As if it’s not bad enough that Australia’s unemployment rate hit its highest in four years, Australia’s house prices are rising at their fastest rate in four years, with gains in all capital cities according to the Domain House Price Report for September.
Brisbane, for the first time, is the second most expensive city in Australia, surpassing Canberra, with a median house price of $1.1 million.
Sydney median house prices are at a record high, with a jaw-dropping $1.75 million.
Domain chief of research and economics, Dr Nicola Powell, predicts it will reach $2 million by 2027.
Melbourne reached its highest levels in 3.5 years, with a median of $1.083 million, while Canberra and Hobart house prices have hit their highest levels since 2022.
As for Perth, data show it’s on track to reach a median house price of $1 million.
Then there’s Adelaide, where house prices continue to grow, jumping over $30,000 in the September quarter to $1.049 million.
Darwin house prices recorded the strongest quarterly gain across all capital cities with a 5.3 per cent boost. Median house prices are now at their highest in almost a decade at $656,858.
Speaking to The Guardian, buyer’s agent Lauren Jones said a key factor in the rapidly increasing prices was the federal government’s expansion of the First Home Guarantee, which increased the price caps in the city from $750,000 to $1 million, taking effect on October 1, 2025.
Jones said that since the government’s announcement of the First Home Guarantee, “we were getting calls every other day for people wanting to get in before 1 October.”
Since the scheme took effect, prices have continued to rise.
“They’re seeing that they’ll miss out on a property, and then the next one that comes along in a few weeks’ time, they’re having to pay an extra $10, $20, or $30,000 for it,” Jones said to The Guardian.
Dr Powell also noted the rate cuts from the Reserve Bank this year, which have improved buyer confidence and owners waiting to sell for higher prices, as well as the limited supply of homes for sale, contributing to the rapid increase.
And it gets worse… according to NAB, two in three Australians expect prices to rise further in the coming year, with a predicted increase of between $50,000 and $100,000.
The steep increase in property prices also comes at a time when unemployment is rising, and job adverts are declining, which only makes the possibility of home ownership even more difficult.
At this point, I may just splurge on a holiday or some nights out, as buying a house feels out of the question.
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