City Real Estate Prices Surge as Million-Dollar Club Expands

Australia’s real estate market is experiencing significant changes, with median house prices in key cities reaching new milestones. According to a report by Domain, Melbourne has seen a notable recovery, achieving its highest median house price in four years. This uptick comes amid a nationwide trend of rising property values.

Melbourne’s Market Strengthens

In 2025, Melbourne’s median house price increased by 7.4%, with an average rise of $31,614 during the December quarter. This brings the median house price in the city to $1,111,084. Analysts describe this as a sustained growth phase for Melbourne’s real estate.

National Trends

• Overall, national house prices have increased for twelve consecutive quarters.
• Prices rose by 3.9% in the December quarter alone, totaling a significant annual growth of 9.6%.
• Australia now has six capital cities with median house prices exceeding $1 million, including Perth, which joined this “million-dollar club” in 2025.

Perth Joins the Million-Dollar Club

Previously considered more affordable, Perth’s median house price has surged to over $1 million. This marks a remarkable turnaround for the city, which boasts a 18.4% annual increase in house prices. In comparison, Sydney continues to hold the title for the most expensive real estate market.

Growth Across Other Capital Cities

• Brisbane: Saw a 13.3% annual rise, with a median house price now at $1,171,237.
• Adelaide: Achieved a median price of $1,094,427, following an 11.9% annual increase.
• Darwin: Experienced the highest growth rate at 22.4%, lifting its median price to $690,896.

Sydney’s Modest Increases

Sydney’s median house price reached $1.76 million, reflecting a modest growth rate with a 2% increase in the last quarter. Nonetheless, experts predict that prices could top $2 million within the next few years.

Rental Market Dynamics

The rental market is also evolving, with some cities seeing flat prices while affordability continues to be a pressing issue. Despite slight price fluctuations, the rental sector remains competitive, particularly in major cities.

Future Projections

Industry analysts expect the trajectory of the housing market to shift with varying growth rates across cities. Sydney could face significant price jumps in the near future, fueled by ongoing demand and economic factors.

As Australia’s real estate landscape shifts, many cities are claiming their positions in the growing “million-dollar club.” The changing economic conditions and increasing demand across the spectrum suggest an evolving market that buyers and investors must navigate carefully.