25/01/2026
Property Market Update
As of January 2026, the Australian property market has shown strong, widespread growth, with all capital cities increasing in value between late 2024 and late 2025. Driven by high demand, limited supply, and renewed investor activity, the market is shifting towards a phase of divergence, with capital cities like Darwin, Perth, and Brisbane leading the surge, and Melbourne showing a notable, steady recovery.
National Property Market Trends
Price Growth: Combined capital city house prices rose by 9.6%, while units increased by 6.8% in 2025.
Top Performers (2025): Darwin (+18.9%), Perth (+15.9%), and Brisbane (+14.5%) were the strongest capital cities.
Market Drivers: Persistent low supply, high population growth, and returning buyer confidence are driving competition despite stable interest rates.
Outlook: A “year of two halves” is predicted: a strong first half followed by a slower second half as affordability constraints increase.
Melbourne Property Market Update
Recovery Phase: After a slower 2024, Melbourne has experienced consecutive months of growth, with house prices in some areas hitting record highs.
Performance: Melbourne recorded a 4.8% growth in 2025 and is forecasted to see 5–10% growth in 2026.
Investor Activity: Yields have improved to become more competitive with other cities.
Suburban Growth: Areas like Frankston have experienced over 15% growth, showcasing the varied, high-performing nature of the market.