Apartment prices could finally start climbing with three big cities in Australia now having typical prices in the seven figures.
Across Australia, property prices in the year to November surged by 22.2, the fastest annual pace since early 1989 despite tighter new lending rules coming into effect, new CoreLogic data showed.
In some cities, house prices have soared at double the speed of apartments but affordability issues could change that.
In Sydney, median house prices rose by an even more dramatic annual pace of 30.4 per cent to $1,360,543.
Apartment prices could finally start climbing with three big cities in Australia now having typical prices in the seven figures. Capital city apartment values have risen by 12.6 per cent over the year to $634,846 (pictured is a one bedroom unit at Meadowbank in Sydney's north for $650,000
Canberra, now Australia's second most expensive capital city market, has a mid-point house price of $999,755 - just $245 below the psychological $1million mark following an annual increase of 27.2 per cent.
Melbourne's median hose price edged up by 19.5 per cent over the year to $986,992.
CoreLogic research director Tim Lawless said young buyers who couldn't afford a house were likely to gravitate towards a unit, as prices record continued to be set for homes with a backyard.
'With higher barriers to entry, especially for new home buyers who don't have the benefit of accrued equity behind them, it's likely housing demand will be progressively impacted as fewer households can afford to buy,' he said.
'A natural consequence of worsening affordability could see demand increase for more affordable higher density housing options such as townhomes and units.'
Apartments are still expensive in Sydney with a median price of $837,169.
In Sydney, median house prices rose by an even more dramatic annual pace of 30.4 per cent to $1,360,543 (pictured is a house at Ryde in Sydney's north on the market for $2.4million)
But the 15.2 per cent annual increase was only half that of houses.
