Australia’s housing market has entered 2026 with a clear split in performance across cities. While Sydney and Melbourne have begun to stabilise, mid-sized capitals continue to record solid growth, with several markets achieving more than 1% month-on-month increases. Perth Perth is leading the nation, with home values rising 2.3% in February alone, adding significant value to the median dwelling in just one month. Brisbane, Adelaide and Hobart also posted strong gains, reinforcing the growing strength of these markets as demand shifts beyond the traditional major cities. Sydney and Melbourne In contrast, Sydney and Melbourne were more sensitive to February’s rate hike and softer buyer sentiment. Property values in both cities remained flat over the month and showed slight declines over the rolling quarter, reflecting a more cautious market environment. A key factor supporting growth in the smaller capitals is limited housing supply. Perth listings remain significantly below historical averages, while Brisbane and Adelaide are also experiencing notable undersupply. Although stock levels in Sydney and Melbourne are still relatively tight, both cities have seen an increase in new listings, which may signal rising vendor activity amid softer conditions. At the same time, the more affordable end of the market continues to show resilience nationwide. In Sydney, lower-priced homes recorded modest growth, while higher-end properties declined. Ongoing demand from first-home buyers and investors, combined with tighter borrowing capacity at higher price points, continues to support entry-level segments. Overall, Australia’s property market is becoming more selective in 2026. For investors and homeowners, markets like Perth are presenting compelling opportunities, driven by strong growth, affordability, and supply constraints. As Australia’s property market shifts, opportunities are becoming more location-driven than ever. Whether you are exploring high-growth markets like Perth or reassessing your strategy in major cities, now is the time to make informed decisions. Connect with our team at sales@iqiwa.com.au to discover where the real opportunities are and take your next step with confidence. Download to see insights form other country marketsDownload

Australian home values continued their upward trend in January, rising 0.8% nationwide, according to Cotality’s Home Value Index. This marks a modest acceleration from December’s 0.6% increase and highlights the market’s resilience despite affordability pressures. All capital cities and regional markets recorded price growth during the month. However, results were mixed acrosst the major capitals. Sydney (+0.2%) and Melbourne (+0.1%) posted only modest gains, following slight declines in December. Both cities remain just below their peak values, with Sydney sitting 0.1% below its November 2025 high and Melbourne 0.7% below its March 2022 peak. Mid-sized capitals continue to lead the market, though momentum is easing. Perth recorded the strongest growth at 2.0%, followed by Brisbane (+1.6%) and Adelaide (+1.2%), all slightly slower than their late-2025 peaks. Cotality’s Research Director, Tim Lawless, noted that price growth remains supported by severely limited housing supply, with listings 19% lower than a year ago and 25% below the five-year average, while buyer demand remains above average. However, he expects market momentum to soften through 2026 as affordability constraints, cost-of-living pressures, potential interest rate increases and slower population growth begin to weigh on demand. At the same time, growth is being driven largely by lower-priced homes, particularly houses. Across the combined capitals, lower-quartile house values rose 1.3% in January, compared with just 0.3% growth in the upper quartile, reflecting intense competition among first home buyers, investors and value-focused buyers. Overall, the market remains resilient, but signs are emerging that the pace of growth may gradually moderate as economic pressures build. For investors and homeowners alike, Perth’s property market presents exciting opportunities. Whether you’re considering selling, buying, or investing, now is the time to explore your options. Contact our team at sales@iqiwa.com.au to discuss your property goals today. Download to see insights from other country marketsDownload

Australia’s housing market delivered solid gains in 2025, with national home values rising 8.6%, adding around $71,400 to the median dwelling price, the strongest annual growth since 2021. All capital cities and regional markets recorded increases, led by Darwin (+18.9%), while Melbourne saw the smallest rise at 4.8%.However, momentum began to cool in December, when the national Home Value Index recorded its smallestmonthly gain in five months (+0.7%). Sydney and Melbourne both declined by -0.1%, marking the first monthly fall in over a year. Cotality’s research director Tim Lawless attributes this softening to renewed concerns that interest rates may remain “higher for longer”, along with worsening affordability and cost-of-living pressures. Growth has increasingly been driven by the lower and middle segments of the market, as affordability pressures continue to steer buyers away from higher-priced homes. Upper-quartile values rose just 0.2% in December, compared with 1.1% growth in the more affordable segments. Regional markets remain more resilient, posting 9.7% growth for the year, outperforming the combine capitals at 8.2%. Western Australia’s regions (+16.1%) and regional Queensland (+12.6%) were the standout performers. Outlook for 2026 While 2025 closed strongly, the outlook for 2026 is more cautious. Uncertainty around inflation, interest rates, affordability and household debt is expected to weigh on confidence. That said, ongoing housing supply shortages should help prevent any significant downturn in home values. For investors and homeowners alike, Perth’s property market presents exciting opportunities. Whether you’reconsidering selling, buying, or investing, now is the time to explore your options. Contact our team atsales@iqiwa.com.au to discuss your property goals today. Download to see insights from other country marketsDownload