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.