domain-capital-house
The price gap is widening between units and houses. Image – Canva
  • The peak pace of growth has passed
  • House prices have increased about four times faster than units over 2021
  • In Sydney median house prices are now double the median unit prices

Median house prices across Australian capital cities have surpassed $1million, widening the chasm between unit and house prices even further according to a new Domain Report.

Although both house and unit prices have soared into new record highs, house prices increased three times faster than units over the past year in the combined capital cities.

Nicola Powell, Domain Chief of Research and Economics, explains that an array of factors are stimulating the ongoing price surges.

“House and unit prices continue to beat records nationally due to lockdown activity rebounds in Sydney, Melbourne and Canberra, high household savings and the ongoing demand from Australians to buy a property,” Dr Powell said.

Demand continues to outstrip supply across a majority of the cities however rapid price growth and affordability issues are likely to shift demand in 2022.”

Nicola Powell, Domain Chief of Research and Economics

Domain’s December 2021 Quarterly House Price Report suggests that the peak pace of growth has passed as dwelling price growth had lost momentum in the last quarter compared to earlier in the year.

Quarterly change of median house and unit price

Domain-price-house-dec
Source: Domain

Taking a closer look at the cities, all capitals bar Perth and Darwin have hit record high house prices.

New records were set for units in Sydney, Melbourne Brisbane and Adelaide.

In Sydney median house prices are now double the median unit prices.

“The rapid escalation in price is proving to be a significant financial barrier to entry for buyers and upgraders against a backdrop of low wage growth. Housing affordability will continue to weigh on demand throughout 2022,” Dr Powell said, commenting on the price growth in Sydney.

Stratified median house prices

Capital City Dec-21 Sep-21 Dec-20 QoQ YoY
Sydney $1,601,467 $1,511,122 $1,202,804
+6.0%
+33.1%
Melbourne $1,101,612 $1,040,863 $929,090
+5.8%
+18.6%
Brisbane $792,065 $715,342 $629,884
+10.7%
+25.7%
Adelaide $731,547 $673,852 $573,952
+8.6%
+27.5%
Canberra $1,178,364 $1,059,204 $862,340
+11.3%
+36.6%
Perth $612,348 $601,493 $569,883
+1.8%
+7.5%
Hobart $752,110 $691,743 $558,732
+8.7%
+34.6%
Darwin $645,487 $645,487 $496,132
0.0%
+30.1%
National $1,066,133 $1,001,222 $851,883
+6.5%
+25.2%
Source: Domain

Stratified median unit prices

Capital City Dec-21 Sep-21 Dec-20 QoQ YoY
Sydney $802,255 $795,131 $740,662
+0.9%
+8.3%
Melbourne $593,387 $571,310 $560,008
+3.9%
+6.0%
Brisbane $416,033 $407,986 $401,808
+2.0%
+3.5%
Adelaide $380,349 $363,868 $341,155
+4.5%
+11.5%
Canberra $555,644 $564,570 $506,662
1.6%
+9.7%
Perth $380,353 $373,039 $350,729
+2.0%
+8.4%
Hobart $561,513 $442,077
NaN%
NaN%
Darwin $326,159 $320,470 $293,505
+1.8%
+11.1%
National $621,880 $610,177 $577,563
+1.9%
+7.7%
Source: Domain


You May Also Like

Australian building costs have continued to soar, but has your insurance cover kept pace?

MCG Quantity Surveyors analysis found underinsurance could cost homeowners over $100K to replace a property, with the issue even more profound in the commercial property sector.

When will Australian property prices fall? One major challenge continues to prop prices up

Property prices are up by over 35% across the country since Covid, and while not the same story in each city, that’s little solace to prospective buyers pulling their hair out.

A window of opportunity could be open for savvy Australian property investors, but time is ticking

One expert has noticed investors are on the move while there’s less competition and fewer buyers in the marketplace.

Why Aussie property buyers aren’t waiting for rate cuts anymore

A surge in home loans shows buyers aren’t waiting for interest rates to drop before taking the plunge.

Top Articles

Australia’s best in real estate: 2024 PropertyGuru Awards highlight innovation and sustainability

Discover the winners of the 7th PropertyGuru Asia Property Awards (Australia).

Why apartments are the smart choice for property investors in 2024

Apartment markets in Australia are emerging as leading investment option.

Finding Australia's cheapest properties with huge investment potential

Hotspotting share the undervalued locations likely to boom.