Australian Property Market – Prices, Trends, Forecast [February 2026]

Sydney

• Market Performance: Sydney’s housing market has begun 2026 steadily, with tight supply supporting prices despite stretched affordability and buyers staying selective.
• Key Insights: Despite affordability pressures, price growth continues at a restrained pace, supported by tight supply and tempered demand, pointing to a resilient market defined by budgets, location quality, and pricing discipline.

Read More: Latest Property Market Update for Sydney

Melbourne

• Market Performance: Melbourne’s housing market is showing a steady, modest recovery, prices are edging up and annual conditions remain positive, but affordability pressures and tight supply are keeping growth slower than in many other capitals.
• Key Insights: With supply tight and annual price gains back, Melbourne is progressing slowly; affordability ceilings and caution restrain the pace, so well-priced, well-located homes can still draw rivals.

Read More: Latest Property Market Update for Melbourne

Brisbane

• Market Performance: Brisbane remains a top-performing Australian housing market, with values near cycle highs and strong annual growth driven by solid buyer demand against limited listings, though momentum is easing and sensitivity to affordability and borrowing costs is rising.
• Key Insights: Supported by limited listings and widespread demand, Brisbane is still posting strong housing outcomes, led by areas offering relative value, while indicators point to slower momentum rather than a downturn.

Read More: Latest Property Market Update for Brisbane

Adelaide

• Market Performance: Adelaide’s residential market remains resilient and near peak values, with upward price pressure supported by relative affordability and tight supply, even as higher rates and cost pressures modestly cool buyer capacity.
• Key Insights: With growth easing from recent highs, Adelaide is moving into gentler conditions where gains may be slower and more selective, while the risk of a sharp correction appears limited.

Read More: Latest Property Market Update for Adelaide

Perth

• Market Performance: Perth has started 2026 as one of Australia’s strongest housing markets, driven by tight supply and resilient demand, with prices holding near record highs even as momentum cools and headwinds build.
• Key Insights: Calmer growth is likely ahead for Perth as affordability and borrowing constraints bite, but tight listings and supportive rentals should underpin prices, favouring steadier gains over broad declines.

Read More: Latest Property Market Update for Perth

Canberra

• Market Performance: Canberra’s housing market is kicking off 2026 with steady, measured growth, supported by tight supply, resilient demand, and stable jobs.
• Key Insights: With prices still just under the previous peak, Canberra is seeing steady, modest and uneven growth, supported by low supply and stable employment, while higher rates and tighter credit limit momentum.

Read More: Latest Property Market Update for Canberra

Hobart

• Market Performance: Hobart’s housing market is trending upward into early 2026, with limited listings and steady demand supporting gradual price growth and improving sentiment despite affordability pressures.
• Key Insights: Steady gains and tight rentals define Hobart right now, marked by moderate price growth, a recovery still unfolding, and persistent competition concentrated in the most affordable segments.

Read More: Latest Property Market Update for Hobart

Darwin

• Market Performance: Darwin’s housing market has kicked off 2026 strongly, combining solid price growth with attractive rental returns and tight supply that’s helping sustain demand.
• Key Insights: Affordable entry and limited supply are buoying Darwin in 2026, alongside strong recent value gains and a rental market that keeps delivering standout income returns.

Read More: Latest Property Market Update for Darwin

Australian Property Market Trends

Here are the key takeaways from the latest value trends across capitals and regions, showing long-term growth, recent momentum, and where each market sits in the cycle.

• Most markets are back at peak levels. Brisbane, Adelaide, Perth and Darwin are listed as “at peak”, along with most regional areas, plus the combined capitals, combined regionals and national totals.
• A few areas are still below their previous highs. Sydney (-0.1%), Melbourne (-0.7%), Canberra (-1.8%) and Hobart (-5.1%) are under peak, as are Regional Vic (-0.6%) and Regional NT (-9.1%).
• Over five years, growth has been strongest in WA, Perth and Brisbane. Perth (+89.2%) and Regional WA (+89.1%) lead, with Brisbane close behind (+87.2%). Adelaide (+79.0%) and several regional markets (e.g., Regional SA +78.1%, Regional Qld +77.1%) have also seen large rises.
• The five-year story is mixed elsewhere. Sydney is up +35.0% over five years, Darwin +36.7%, while Melbourne is notably lower at +14.9%. Regional NT is the only area down over five years (-2.1%).
• Since February 2025, momentum is highest in Darwin and Perth. Darwin is up +19.2% since Feb 2025, Perth +18.5%, and Regional WA +16.6%. Brisbane has risen +15.3% over the same period.
• Recent growth has been weakest in Regional NT. It’s up just +0.3% since Feb 2025, compared with +8.8% for combined capitals, +9.7% for combined regionals, and +9.0% nationally.

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 recording broad-based gains, but the pace is uneven between cities and price points. National dwelling values rose 0.8% over the latest month, with stronger momentum in several mid-sized capitals while Sydney and Melbourne remain closer to flat.

Supply remains the key constraint. Advertised stock is 19% below this time last year and well under typical levels, which continues to support prices even as affordability bites.

Looking ahead, the balance is likely to be softer and patchier growth rather than a sharp turn. Buyers and sellers should expect local conditions to matter more, with outcomes driven by relative affordability, listing volumes, and borrowing capacity.