Million-dollar houses are now more common than homes costing less than seven figures in five of Australia’s capital cities.
Adelaide’s median house value passed $1m in March, even as unaffordable costs and high interest rates saw home prices grow at their slowest rate in two years and unit prices fall.
The city joined its east coast counterparts as its apartment values hit record highs, as did those in Sydney and Brisbane, new data from Domain shows.
But unit values fell across other cities to pull the national average down $3,000 from its December peak, while home prices rose just 0.7% over the quarter.
The heat came out of the market thanks to persistent high interest rates and poor affordability, according to Domain’s chief of research and economics, Dr Nicola Powell.
“While house prices are still rising nationally, the pace of growth has slowed to just one-third of what it was last year,” she said.
Brisbane’s two-year streak of house price growth came to an end, even as its apartment prices rose for a record-setting four years straight, leaving Adelaide and Sydney the only two cities to see prices rise in both house and unit markets.
Canberra saw values fall across the board and Melbourne properties were still about $50,000 below their peak price in 2021.
Australians have grown less confident about buying new homes amid the fallout from Donald Trump’s tariffs, though the pause in growth could be some buyers’ best chance, Powell said.
“It could be a window of opportunity for buyers, particularly with both major parties proposing new support for first home buyers ahead of the election,” Powell said.
The government and opposition are promising new measures to help renters buy homes, which economists have warned will fuel further price rises because new building remains stagnant.
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Labor’s housing minister, Clare O’Neil, and her Coalition counterpart, Michael Sukkar, said falling prices would hurt homeowners in a debate on Wednesday. Sukkar repeated Peter Dutton’s calls for “modest” rises outpaced by wage growth.
The RBA expects wages to rise 3.4% in 2025 while Domain has forecast house prices to rise by at least 4%.
The strongest growth is expected in Adelaide and Perth, which is on track to hit $1m median house values by the end of 2025 as price growth picks up, fuelled by forecast further falls in interest rates.
Separate data saw the market pick up steam after just one rate cut in February and analysts expect the RBA to cut rates at each of the next four board meetings after Trump’s tariff shock, which could boost house prices further.
