Australia’s housing market recovery is gaining momentum, with capital cities recording their fastest price gains since late 2021.

Domain’s latest House Price Report found combined capital city house prices recouped almost half of the value lost in the 2022 downturn over the June quarter.

House prices increased A$35,000 (or 3.4%), clawing back a large chunk of the A$60,000 (or -5.6%) lost during the housing downturn.

All capital cities saw house prices rise over the quarter, except Canberra, with Adelaide and Perth reaching record-high prices.

Sydney continues to lead the recovery and recorded the greatest acceleration in growth, recouping A$97,000 of the A$151,000 lost during the downturn.

Combined capital city unit prices also increased, lifting for the first time since late 2021 and posting the most substantial quarterly gain in two years. Since reaching a trough in March 2023, unit prices have clawed back A$16,000 of the A$34,000 lost - or roughly half.

Sydney, Melbourne, Brisbane and Adelaide unit prices all rose over the quarter, Darwin held steady, while Canberra, Perth and Hobart saw a decline.