Australia’s housing market continued to grow in March 2026, but the momentum is becoming more uneven across the country.

According to Cotality’s National Home Value Index, national home values rose 0.7% in March and increased 2.1% in the first quarter of 2026. While this shows that the market is still moving upward, growth has slowed compared to the 2.8% increase recorded in the final quarter of 2025.

Perth Becomes Australia’s Strongest Property Market

Perth was Australia’s strongest performer, with home values rising 2.5% in March and 7.3% over the quarter. This added about $69,000 to the median dwelling value.

The main driver is limited housing supply, with listings still well below historical averages. Regional Western Australia also showed strong gains, including areas such as Bunbury.

Sydney and Melbourne Show Softer Conditions

Sydney and Melbourne recorded softer conditions as more housing supply, lower auction clearance rates and better buyer choice reduced market urgency.

This shows that Australia’s property market is no longer moving evenly. Local supply and demand now matter more than overall national growth.

Buyers Are Becoming More Selective

There are also early signs that purchasing activity is beginning to slow. Transaction volumes are trending below last year and below the five-year average.

Cost-of-living pressure, interest rate uncertainty and global economic concerns may continue to affect buyer sentiment. However, markets with strong population demand and limited supply, such as Perth, remain better positioned than areas with higher available stock.

Outlook

Looking ahead, Australia’s property market is expected to remain positive but more selective.

Perth is likely to stay one of the strongest markets due to tight supply and steady demand, while Sydney and Melbourne may continue to grow at a slower pace. For investors, the key is choosing markets with strong fundamentals rather than following national trends alone.

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.