At the start of 2026, new trends have emerged in the Australian housing market. While Sydney and Melbourne maintained relatively stable prices, mid-sized capitals continued to record solid growth. Perth led the way with a 2.3% increase in February, equivalent to a $22,500 rise in the median home price. Prices also climbed by more than 1% in Brisbane, Adelaide, and Hobart.
On the other hand, Sydney and Melbourne recorded slight price declines over the past three months due to the impact of high interest rates and weaker demand. This reflects a clear slowdown that could extend to other regions if current conditions persist.
Mid-sized capitals are benefiting significantly from the tight housing supply. Property listings in Perth are down 48% compared to the five-year average. In Brisbane, listings are 31% lower, and in Adelaide, they are down 23%. Although housing stock in Sydney and Melbourne is also below average, the decline is more modest at 1% and 4.3%, respectively.
In February, new property listings rose noticeably. Sydney recorded a 9.7% increase in new listings, while Melbourne saw a 12% rise. Sellers appear increasingly motivated to adjust to weaker demand and lower clearance rates, particularly with the Easter season approaching.
Major cities such as Sydney have shown a mixed pattern. Prices for lower-priced homes increased by 0.8%, while the top-tier segment declined by 0.9%. Competition is intensifying for more affordable homes, driven by first-home buyers, investors, and repeat buyers, whereas higher-end properties are facing tighter credit conditions.
Regional areas, meanwhile, are recording growth rates similar to or even higher than major cities. This is supported by relatively lower prices and increased internal migration, which has strengthened housing demand outside the major metropolitan centers.
