Australia's National Median House Price Just Hit $1 Million

A Milestone Nobody’s Celebrating

Australia’s national median house price has officially crossed the $1 million threshold. It’s a record that underscores just how far housing affordability has stretched, even as interest rates sit at elevated levels.

The figure comes from the latest auction market data for the week ending 8 March 2026, which highlighted that ongoing demand and limited housing supply continue to push prices higher across most of the country.

Meanwhile, the national median dwelling value (which includes both houses and units) sits at $922,838 after rising 0.8% in February and 9.9% over the past year.

The Two-Speed Market

Not all cities are experiencing the same growth. Australia’s property market in 2026 is clearly running at two speeds.

The fast lane: Perth and Brisbane. These mid-sized capitals continue to record growth above 1% per month. Brisbane’s median house value now sits at approximately $1.15 million after surging more than 14% during 2025. Perth has also posted double-digit annual gains.

The slow lane: Sydney and Melbourne. Values in Australia’s two largest cities have flatlined. Sydney faces the prospect of price falls if the expected rate hikes materialise, with variable mortgage rates potentially reaching 6.25%. Melbourne has underperformed for several years and remains the most affordable major east coast capital for buyers.

What’s Keeping Prices Up?

Three structural factors continue to support house prices despite higher rates.

Supply shortage. Australia simply isn’t building enough homes. Population growth, construction delays and rising building costs mean the gap between housing demand and supply keeps widening.

Strong demand from upgraders. While first home buyers are increasingly priced out of standalone houses, upgraders with existing equity continue to drive activity in the $800,000 to $1.5 million range.

Rental market pressure. With vacancy rates at historic lows in most capitals, many renters are looking to buy to escape rising rents, adding competition at the lower end of the market.

What This Means for Different Buyers

First home buyers are being pushed towards units, apartments and regional areas. Government schemes like the First Home Guarantee can help, but the deposit barrier on a $1 million house ($200,000 for a standard 20% deposit) is formidable.

Investors need to be selective. The cities posting the strongest capital growth (Perth, Brisbane) may be closer to their peak, while Melbourne and Sydney could offer better value entry points if prices soften under rate pressure.

Upgraders in a strong equity position may benefit from acting before potential rate hikes push borrowing capacity lower. But overstretching in a rising rate environment carries real risk.

Where to From Here?

Domain forecasts record housing prices across all capital cities by the end of 2026, but expects the year to play out in two phases. The first half may see softer conditions as rate hikes bite, while the second half could see renewed growth if rates stabilise or begin to ease.

The wildcard is the Middle East conflict. If oil prices remain elevated, further rate hikes could stall property markets more aggressively, particularly in Sydney where affordability is most stretched.

Get the Right Advice

Whether you’re buying your first home, investing, or thinking about selling, getting professional advice matters more than ever in a $1 million market. Find a financial adviser on WealthWorks who understands property strategy and can help you make smart decisions in a complex market.