Australia’s property market maintaining strength
Australia’s property market maintaining strength
Cotality Home Value Index surged 8.6% higher in 2025, adding approximately $71,400 to the national median dwelling value.
This marks the strongest calendar year gain in home values since 2021, when the market rose a stunning 24.5% amid emergency low interest rates and record-high levels of purchasing activity.
December saw the smallest monthly increase in five months (0.7%), with Sydney and Melbourne posting slight declines, signalling a softer start to 2026 as rate hike fears and affordability pressures weigh on confidence.
Outlook for 2026 - modest and uneven growth expected: The report forecasts a less optimistic housing outlook for 2026 due to inflation risks, higher interest rates, and stretched affordability.
Affordability pressures are shifting demand downmarket as buyers are pushed toward the lower and middle price points.
Regional markets outperformed capitals, with combined regional dwelling values rising 9.7% over the year, outpacing the 8.2% growth in capital cities.
Source: Cotality