A blazing spring real estate market has propelled house prices upward by as much as $141,000 within a mere three months, adding 32 more Australian suburbs to the million-dollar list.

The freshly released Domain House Price Report highlights this striking increase in median property values, with numerous regions now firmly entrenched in the exclusive $1 million bracket.

New South Wales and Queensland boast the most new million-dollar suburbs, while Western Australia saw East Victoria Park join the ranks, with Carrum being Victoria’s sole new member.

Woody Point, located in Greater Brisbane, witnessed the most dramatic surge, with median house prices climbing by $141,250 from June to September.

According to Dr. Nicola Powell, Domain’s chief of research and economics, Australia’s capital city house prices are climbing at their fastest rate in nearly four years.

“This year’s trio of RBA rate cuts, coupled with growing consumer confidence, limited supply, and the highest auction clearance rates in over two years, are fueling the rise in house and unit prices across the nation’s capitals,” she explained.

‘With the Australian government’s five per cent Home Guarantee now underway, we expect this momentum to accelerate further into the final quarter of the year, supporting both houses and units as buyers chase better value in a competitive market.’

Nearly every capital city recorded gains across both property types – the broadest upswing in years – with only a slight fall in Canberra unit prices. 

Woody Point in Greater Brisbane experienced the most significant increase in median house prices in this list, rising by $141,250 between June and September

Prices in Sydney, Brisbane, Adelaide and Perth hit record highs, while Melbourne, Hobart, Canberra and Darwin reached their highest median prices in years.

Sydney is on track to surpass a $2million median by 2027.

Brisbane’s median house price jumped 3.7 per cent last quarter, an increase of $38,852, to a new high of $1.1million, overtaking Melbourne and Canberra to become Australia’s second-most expensive housing market for the first time. 

Adelaide has surged from the most affordable to the third-most expensive unit market in under four years, while Perth is now within $19,000 of the $1million median house price milestone. 

According to Cotality, one in three property markets across Australia now have a median value of $1million or more, up from 30 per cent this time last year.

Economist Kaytlin Ezzy said the million-dollar benchmark is losing some of its relevance as membership in the seven-figure club reaches record-highs.

She said many of the new entrants into the million-dollar club are located in suburban fringes – areas that haven’t typically been associated with prestige property historically. 

‘Five years ago, just 14 per cent of Australian suburbs were members of the million-dollar club, with the majority concentrated in Sydney’s prestigious Northern Beaches, Eastern Suburbs, and North Sydney and Hornsby regions,’ she said.

Crows Nest, on Sydney’s lower north shore, saw property prices rise by $97,500 to $1.015million

‘Today 41.9 per cent of house and 13.5 per cent of unit suburbs nationally claim a spot on the once prestigious million-dollar list, with seven-figure price tags becoming more commonplace.’

Ms Ezzy said just 15 per cent of suburbs in Sydney now have a median house value under the $1million mark, all located in the city’s western mortgage belt and Central Coast region. 

‘Some newly minted million-dollar markets include more mortgage belt suburbs like Sydney’s Penrith and Melbourne’s Taylors Lakes, along with Oxley in Brisbane’s Ipswich region and Upper Coomera in the Northern Gold Coast.’ 

Jan Jones Real Estate agent Rachele Jones said demand for properties in Greater Brisbane’s Woody Point has been growing steadily for some time.  

‘We have seen a lot of quality homes being renovated there, and also knock-downs and rebuilds,’ she said. 

‘There’s also a lot of development, with high-end units being built as well.’

Ms Jones lists the suburb’s beaches, festivals and easy commute to the city as its biggest drawcards.

‘You can walk to the local cafés, fish on the jetty, go to the Belvedere Hotel,’ she said.

The second-highest price increase was in Highland Park, Queensland, where the median house price climbed by $129,000.

Glass House Mountains, in south-east Queensland, saw median property prices rise to $1.055million

AMP economist Shane Oliver said the upswing in property prices is a clear indication RBA rate cuts are having an effect and are likely contributing to a rethink by the RBA in terms of how much rates need to fall. 

‘Some further gradual RBA rate cuts, real wages growth, the ongoing housing shortage and more support for first-home buyers from this month are expected to drive further gains in average prices,’ he said.

‘However, uncertainty about the timing and extent of further rate cuts following higher inflation data and the latest RBA meeting, rates remaining relatively high compared to the 2021 low, poor affordability and slowing population growth will act as constraints.’

Mr Oliver predicted home prices will rise around seven per cent this year, but likely pick up to around eight to ten per cent next year.