Australia’s residential property market is now worth more than ever before.
Recent data from Cotality reveals that national dwelling values surged 1.1% in October, the fastest monthly growth since mid-2023. This has taken annual growth to around 6.1%.
Meanwhile, the total value of Australia’s housing stock has surpassed the $11 trillion mark, with the June quarter showing a value of approximately $11.6 trillion.
Across all eight major capital cities and their regional markets, median house prices are rising due to strong buyer demand, constrained listings, and policies that support homebuyers.
Increases by city & Region
All capital cities and many regional markets have posted recent gains.
- National dwelling values rose by 1.1% in October.
- Regional markets in Western Australia, Queensland, and New South Wales led the rise, with Regional WA up 1.8%, Regional QLD up 1.1%, and Regional NSW up 1.0%.
- The combined capital city median dwelling price is approximately $ 959,526. Combined regionals sit around 710,573 dollars.
- A record 34.1% of all Australian housing markets now have a median value of 1 million dollars or more, up from 30.3% a year ago.
One in three Australian housing markets now boasts a median value of $1 million.
Expert predictions for 2026
Looking ahead, most analysts expect the market to keep growing, although at a more balanced and moderate pace than in recent years.
House prices across the combined capitals are expected to rise by around 6% in the 2025-2026 financial year, with unit prices expected to increase by around 5%.
Forecasts suggest average Sydney house prices may reach approximately $1.83 million by June 2026, while Melbourne may reach around $1.11 million. Units are also expected to climb in multiple cities as buyers look for more cost-effective alternatives to freestanding homes.
While this year’s interest rate cuts may help improve borrowing capacity, affordability pressures mean growth is likely to be uneven across locations.
Regional areas with strong infrastructure, population growth and limited supply are likely to fare best in 2026, and some specialists are forecasting that markets where values are already at high levels without strong fundamentals may level out, especially if interest rates remain on hold.
Want a detailed breakdown of values and forecasts in your area, or insights into the best opportunities for 2026? Contact your local Professionals office today.
