Australia’s property markets have entered 2026 with a mix of resilience, tight supply, and steady – though uneven – growth across the states, according to the latest PIPA National Market Update.
This report pulls together insights and analysis from market experts and PIPA members from the latest edition of the PIPA Adviser e-magazine’s national market update.
PIPA Chair Cate Bakos said the market insights reveal a national market shaped by low stock, strong migration, and shifting affordability – conditions that continue to support prices even as economic settings evolve.
“In New South Wales, buyer demand remains firm despite affordability pressures, with Sydney values now just 0.1 per cent below the record peak observed in November 2025,” Ms Bakos said.
“Victoria is experiencing a more varied landscape, where strong competition for family homes contrasts with softer conditions in the prestige and inner-city apartment sectors.
“Queensland continues to surge, fuelled by intense buyer competition and government incentives, with Brisbane homes often selling within one week of the first open home.”
Western Australia remains the nation’s standout performer, driven by extreme undersupply and rapid population growth, with annual price gains of around 22 per cent, Ms Bakos said.
“South Australia is also building momentum, supported by election-driven housing incentives and consistent buyer confidence,” she said.
“Tasmania shows signs of a measured recovery after earlier corrections, underpinned by tightening listings and strong regional demand.
“Meanwhile, the ACT continues its long-established pattern of steady, stable growth, with detached homes outperforming units and supply remaining constrained.”
NEW SOUTH WALES
By Rich Harvey, CEO, Propertybuyer.com.au
“The NSW property market has entered 2026 with steady buyer engagement and a measured outlook. Low stock levels and ongoing demand are shaping price movements, while auction activity and rental conditions indicate a market gradually adjusting to current economic conditions.
“Sydney dwelling values increased slightly by 0.2 per cent over the quarter to February 2026. On an annual basis, values have risen 6.4 per cent, with a monthly increase of 0.2 per cent. Values are now just 0.1 per cent below the record peak observed in November 2025, indicating that high-demand areas continue to perform strongly.
“But, as always, medians mask the massive variations across the city. Recently a penthouse at Darling Point sold for $40 million off plan while Penrith’s median house price has just cracked $1.1 million, Narrabeen at $3.33 million, Cronulla $3.33 million and Paramatta $1.68 million.
“Sydney’s preliminary auction clearance rate is 65.5 per cent, while combined capitals have averaged 68.9 per cent for the same period. The long-term average remains at 64 per cent, showing that current clearance rates are above historical norms.
“Vendors are showing a willingness to adjust pricing to achieve sales, reflecting moderate but consistent market activity. We are seeing fewer active bidders at auctions, but generally there are sufficient buyer numbers to see it sold close to reserve price.
“New listings in Sydney are up 6.8 per cent compared to last year, although total listings remain 22.9 per cent below the five-year average. This tight supply is supporting price stability, even as market sentiment adjusts to broader economic conditions.
“The median vendor discount currently sits at -3.0 per cent, with properties taking a median of 29 days to sell. This indicates that while some buyers remain cautious, well-presented properties in desirable locations are still achieving near-asking prices. I have noticed some softening in some markets with agents chasing us up to confirm offers.
“The RBA cash rate has increased from 3.60 per cent to 3.85 per cent, contributing to slightly higher borrowing costs. While this is weighing on affordability for some buyers, demand for well-located and in-demand properties has remained resilient.
“Sydney’s rental market continues to be tight. Annual rent growth is 5.8 per cent, gross rental yields are three per cent, and vacancy rates remain low at 1.5 per cent.
“Limited rental stock is sustaining competition among tenants and supporting investor interest in the market.
“Looking ahead, affordability and potential for more interest rate rises remain headwinds, but the NSW property market is likely to see steady, if modest, growth through 2026.
“Limited supply and consistent buyer interest are expected to support values, particularly in well-established and high-demand areas. Auction activity is likely to remain firm, while low vacancy rates and ongoing rental demand will continue to underpin the broader housing market.”
VICTORIA
Antony Bucello, Director, National Property Buyers
“The Melbourne property market has shown mixed but resilient performance, marked by solid auction clearance rates, uneven suburb-level price growth, and ongoing shifts in rental dynamics in 2026.
“Auction activity remains robust, reflective of steady buyer engagement despite broader economic pressures, although signs of a slight cooling have emerged. Consistent auction clearance rate performance suggests that buyers are still prepared to compete at auctions, especially in desirable middle-ring and established suburbs.
