With Australia's median property value set to hit a new peak by the end of 2023, what does that mean for where you live? 

Since prices bottomed out in January, national values have increased faster than the rate of inflation.

CoreLogic research director Tim Lawless said while home values were still 1.3 per cent below the record reached in April last year, a new national record could be reached by the end of November. He noted:

  • Dwelling values have already reached new record highs in Perth and Adelaide
  • Brisbane looks set to reach a new record high in October, with home values currently only 0.6 per cent below their previous peak
  • Hobart and Canberra have the furthest to go before staging a nominal recovery

Here's how Australian house and unit prices are looking in each capital city for September.

Adelaide

Monthly change: 1.7 per cent increase

Adelaide median house value: $742,909

Median unit value: $464,414

The September quarter saw Adelaide recording the highest capital gain at 4.3 per cent, pipping out Brisbane and Perth.

Adelaide house prices are now up 6.3 per cent from their trough in March this year.

Brisbane

Monthly change: 1.3 per cent increase 

Brisbane median house value: $848,680

Median unit value: $539,169

According to Mr Lawless, Brisbane looks set to reach a new record high in October, with home values currently only 0.6 per cent below their previous peak.

Homes in most of the Sunshine State are now more expensive than they were 12 months ago — with the exception of the Sunshine Coast and neighbouring Noosa.

Canberra

Monthly change: 0.2 per cent increase

Canberra median house value: $956,600

Median unit value: $591,952

Darwin

Monthly change: 0.1 per cent increase 

Darwin median house value: $579,142

Median unit value: $382,116

Are property prices expected to keep rising?

Looking ahead, interest rates are near their peak, and population growth is rebounding strongly.

Together with low levels of supply, PRD chief economist Diaswati Mardiasmo believes property prices will increase further.

"Dwelling supply, especially for houses, has dwindled significantly," Dr Mardiasmo said.

"The number of loans issued for the construction or purchase of new homes are at their lowest since the GFC in 2008. This means that the supply of new houses is very little, and unless people are happy to switch from buying a house to an apartment, the competition for houses will continue to increase, and thus their prices. 

"We also have plenty of international investors coming back to the market. They have seen how resilient our property prices were throughout COVID and the 12 cash rate hikes."

Dr Mardiasmo also said the RBA's decision to extend its rate pause will add to buyer confidence.

"People are feeling more confident with their financial situation as stable rates means there is less turbulence in monthly mortgage repayments, which allows them to plan their household budgets with more certainty," she said.

"This often leads to more people entering the market. And as we know, when demand is high and supply is low, home prices often rise."

While house prices will most likely accelerate, she believes the immediate rocket-like increase we saw during the pandemic will not eventuate.