According to a report by Domain, the median prices for detached houses and apartments in major Australian cities are projected to reach new levels by the end of 2023. Sydney and Brisbane may even set new records for median prices.

The report notes that Adelaide and Perth have never seen prices this high, with both cities hitting new price records this quarter.

Sydney, leading the rebound in price increases at a faster pace, has become one of the cities where the price gap between property types has reached a record high. The prices of detached houses are twice that of apartments.

However, the report also highlights that the rise in mortgage interest rates has served as a barrier to further price growth. This suggests that while property prices have approached historic highs, the rate of growth may slow down slightly.

In recent years, the apartment market has demonstrated strong momentum. Melbourne has become the second most expensive city to buy apartments, with the apartment market witnessing its strongest growth in four years over the past six months. Analysts suggest that overseas migration may be contributing to this surge in demand.

Furthermore, Brisbane's apartment market has also shown a trend of price increases, narrowing the price gap between apartments and detached houses. However, the report points out that overall supply in Brisbane is insufficient, possibly due to tight rental markets, high real estate growth, and expensive construction costs.

Adelaide, on the other hand, has been one of the best-performing cities for both detached houses and apartments, bringing the fastest quarterly returns for homeowners. Intercontinental and international migration continue to drive the market's growth.