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House prices have reached a record high over the first quarter of the year, striking their steepest growth in almost 18 years, according to the latest Domain House Price report.
Across Australia, house prices increased by 5.7% on a quarterly basis to $899,509.
"This is the first time house prices have risen simultaneously for two consecutive quarters since 2009 post-GFC," said Nicola Powell, senior research analyst at Domain.
Unit prices also increased over the quarter to $584,340 — they are now sitting above their previous peak reached in mid-2017.
Among all capital cities, Sydney and Canberra reported the fastest quarterly increases for house prices in nearly three decades
"This is pushing affordability further out of reach for many but this rapid quarterly growth isn’t likely to continue," the report said.
Meanwhile, house and unit prices have reached a new record high. The median house price in the city is expected to surpass $1m over the next quarter.
"Increased demand has been led by owner-occupiers but investors have started to make a comeback and this could further fuel more price hikes in the coming quarters," the report said.
Powell said that for the quarter, price growth in capital cities have outperformed regional areas for the first time in a year and this could be attributed to several factors.
"Record low interest rates, improved household savings, low listing volumes, post-lockdown lifestyle changes, consumer sentiment roaring to an 11-year high, returning cashed-up expats and government incentives have fuelled demand for housing and a strong market performance," she said.
