Australian Property Market – Prices, Trends, Forecast [December 2025]

Sydney

• • Market Performance: November brought another month of growth for Sydney’s housing market, though momentum has clearly eased. Dwelling values increased 0.5%, contributing to quarterly growth of 1.8% and year-on-year gains of 5.1%. The median home value has now reached $1.27 million. The slowdown reflects worsening affordability and a lift in listings, which are only 2.2% below the five-year average.

• • Key Insight: The broader takeaway is that Sydney remains on an upward trajectory, just at a gentler pace. Affordability pressures and softer clearance rates are keeping monthly gains in check. Prices should continue trending higher into 2026, albeit gradually and within tighter borrowing limits.

Read More: Latest Property Market Update for Sydney

Melbourne

• • Market Performance: Melbourne recorded another month of measured growth in November, with dwelling values up 0.3% and quarterly gains reaching 1.6%. Stable supply levels and softer price pressures than those seen in the mid-sized capitals continue to support the market. The city’s median dwelling value has reached $823,495.

• • Key Insight: Overall, Melbourne remains a consistent performer with moderate, sustainable price growth. Buyer demand is strongest in the mid-price bracket, rental conditions are tightening, and relative affordability is underpinning activity. Values are likely to edge higher, though financial constraints will keep momentum contained.

Read More: Latest Property Market Update for Melbourne

Brisbane

• • Market Performance: Momentum stayed exceptionally strong in Brisbane through November, with dwelling values jumping 1.9% and quarterly growth hitting 5.5%. Annual gains have surged to 12.8%, highlighting just how tight and competitive the market remains. The median dwelling value has now reached $1.02 million.

• • Key Insight: The city remains a clear national leader, supported by persistent buyer demand and tight inventory. While record prices and construction constraints may temper the pace of gains, Brisbane’s trajectory into 2025 is underpinned by genuine demand and sustained market strength.
    

Read More: Latest Property Market Update for Brisbane

Adelaide

• • Market Performance: Adelaide posted another month of solid growth in November, with dwelling values up 1.9% and quarterly gains reaching 4.4%. The median value has climbed to around $891,000, placing the city in the upper mid-range of the capitals while still offering better affordability than the major east coast markets.
    

• • Key Insight: The market continues to build steadily, supported by consistent price gains, firm rental conditions and broad-based demand. Adelaide’s relative affordability and dependable performance are drawing interest from both local buyers and investors. Looking ahead, growth is likely to remain moderate as long as economic conditions remain stable.

Read More: Latest Property Market Update for Adelaide

Perth

• • Market Performance: Perth recorded the fastest growth of any capital in November, with dwelling values jumping 2.4% for the month and lifting quarterly gains to 7.4%. Annual growth has now reached 13.1%. The median value has climbed to around $914,000, setting a new peak after several years of sustained momentum.

• • Key Insight: Perth’s strength is evident across the board, with both houses and units rising sharply amid very limited supply and firm rental demand. Although affordability pressures and tighter credit conditions may gradually temper growth, the city is well-positioned to remain one of Australia’s most resilient markets as long as broader economic settings remain favourable.

Read More: Latest Property Market Update for Perth

Canberra

• • Market Performance: November delivered another month of steady progress for Canberra, with dwelling values up 1.0% and quarterly growth reaching 2.2%. Annual gains have lifted to 4.2%, and the median value, around $891,600, sits close to Adelaide’s and still just under the city’s earlier peak.

• • Key Insight: Canberra’s appeal lies in its stability: consistent capital gains, strengthening rental conditions and dependable yields. Although its growth pace trails faster-moving markets like Perth and Brisbane, the city continues to offer predictability and resilience. Provided interest rates and employment remain stable, Canberra’s growth trajectory should stay gradual and balanced.

Read More: Latest Property Market Update for Canberra

Hobart

• • Market Performance: Hobart continued its gentle recovery in November, with dwelling values rising 1.2% for the month and 4.7% over the year. The median value sits around $703,000, maintaining the city’s relative affordability. Prices remain below their 2022 peak, though a substantial portion of earlier losses has now been regained.

