Australia’s housing market strengthened again in February, with capital city home prices climbing to a record median of $1 million, according to the latest PropTrack Home Price Index, even after the Reserve Bank’s February rate increasebegan to further squeeze borrowing capacity.
The national median home value rose 0.5% over the month to $897,000, leaving prices 9.1% higher than a year ago and adding roughly $90,000 to the value of the typical home.
PropTrack senior economist Eleanor Creagh (pictured) said the acceleration in February reflects a typical post-holiday rebound in buyer activity.
“National home price growth picked up in February, consistent with the seasonal lift in housing market activity after the holidays. Prices lifted across every capital city, while nationally they are now 9.1% higher than a year ago. The national increase marks the fastest annual pace of growth since June 2022.”
Capital city markets surged to a new high, with prices up 0.5% in February, pushing the combined capitals median above $1 million for the first time. Hobart was the standout performer over the month, up 1%, followed by Brisbane and Adelaide, both rising 0.7%. Perth remains the fastest-growing capital over the year, with values surging 19.5%, ahead of Darwin, Brisbane, and Adelaide.
Regional markets also remained resilient. PropTrack reported regional prices climbed 0.6% in February and are 10.5% higher year-on-year, continuing to outpace the capitals over both one- and five-year horizons as buyers chase relative affordability and lifestyle.
Creagh noted that tight supply is underpinning values in many cities.
“The strongest conditions remain concentrated in markets where buyer demand is facing into tight supply, particularly Perth, Darwin, Brisbane, and Adelaide,” she said, adding that unit prices are increasingly outpacing houses as buyers pivot to more attainable options.
Insights from Ray White’s latest data echo the strength of the upswing, especially for detached homes.
“National house prices are now 14% higher than a year ago. This is the strongest annual growth rate recorded since June 2022, when the market was coming off the peak of the pandemic housing boom,” said Nerida Conisbee (pictured right), Ray White Group chief economist.
While growth in Sydney and Melbourne has flattened month-on-month, Ray White notes there is no evidence of broad-based price declines.
“What February shows is not a downturn, but a moderation in speed,” Conisbee said.
Both reports point to an Australian housing market still supported by tight listings, strong population growth, and constrained new supply, even as higher interest rates begin to temper momentum in more expensive, rate-sensitive segments.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
