Capital city property prices defy RBA as median value soars

Australian capital city house prices surpassed a historic milestone in February, defying the RBA’s recent interest rate hike.

The latest PropTrack data shows capital city house prices rose 0.5 per cent in the month, surpassing a national mean price of $1m for the first time.

Home prices rose across every capital city in February, with the median price now at $1,004,000.

Leading the growth was Hobart, which rallied a further 1 per cent to $718,000, followed by Brisbane and Adelaide, which rose 0.7 per cent each.

Brisbane house prices are now up $153,500 for the year to a new median value of $1,046,000, while Adelaide prices appreciated $118,600 to $929,000.

Meanwhile, Sydney and Melbourne house prices rose 0.5 per cent and 0.3 per cent respectively, with the median home in Sydney now costing $1,255,000.

Regional prices climbed 0.6 per cent in February and were up 10.5 per cent year-on-year. Regional growth has outpaced the capitals over the past year and five years.

“The national increase marks the fastest annual pace of growth since June 2022,” REA senior economist Eleanor Creagh said.

“Notably, Hobart has re-accelerated, recording the strongest monthly gain in February with total stock on the market down around 30 per cent over the past year.”

Other than in Hobart, capital city unit growth is outperforming houses both quarterly and annually, as buyers pivot toward more attainable options.

The RBA lifted interest rates by 25 basis points following its first meeting of 2026 on February 3.

The official cash rate is now 3.85 per cent.

Interest rates are now back where they were in July 2025.