Australian Property Market Report

Key Market Insights

Australian dwelling values rose 0.9% in February, extending the growth run that began mid-2025 and lifting the national index 9.8% over the year. The uplift was led again by the mid-sized capitals where listings remain critically tight: Perth (+1.9%) and Brisbane (+1.4%) delivered outsized gains, while the large eastern seaboard cities firmed modestly as buyers adjusted to a higher-rate environment. Advertised stock remains 22% below the five-year average, particularly across the more affordable price points, keeping competition elevated despite soft consumer confidence.

Australia (Monthly)

+0.9%

Combined Capitals (Monthly)

+0.8%

Combined Regionals (Monthly)

+1.1%

Rental Yield Combined Capitals

3.5%

Australia (Annual)

+9.8%

Combined Capitals (Annual)

+9.3%

Combined Regionals (Annual)

+11.2%

Rental Yield Combined Regionals

4.3%

Capital Cities Performance

Capital City	Monthly Growth	Quarterly Growth	Annual Growth	Gross Yield	Median Value	Market Status
Sydney	0.4%	0.7%	7.1%	3.0%	$1,305,400	0.8% below peak
Melbourne	0.3%	0.5%	5.9%	3.6%	$835,100	0.5% below peak
Brisbane	1.4%	4.9%	16.2%	3.5%	$1,070,200	Record High
Adelaide	1.1%	4.4%	10.3%	3.6%	$924,600	Record High
Perth	1.9%	6.5%	19.2%	3.9%	$978,400	Record High
Hobart	0.6%	2.9%	7.4%	4.3%	$728,100	4.6% below peak
Darwin	1.3%	4.7%	18.8%	6.1%	$608,900	Record High
Canberra	0.5%	1.8%	6.1%	4.2%	$892,700	1.2% below peak

Regional Markets Performance

Regional Market	Monthly Growth	Quarterly Growth	Annual Growth	Gross Yield	Market Characteristics
Regional NSW	0.9%	3.1%	8.4%	4.1%	Listings 17% below average; coastal markets attracting hybrid workers despite affordability pressures.
Regional Victoria	0.8%	2.7%	7.6%	4.3%	Uptrend broadens to Geelong and Bendigo; values remain 0.4% below record highs.
Regional Queensland	1.2%	3.9%	13.4%	4.2%	Gold Coast, Sunshine Coast and inland resource hubs report multiple-offer campaigns.
Regional SA	2.0%	5.2%	12.4%	4.5%	Mount Gambier and Barossa supply remain critically tight; affordability draws investors.
Regional WA	2.2%	6.6%	17.9%	5.5%	Strong mining-linked jobs and acute rental shortages keep price momentum elevated.
Regional Tasmania	1.1%	4.5%	7.2%	4.4%	Hobart satellites and the East Coast are benefitting from interstate demand for lifestyle assets.
Regional NT	n/a	n/a	n/a	8.0%	Sample size too small for monthly reporting; volatility elevated but yields remain nation-leading.

Regional Market Insights

Resource-backed markets in WA and regional Queensland recorded the steepest monthly gains as rental scarcity pushes investors further up the risk curve.

Sea-change communities across NSW and Victoria continue to absorb inner-city demand overflow, though price discovery remains patchy for premium stock.

South Australian regions are attracting first-home buyers who are priced out of Adelaide's middle ring, supporting double-digit annual growth.

Tasmanian demand is stabilising with interstate migration improving; vacancy rates remain near record lows for Hobart-fringe locations.

Monthly Growth by Capital City (February 2026)

Perth
1.9%

Brisbane
1.4%

Darwin
1.3%

Adelaide
1.1%

Hobart
0.6%

Canberra
0.5%

Sydney
0.4%

Melbourne
0.3%

Listings vs Investor Loan Lodgements

National listings (vs 5yr avg) -22%

Investor finance approvals (YoY) +11%

First-home buyer share 19%

Average days on market 31 days

Vendor discounting -3.8%

Market Intelligence

Growth Drivers

Limited stock rotation: New listings trailed last year by 14%, keeping auction clearance rates in the mid-70s for Adelaide, Brisbane and Perth.

Migration tailwind: Net overseas migration slowed slightly but remains above the 10-year average, sustaining rental demand and supporting investor activity.

Resilient labour market: Unemployment held at 4.3%; strong employment absorbs higher mortgage repayments and reduces distressed supply.

Market Challenges

Affordability ceiling: Price-to-income ratios in Sydney and Brisbane continue to climb, limiting depth of buyer pools above $1.5m.

Fixed-rate cliff: Roughly $19b in fixed loans will reprice in Q2, which could lean on discretionary spending and listings later in the year.

Policy uncertainty: Macroprudential commentary around debt-to-income caps is resurfacing as investor lending accelerates.

Rental Market Trends

Vacancy tension: National vacancy sat at 1.6%; Brisbane and Perth remain near 1.1% while Melbourne tightened to 1.8% as overseas students returned.

Rental growth: The rental index rose 0.7% in February and 5.8% over the year, with unit rents up 8.1% as tenants shift toward more affordable stock.

Yield compression: Rapid capital growth kept gross yields flat at 3.5% across the capitals despite higher rents; investors are targeting regions with 4.5%+ yields.

Market Outlook

Autumn selling season: Early listing indicators point to a 5–7% lift in fresh stock through March, which should provide more choice but is unlikely to rebalance conditions.

Interest-rate expectations: Futures markets have pushed out the first RBA rate cut to November 2026, implying a prolonged plateau that keeps borrowing power constrained.

Opportunities: Value pockets remain across Melbourne's outer north, Newcastle/Lake Macquarie and Toowoomba where price growth trails the national average.

Economic Pulse Check

Inflation eased to 3.5% YoY, adding confidence that rate hikes are done even if cuts are distant.

Household savings ratio stabilised at 3.0%, indicating households are adapting to higher repayments rather than sharply reducing housing demand.

Construction pipeline remains light; dwelling approvals sit 12% below decade averages, signalling ongoing supply-side support for established property values.