National dwelling values rose 0.7% in December, the smallest monthly lift in five months, with Sydney and Melbourne down -0.1% each (the first month-on-month decline since January last year). Despite the late-year slowdown, 2025 delivered an 8.6% national gain, with regional markets (+9.7%) outperforming the capitals (+8.2%) over the calendar year.
| Capital City | Monthly Growth | Quarterly Growth | Annual Growth | Gross Yield | Median Value | Market Status |
|---|---|---|---|---|---|---|
| Sydney | -0.1% | +0.8% | +5.8% | 3.0% | $1,280,613 | Below Peak (-0.1%) |
| Melbourne | -0.1% | +0.8% | +4.8% | 3.6% | $827,117 | Below Peak (-0.9%) |
| Brisbane | +1.6% | +5.6% | +14.5% | 3.4% | $1,036,323 | Record High |
| Adelaide | +1.9% | +5.1% | +8.8% | 3.5% | $902,249 | Record High |
| Perth | +1.9% | +7.6% | +15.9% | 3.9% | $940,635 | Record High |
| Hobart | +0.9% | +3.6% | +6.8% | 4.3% | $720,341 | Below Peak (-5.4%) |
| Darwin | +1.6% | +5.4% | +18.9% | 6.2% | $586,912 | Record High |
| Canberra | +0.2% | +2.2% | +4.9% | 4.0% | $893,907 | Below Peak (-2.1%) |
| Regional Market | Monthly Growth | Quarterly Growth | Annual Growth | Gross Yield | Market Characteristics |
|---|---|---|---|---|---|
| Regional NSW | +0.7% | +3.0% | +7.4% | 4.1% | More resilient; slower but steady demand |
| Regional Victoria | +0.8% | +2.5% | +6.0% | 4.2% | Recovery phase; lifestyle and affordability draw |
| Regional Queensland | +1.2% | +4.0% | +12.6% | 4.2% | Strong mining + coastal demand; outperformance |
| Regional South Australia | +1.7% | +3.5% | +11.1% | 4.5% | Broad-based growth; affordability still supportive |
| Regional Western Australia | +1.9% | +5.8% | +16.1% | 5.5% | Top performer; tight supply in resource regions |
| Regional Tasmania | +1.7% | +3.7% | +6.7% | 4.5% | Moderating conditions; mixed local performance |
| Regional Northern Territory | n/a | n/a | n/a | 7.9% | Limited index coverage; yields remain highest |
Looking ahead to 2026, market conditions are expected to soften compared with 2025 as affordability pressures persist and interest-rate uncertainty remains elevated. A limited supply response should help buffer the downside, but outcomes are likely to remain segmented by price point and region.
Geographic Divergence Persists: Mid-sized capitals, particularly Perth and Brisbane, expected to maintain outperformance driven by supply constraints and interstate migration. Sydney and Melbourne growth constrained by affordability barriers, with lower price points seeing fastest gains.
Supply Constraints Continue: Labor shortages and ongoing competition from public infrastructure limiting new construction, with builder profit margins remaining compressed especially in multi-unit sector. Construction costs stabilized but not falling.
Policy Impacts Mixed: Government first home buyer incentives supporting demand at lower price points, though this may only temporarily boost ownership without addressing long-term affordability. APRA's DTI lending limits expected to have marginal impact on overall market.
Data sourced from Cotality Home Value Index December 2025 • This report provides general market information and should not be considered as financial advice