Australia’s housing market finished 2025 on a high, with both house and unit prices hitting new records across the capital cities, according to Domain’s December Quarter House Price Report.
House prices have now risen for 12 consecutive quarters nationally, the longest uninterrupted growth cycle since 2012–2015.
While price growth has eased in parts of the country, all capital cities recorded gains over the December quarter, highlighting the market’s continued strength.
“The housing market is clearly in an upswing, but the pace of growth is no longer one-speed,” said Domain’s Chief of Research and Economics, Dr Nicola Powell.
Melbourne was one of the key stories of the quarter, recording a new record house price for the first time in four years.
Median house values rose 2.9 per cent to $1.11 million, confirming the city’s recovery after a prolonged period of weaker conditions.
Sydney house prices also reached a new peak, rising 2 per cent over the quarter to $1.76 million, though momentum has slowed.
In contrast, unit prices recorded their strongest quarterly increase in two and a half years, as buyers increasingly turned to apartments in response to affordability pressures.
Brisbane continued its steady run, with unit prices once again outperforming houses, while Adelaide saw house prices regain the lead over units.
Canberra remained the only capital to record a quarterly fall in unit values despite house prices reaching a two-year high.
Perth was the standout of the quarter, becoming Australia’s sixth “million-dollar city” after house prices surged past the $1 million mark, a shift that has reshaped the national housing leaderboard.
“While prices are still pushing higher and new milestones are being reached, affordability pressures are increasingly dictating where buyers can compete and which markets are moving fastest,” Dr Powell said.
She added that momentum continues to be supported by “improved borrowing capacity following the three interest rate cuts delivered in 2025, alongside tight housing supply, a resilient labour market and solid wage growth”.