• • Key Insight: Hobart’s pace of growth is measured but consistent, underpinned by strong rental performance and healthy yields. It may no longer be a national frontrunner, but its combination of affordability and stable income makes it a balanced market. Provided broader conditions hold steady, this base is likely to support moderate price gains over the medium term.

Read More: Latest Property Market Update for Hobart

Darwin

• • Market Performance: Darwin maintained strong momentum in November, with dwelling values rising 1.9 percent for the month and 5.7 percent over the quarter. Annual growth has reached 17.0 percent, placing it among the fastest-growing capital city markets. The median value is about $578,900, which keeps the city relatively affordable while still recording rapid appreciation.

• • Key Insight: The market continues to deliver high growth and strong yields, supported by rising values and tight rental conditions. Both buyers and investors are taking advantage of the strong returns. Continued gains are likely, although performance will depend on wider economic settings and the natural volatility that comes with smaller, resource-focused markets.

Read More: Latest Property Market Update for Darwin

Australian Property Market Trends

This table highlights how dwelling values have changed across Australia over the past 5 years and since the first interest rate cut in February, showing which markets are still climbing and which ones have softened from their peak. It’s a helpful snapshot for understanding long-term growth and current momentum especially for identifying markets that are peaking and slowing.

Australian Property Market Forecast

The Australian banks forecast:

• • ANZ predicts a 5-6% increase in capital city property prices in 2024, with Brisbane expected to see the highest rise at 9-10%, Perth property values could go up by 1-11%, Sydney by 4-5%, and Melbourne prices by 2-3%.

• • CBA forecasts a 5% rise in capital city prices, with some variations: Brisbane is anticipated to grow by 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.

• • NAB projects a 5.4% average increase across the capitals, with Brisbane expected to see a 6.5% rise, Perth and Adelaide by 6.2%, Melbourne by 5.5%, Sydney by 5%, and Hobart remaining flat.

• • Westpac expects a 6% growth across the combined capitals, with Perth leading at 10%, followed by Brisbane at 8%, Sydney at 6%, Adelaide at 4%, and Melbourne at 3%

For the second half of 2024 this means:

• • Modest value increases expected: The national housing market is likely to see modest value increases through the end of 2024, driven by a persistent imbalance between supply and demand.

• • Affordability constraints: Affordability pressures, high interest rates, and cost-of-living challenges are expected to temper growth, especially in higher-priced markets.

• • Sustainability of growth: High growth levels in cities like Perth, Adelaide, and Brisbane may be difficult to sustain as affordability becomes more stretched.

• • Shift to affordable segments: Demand is increasingly focused on more affordable market segments, with significant growth in the lower quartile of the market.

• • Construction Sector Constraints: Ongoing issues in the construction sector, including labor shortages and competition from public infrastructure projects, are likely to keep supply constrained, supporting property values in the longer term.

Australian Property Clock Update

Each month, independent property valuation firm Herron Todd White (HTW) publishes a residential property report that assesses the performance of Australia’s 50 largest markets. HTW’s Property Clock grades each market based on current and predicted performance to determine whether it’s rising, falling, peaking or bottoming out.

Conclusion

Australia’s housing market is still rising, although the pace of growth is beginning to moderate as affordability and borrowing capacity tighten. Demand remains strong across many cities, with Perth and Brisbane leading national gains, while Sydney and Melbourne grow more slowly due to higher prices and softer clearance rates. Rental markets stay extremely tight, vacancy remains near record lows and investors continue to return despite yields easing.

Supply constraints remain a defining feature, with listings well below average in most capitals and new construction limited by labour shortages and elevated costs. At the same time, high debt-to-income limits and stretched serviceability are directing more buyers toward lower price points, reinforcing a clear divide between affordable and expensive markets. Government incentives for first-home buyers provide only temporary relief, while long-term affordability challenges persist.

Looking ahead, home values are expected to keep rising through 2026, although at a gentler pace. Tight supply and firm demand will continue to support prices, but worsening affordability and higher borrowing hurdles will place a natural ceiling on further growth. Overall, the market remains resilient, yet increasingly shaped by the balance between strong demand and the financial limits facing Australian households.