The Current Median House Price in Australia’s Capital Cities
- ozhousehunters
- Sep 14
- 4 min read
Australia’s property market has seen continued strength lately, especially in major cities. As of early September 2025:
Across the eight state & territory capital cities, the median house price is about AU$1,056,440.
Nationally, including regional areas, the median dwelling (i.e. house, unit etc.) price is somewhat lower.
So if you’re looking in a capital city, expect to pay around AU$1.05 to AU$1.06 million for a house — but there’s a lot of variation underneath that aggregate number.
Figures sourced from:
Breakdown by City & Variation
To put this median in context, here are some recent figures from selected capitals (house prices where possible):
Capital City | Approx. Median House Price* |
Sydney | ~ AU$1,521,600 |
Melbourne | ~ AU$956,300 |
Brisbane | ~ AU$1,040,650 |
Adelaide | ~ AU$906,620 |
Perth | ~ AU$881,867 |
Hobart | ~ AU$724,100 |
Canberra | ~ AU$1,008,300 |
Darwin | ~ AU$654,490 |
*These are approximate recent median values for houses in each capital, from late August / early September 2025. Yourmortgage.com.au
What’s Driving These Prices?
Several factors are contributing to these high median house prices and their recent movements:
Interest Rates Adjustments: Lowering interest rates by the Reserve Bank has helped increase borrowing capacity for buyers, which fuels demand.
Supply Constraints: Across many capitals, there is still constrained supply of well-located, affordable detached housing. New dwellings are being built, but often not fast enough to meet demand, especially in desirable suburbs.
Migration & Population Growth: Increasing migration (both internal and international) in some states is putting upward pressure on demand. More people translates into more demand for housing, especially in capitals.
Relative Affordability & Lifestyle Shifts: Some buyers are trading off distance, housing type etc., which shifts demand toward certain suburbs or toward units rather than large detached houses, but still houses remain a preferred choice in many cases—driving up prices where houses are still scarce.
Regional vs City Divergence: Regional areas remain cheaper on average, so the comparison between capital and non-capital markets highlights how much premium people are paying to live in or near capitals.
What This Means for Buyers & Sellers
Buyers: If you’re buying in a capital city, the AU$1.05-1.06 million median is a benchmark — many homes will cost more, depending heavily on suburb, size, and condition. Affordability is a big issue. For first home buyers or middle-income earners, securing finance, suitable location, or house size can be challenging.
Sellers: Those with homes in well-positioned suburbs are benefiting from strong demand. Even in cities where growth has been slower, there are signs of recovery and renewed upward movement in values.
Investors: With rising prices, the entry point for investment is higher. Also, yields (rent relative to purchase price) may be under pressure in expensive capitals. But cities with more affordability might offer better yield opportunities.
Risks & What to Watch
Interest Rate Changes: If interest rates were to rise or borrowing conditions tighten again, demand may pull back.
Cost Escalation: Construction costs, labour shortages etc., can slow supply, pushing prices up but also increasing development risk.
Policy Changes: Tax, zoning, land release and government housing policy (e.g. incentives, restrictions) can influence supply and demand significantly.
Affordability Pressure: As median prices rise, more people could get priced out, possibly shifting demand toward smaller dwellings, peripheral areas, or regional/rural living. That might change dynamics in suburbs or cities further out.
Final Thoughts
The Australian capital city median house price of ~AU$1,056,440 (as of late 2025) underscores how expensive property has become in major urban centres. But averages and medians only tell part of the story — the variation between capitals is large, and within cities the difference between suburbs, housing types, and lot sizes is significant.
For anyone wanting to buy, sell, or invest, it’s important to dig into locality-specific data, watch for changes in interest rates, supply pipelines, and policy. And for policymakers, ensuring enough affordable housing supply remains a major challenge.
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Published by
Nick Karayanis B.Eng. UNSW (Civil)
Licensed Contractor NSW (Building)
Disclaimer:
The content of this blog is for informational and educational purposes only and should not be considered professional financial, legal, or real estate advice. Every real estate transaction and renovation project is unique, and you should consult with qualified professionals, such as real estate agents, contractors, and legal advisors, to address your specific needs and circumstances. The information provided here is based on personal experiences and research and may not reflect current market conditions or regulations in your area. Readers assume all responsibility for decisions made based on the content of this blog.
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