Canberra’s housing market has reached a new milestone, with house prices climbing to a record high even as the unit market continues to decline, according to the latest report from Domain.

The March quarter data shows Canberra house prices rose 1.4 per cent – around $14,800 – to $1.084 million, marking the first new peak since mid-2022.

Despite the growth, the pace of gains has slowed, with broader economic conditions, borrowing constraints and affordability pressures weighing on buyer demand.

In contrast, Canberra’s unit market recorded the sharpest quarterly decline of any capital city. Prices fell 2.9 per cent – about $14,800 – to $489,304, the third consecutive quarterly drop.

Annual growth for units remains largely flat at 0.3 per cent, with prices still about six per cent below their peak in September 2023.

The gap between houses and units has widened significantly, with houses now 121 per cent more expensive than units – a record disparity for the capital.

Nationally, the report points to a shift in momentum across Australia’s largest markets, with both Sydney and Melbourne recording quarterly house price declines for the first time in years as affordability limits and tighter lending conditions begin to bite.

Meanwhile, Perth continues to outperform other capitals, maintaining strong price growth.