Rate cuts ignite national property price surge | Domain House Price Report

Key takeaways

Sydney’s median house price jumped 2.6% in the June quarter– the city’s strongest quarterly lift in two years – reaching a record $1.7 million.

Melbourne surged 2.3% to hit $1.064 million over the quarter, marking a three-year high. The recovery now sets the stage for a return to record prices by mid-2026.

Brisbane, Adelaide and Perth also posted new highs, though growth has moderated compared to the double-digit percentage rises of recent years. Perth remains just $45,314 shy of the $1 million club.

National unit prices rebounded with the strongest quarterly growth in two years, climbing to a new high of $689,588, with record prices in Sydney, Brisbane, Adelaide and Perth.

Brisbane is experiencing its longest-ever run of unit price growth, while Adelaide has clocked up nine consecutive quarters of rising gains.

Darwin and Canberra led quarterly growth for units. Darwin prices soared 5.6% to $388,169, reaching an eight-year peak, while Canberra gained 4.6% to $610,752, its strongest result in nearly two years.

If you want to understand what's happening in our housing markets around Australia, Domain has just released its latest house price report. 

The report revealed that Australia’s housing upswing has broadened.

After a patchy 2024, every capital posted quarterly gains for both houses and units – for the first time in four years and two years, respectively – pushing combined‑capital medians to new highs.

The catalyst has been a rebound in demand as the Reserve Bank of Australia (RBA) commenced an interest rate easing cycle.

Improved borrowing capacity, up approximately 5% from the start of the year, has met still-tight listing volumes, reigniting competition and lifting prices, particularly in the east-coast capitals, where population growth remains strong.

With markets now expecting another cut (August is the month to watch), it would likely spur more buyers – and push prices higher – just ahead of the spring selling season.

Here's a summary of the Domain report, and below are all the details you'll need to know.

Key report highlights:

• Sydney’s median house price jumped 2.6% in the June quarter – the city’s strongest quarterly lift in two years – reaching a record $1.7 million.
• Melbourne surged 2.3% over the June quarter to hit $1.064 million, marking a three-year high. The recovery now sets the stage for a return to record prices by mid-2026.
• Brisbane, Adelaide and Perth also posted new highs, though growth has moderated compared to the double-digit percentage rises of recent years. Perth remains just $45,314 shy of the $1 million club.
• National unit prices rebounded with the strongest quarterly growth in two years, climbing to a new high of $689,588, with record prices in Sydney, Brisbane, Adelaide and Perth.
• Brisbane is experiencing its longest-ever run of unit price growth, while Adelaide has clocked up nine consecutive quarters of rising gains.
• Darwin and Canberra led quarterly growth for units. Darwin prices soared 5.6% to $388,169, reaching an eight-year peak, while Canberra gained 4.6% to $610,752, its strongest result in nearly two years.

National overview

Domain reports that Australia’s property market is roaring back to life, with all eight capital cities posting simultaneous house price growth for the first time in four years.

Domain's Chief of Research and Economics, Dr Nicola Powell, said:

“The housing market continues to outperform expectations, despite cost-of-living concerns and economic uncertainty.

But the road ahead may be uneven. Next month’s RBA decision will be one to watch – another rate cut could expand borrowing capacity, though regulators may tread carefully if investor activity accelerates.

Supply remains the key wildcard. We’re still not building at a fast enough rate to meet population growth. Without a substantial boost in new housing, price pressures will remain, regardless of further rate cuts.”

Domain forecasts that the market is poised for a more uneven trajectory.

An RBA rate cut later this year would provide another boost to affordability.

Still, regulators remain alert to re-acceleration risks and may lean on macro-prudential tools if investor credit growth re-ignites.

Supply is the swing factor: national dwelling completions are projected to stay well below the annual pace needed to meet population growth, suggesting that, without a meaningful rise in new construction, price pressure – especially for well‑located homes – will persist in FY26 even as growth rates diverge by city and dwelling type.

The current median house price and changes

Source: Domain June Quarter House Price Report

The current median unit price and changes

About Brett Warren Brett Warren is National Director of Metropole Properties and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their wealth through strategic property advice.