Australian Housing Market Poised for 5% Growth in 2026

Every capital city recorded price increases in 2025, with Darwin leading at 18.9%, followed by Perth at 15.9%, and Brisbane at 14.5%. Sydney, while experiencing a more modest gain of 5.8%, remains the most expensive city, with a median value exceeding $1.28 million.

For first-time homebuyers, this upward trajectory presents both challenges and opportunities. On one hand, rising prices may make entry into the market more difficult. On the other hand, understanding market trends can aid in making informed decisions about when and where to buy.

Experts suggest that while affordability constraints and potential interest rate hikes could temper growth, the persistent demand-supply imbalance is likely to sustain price increases. Prospective buyers are encouraged to stay informed about market developments and consider seeking professional advice to navigate the evolving landscape.