National home prices have spiked to a fresh record, with capital city medians breaking through the $1 million barrier for the first time, according to the REA Group’s PropTrack Home Price Index released today.
The report shows national home prices rose 0.5% in February, pushing the median home value to $897,000, which is up 9.1% over the past year.
That equates to an annual increase of $89,500, or roughly $90,000, added to the value of the typical Australian home.
Capital cities also recorded a 0.5% monthly lift, taking the combined median to $1,004,000 — the first time the capital city benchmark has moved beyond the $1 million mark.
Hobart led the monthly gains, rising 1%, followed by Adelaide and Brisbane (both up 0.7%), Perth (0.6%), and Sydney and Darwin (both 0.5%). Melbourne (0.3%) and Canberra (0.2%) posted softer but still positive growth.
On an annual basis, Perth remains the standout performer, with prices up 19.5% year-on-year. Darwin (+16.2%), Brisbane (+15.9%) and Adelaide (+14.8%) also recorded strong double-digit growth.
Across regional Australia, prices climbed 0.6% in February and were up 10.5% year-on-year. Regional markets have now outpaced the capitals over both the past year (10.5% compared to 8.6%) and the past five years (59% versus 41%), underpinned by relative affordability and lifestyle appeal.
REA Group Senior Economist and report author Eleanor Creagh said the February result reflected renewed momentum following the summer lull.
“National home price growth picked up in February, consistent with the seasonal lift in housing market activity after the holidays. Prices lifted across every capital city, while nationally they are now 9.1% higher than a year ago. The national increase marks the fastest annual pace of growth since June 2022.”
She said tight supply continued to drive competition in key markets.
“The strongest conditions remain concentrated in markets where buyer demand is facing into tight supply, particularly Perth, Darwin, Brisbane and Adelaide.
“Notably, Hobart has reaccelerated, recording the strongest monthly gain in February with total stock on market down around 30% over the past year. In each of these capitals, except Hobart, unit growth is outperforming houses both quarterly and annually as buyers pivot toward more attainable options.”
The report also highlights a shift in momentum between property types.
While annual growth for houses and units remains broadly similar across the capitals, units have outpaced houses over the past quarter, suggesting buyers are gravitating toward more affordable stock as borrowing capacity remains constrained.
Looking ahead, Ms Creagh warned that interest rate pressures may temper the pace of gains, even as demand remains supported by strong fundamentals.
“The Reserve Bank’s February rate rise will weigh on borrowing capacity at the margin, but tight labour market conditions, population inflows, investor activity and the expanded Home Guarantee Scheme have reinforced demand, with limited new housing supply providing a floor under prices.
“These factors point to further price gains. Though, the period ahead is likely to see slower and more uneven growth as affordability constraints and future rate rises slow growth throughout 2026.”
Key findings from the report:
- National home prices rose to a new high in February, lifting 0.5% over the month.
- Annually, this pushed home prices up 9.1%, with the median home value sitting at $897,000.
- This represents year-on-year growth of $89,500.
- Capital cities also recorded an increase of 0.5%, pushing the median value over the $1million market for the first time.
- Hobart (+1%) recorded the strongest gain in the month, followed by Adelaide (+0.7%), Brisbane (+0.7%), Perth (+0.6%), Sydney (+0.5%) and Darwin (+0.5).
- Melbourne (+0.3%) and Canberra (+0.2%) recorded softer growth comparatively, though prices still increased.
- Perth remains the top performing markets nationally on an annual basis, with prices up 19.5% year-on-year.
