For the first time, the typical house across Australia's capital cities has crossed the million-dollar mark, a threshold that carries weight well beyond the arithmetic of a monthly index. It arrived in February, only weeks after the Reserve Bank had nudged borrowing costs upward, a move that ordinarily cools the appetite for big purchases. Yet the market kept climbing in every capital, suggesting that for now the pull of scarce housing outweighs the cost of money. Whether this is a pause in a longer story or the start of its turn remains a question the coming months will answer.
Capital city house prices pass $1 million median for first time, defying RBA rate hike
Prices rose in every capital city during the month.
Mark
A million-dollar median for capital city houses. Why does this particular number matter?
Mimi
Partly it's symbolic, a round figure crossed for the first time. But it also happened in the same month the RBA's rate rise took the cash rate to 3.85 per cent, which is the surprising part.
Luke
Careful, though. The rise was 0.5 per cent for the month. One month doesn't tell us the hike has failed to bite. The rate rise came on February 3, so there may be a lag.
Mark
Which cities are driving it?
Mimi
Hobart led at 1 per cent, then Brisbane and Adelaide at 0.7 each. Brisbane is up $153,500 over the year to $1,046,000.
Luke
And Hobart's median is $718,000, far below the $1,004,000 national figure. Fast growth there comes off a lower base.
Mark
What's behind Hobart's surge?
Mimi
Creagh points to supply: stock on the market is down around 30 per cent over the year.
Luke
That's her explanation, and it's plausible, but the reporting offers it as one economist's reading rather than a tested cause.
Mark
And the buyers?
Mimi
Units are outperforming houses in most capitals, which suggests people are looking for more attainable options.
Luke
Worth noting this is PropTrack data. We don't know yet whether the next few months will hold the trend.
Der Puls
- The national median house price has crossed $1 million, a symbolic line that sharpens anxiety for first-home buyers.
- The Reserve Bank's 25-basis-point hike to 3.85% was meant to cool demand, but prices rose in every capital anyway.
- Hobart surged 1% in a single month as its stock on the market fell roughly 30% over the year.
- Regional markets are racing ahead at 10.5% annual growth, outpacing the capitals and pulling buyers outward.
- Buyers are turning toward units, which are outgrowing houses, while everyone waits to see whether higher rates finally bite.
For the first time, the typical house across Australia's capital cities has crossed the million-dollar mark, a threshold that carries weight well beyond the arithmetic of a monthly index. It arrived in February, only weeks after the Reserve Bank had nudged borrowing costs upward, a move that ordinarily cools the appetite for big purchases. Yet the market kept climbing in every capital, suggesting that for now the pull of scarce housing outweighs the cost of money. Whether this is a pause in a longer story or the start of its turn remains a question the coming months will answer.
In February, the median house price across Australia's capital cities crossed $1 million for the first time, reaching $1,004,000 after a 0.5 per cent rise. The milestone came only weeks after the Reserve Bank lifted the cash rate by 25 basis points to 3.85 per cent, returning borrowing costs to where they stood in July 2025. Rate rises are usually expected to weigh on prices, but February showed no such effect.
Every capital city recorded gains. Hobart led with a 1 per cent monthly rise to $718,000, while Brisbane and Adelaide each climbed 0.7 per cent. Sydney, still the most expensive capital at $1,255,000, rose 0.5 per cent, and Melbourne added 0.3 per cent. Over the year, Brisbane's median has jumped more than $153,000, and Adelaide's by nearly $119,000.
Beyond the capitals, regional prices are moving faster, up 10.5 per cent on a year earlier. REA's Eleanor Creagh described the national annual pace as the fastest since June 2022, and pointed to Hobart's shrinking supply, with listings down around 30 per cent, as a driver of its renewed momentum. Buyers are also shifting toward units, which are outpacing houses in most capitals.
The open question is whether the higher cash rate will eventually slow this momentum. For now, the February figures show prices still climbing across the country.
In February, the median price of a house across Australia's capital cities crossed $1 million for the first time. PropTrack, the property data arm tied to REA, put the figure at $1,004,000 after a 0.5 per cent rise for the month. The milestone came just weeks after the Reserve Bank raised interest rates.
The central bank lifted the cash rate by 25 basis points after its first meeting of 2026, held on February 3. That took the official rate to 3.85 per cent, which puts borrowing costs back where they stood in July 2025. A rate rise is normally expected to weigh on prices, but the February figures show no sign of that yet.
Prices rose in every capital city during the month. Hobart led, gaining a further 1 per cent to reach a median of $718,000. Brisbane and Adelaide each rose 0.7 per cent. Sydney was up 0.5 per cent and Melbourne 0.3 per cent.
The annual figures show how large the gains have been in some cities. Brisbane's median house value is now $1,046,000, up $153,500 over the year. Adelaide's has climbed $118,600 to $929,000. Sydney remains the most expensive of the capitals, with a median house now costing $1,255,000.
Regional Australia is moving even faster. Regional prices rose 0.6 per cent in February and are up 10.5 per cent on a year earlier. According to the data, regional growth has outpaced the capital cities over both the past year and the past five years.
REA senior economist Eleanor Creagh said the national increase is the fastest annual pace of growth since June 2022. She also singled out Hobart, saying the city has re-accelerated and recorded the strongest monthly gain in February. She tied that to supply, noting that total stock on the market there is down around 30 per cent over the past year.
There is also a shift in what buyers are choosing. Outside Hobart, unit price growth in the capitals is outpacing houses on both a quarterly and an annual basis, as buyers turn toward more attainable options.
What to watch next is whether the higher cash rate starts to cool the market. For now, the February numbers show prices still rising across all capitals despite the rate rise.
Bemerkenswerte Zitate
The national increase marks the fastest annual pace of growth since June 2022.— Eleanor Creagh, REA senior economist
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