a $52,400 loss or a 6.9 per cent decline from the March 2022 peak.

Brisbane and Canberra decline

For the first time in more than two years, Brisbane house prices dipped in the March quarter, snapping the city’s longest growth streak in 17 years.

Brisbane house prices edged down by $3,300 or -0.3 per cent to a median of $1.022 million.

Similarly, annual growth has also cooled, slipping to an 18-month low of 8.7 per cent.

Canberra house prices fell for the third quarter, down by 1.3 per cent or $13,500, marking the weakest stretch since mid-2022.

The city median house price has dropped to a 15-month low of -10.6 per cent, sitting $124,000 below the June 2022 peak, with Domain flagging Canberra as the furthest city from recovery among the capitals.