Home prices grew nationally at 0.6 per cent in July, marking six consecutive months of increases that have driven median dwelling prices to $927,000 in the capital cities and $689,000 in the regions, property data firm Cotality has found.
This increase aligns with the Reserve Bank's first rate cut in February and with more on the horizon, prices are only expected to accelerate.
"Demand is on the rise once again and it's clear that's largely induced by recent rate cuts and expectations of further rate cuts this year," Cotality's head of research Eliza Owen told AAP.
"It's coming at a time when supply is relatively constrained - both from a construction perspective, but also from a listings perspective - with far more people looking to buy themselves."
Darwin has led the charge with home prices growing 2.2 per cent compared to Perth at 0.9 per cent, Brisbane and Adelaide at 0.7 per cent, Sydney at 0.6 per cent and Melbourne at 0.4 per cent.
This is one of the first times since the 2010s that price rises in the Top End capital have led the market, as Darwin catches up to its counterparts in other states and territories.
"Darwin is the last capital city where investors might see stronger growth rate, a relatively low purchase price across houses and units - and rate cuts have helped kick the market into gear," Ms Owen said.
Houses have outpaced units in price growth across Australia, rising by 1.9 per cent compared with 1.4 per cent for the latter.
Australian Bureau of Statistics data on Thursday revealed the number of approved dwellings rose to 11.9 per cent in June, driven largely by units and apartments.
But Ms Owen says there is less demand for this kind of stock.
Comparatively stronger property value growth for houses, alongside highly publicised building defects such as Mascot Towers in Sydney have made homebuyers more hesitant to purchase units.
There remains little reprieve for renters with signs of price re-acceleration.
Vacancy rates have held close to historical lows and house rents have grown 3.6 per cent in the year to July, up from 3.3 per cent in the 12 months to June.
6°C