The median price for a house in Australia has reached a record high of almost $1 million, according to a new report.

Domain’s House Price Report revealed the national median house price is now $994,579, having risen by 3.5 per cent over the September quarter.

The national median price for units also rose to $609.642.

Australia’s annual price growth rate also made history, with the 21.9 per cent rate becoming the fastest annual rate of growth on record.

In the September quarter, all capital cities, except Perth and Darwin, saw new record house prices.

Sydney, Melbourne and Adelaide also reached record prices for units.

Despite the historical growth, quarterly growth is beginning to ease, indicating some relief for buyers.

“We’re seeing the property market begin to cool down with soaring house prices in the last year adding to ongoing affordability pressures affecting buyers participation in the market,” Domain Chief of Research and Economics Dr Nicola Powell said.

“As COVID-19 lockdowns and restrictions come to an end and the sustained high prices appeal to vendors, sellers are beginning to re-engage with the market, increasing supply which in turn offer greater choices for buyers”.

State of the capitals

Over the last year, house prices in Sydney grew by about $6,700 a week, the fastest annual rate of growth on record at 30.4 per cent, according to Domain.

The median price for a house in Sydney is now a record $1.499 million, with units hitting a new high of $802,475.

“With significant disparity and gap between house and unit prices, Sydneysiders are seeing greater value in units due to house price affordability constraints, as well as rising investor activity supporting increased buyer demand and rising unit prices in the last quarter,” Powell said.

Despite being in lockdown for most of the last quarter, Melbourne also hit new records, with the median house price rising to $1.038 million.

In Brisbane, buyer demand was strong with the number of homes sold reaching its highest point in six years.

The median price for a house also hit a new record high of $702,455.

“Queensland has been the main state to benefit from the flow of Australians that have sought to either escape lockdown or embrace the remote working culture,” Powell said.

“This new found flexibility has allowed some to relocate elsewhere and maintain their current career trajectory and earning power.

“Brisbane’s offer of relative affordability compared to other major capital cities, the lifestyle, climate and winning the 2032 Olympic bid all provide key reasons for increased internal migration and investment activity.”