“According to national market data, Melbourne’s median house prices continued to rise modestly in early 2026, contributing to the broader trend of capital city price growth.
“In February, Melbourne’s median house price increased by about 0.3 per cent, even as interest rates were lifted marginally by the Reserve Bank. However, price performance varies significantly by suburb and asset type.
“Demand remains very strong for well-located family homes in the middle ring suburbs around the $1.5 million mark, and for houses under $1 million in outer-ring suburbs close to key amenities.
“Townhouses and villa units with a good parcel of land and good floorplans are also performing well. First-home buyers using government incentive schemes are driving strong competition in the $600,000 to $800,00 price range.
“By contrast, the prestige market is feeling the impact of tighter borrowing capacity, while one-bedroom apartments in the inner city have also shown limited price growth.
“There is also a degree of uncertainty in the market as international and national economic factors continue to evolve. With the Federal Budget approaching, speculation around potential changes to capital gains tax and negative gearing has resurfaced – something I have witnessed before every budget announcement in my
20-plus years as a buyers’ agent.
“We will just have to wait until the May announcement, but if changes are brought in, they are unlikely to significantly affect existing investors with only one property – who make up roughly two-thirds of residential investors, according to PropTrack.
“On the rental front, yields remain varied across Melbourne. Inner-city apartments are typically delivering yields around five per cent, while suburban family homes are closer to 3.5 per cent. Rental vacancy rates remain relatively stable and currently sit at around 2.4 per cent, according to the REIV.
“Despite solid overall performance this quarter, the market is far from uniform, and some short-term volatility may emerge as broader economic conditions continue to play out. However, Melbourne’s property market retains strong long-term fundamentals, including steady population growth and significant infrastructure investment.”
QUEENSLAND
Fern Walcott, Buyers Agent & QPIA, Exclusive Property Buyers
“Queensland markets have seen a strong start to 2026, with demand continuing to outpace supply. Government first home-buyer incentives are fuelling competition in lower-priced segments, with investors and first-time buyers competing. The February rate increase has not appeared to soften buyer demand.
“If you’re driving around Brisbane on a Saturday, you may notice buyers lined up down the street, waiting to attend open homes. Well-presented family homes and townhouses are selling above asking price, driven by the depth of the buyer pool.
“Brisbane dwelling values are currently at an all-time high, with a median value over
$1,080,000, according to Cotality. Values rose by 1.6 per cent for the month of January and by 5.1 per cent over the quarter.
“Regional Queensland markets have performed well, with Bundaberg and Toowoomba recording the highest growth over the last quarter at 5.4 per cent and
5.7 per cent respectively. There’s an increasing number of Brisbane suburbs that were once considered affordable, now surpassing 50 years to own, based on average loan repayments to income levels.
“Queensland’s rental market remains tight, with vacancy rates sitting at one per cent, according to REIQs Residential Vacancy Rate Report December 2025. Rents rose for the year to January 2026 by 6.4 per cent in Brisbane and 6.5 per cent in regional Queensland, according to Cotality. For context, over the past five years, rents have increased two and a half times more than wages.
“Low stock levels continue to support further price growth. Total sales listings are down compared to this time last year – Brisbane down by 25.9 per cent and regional Queensland down by 17.9 per cent – with Maryborough total listings down by 28.9 per cent.
“Interestingly, sales volumes are down by only 3.7 per cent in Brisbane and 6.2 per cent in regional Queensland indicating properties aren’t spending long on the market.
“Brisbane properties are typically receiving multiple offers and selling within one week of the first open home. Brisbane average days on market was 21 days in January 2026, compared to 22 days in January 2025, according to Cotality. Regional Queensland average days on market was 30 days for January 2026, and 26 days for January 2025.
“First time buyers wanting to enter the market are feeling the pressure of strong competition. Buyers are making unconditional offers, at times with very little due diligence completed.
“The Queensland Seller’s Disclosure regime has helped to improve transparency; however, this doesn’t remove the need for buyers to conduct their own due diligence. Risks related to flood, bushfire, or illegal building works, are not disclosed in the new Form 2. Buyers need to be prepared to move quickly, without skipping any important steps to remain competitive and well informed.
“Queensland markets are expected to see continued price growth in 2026, driven by increased buyer confidence, government incentives and supply constraints, which don’t appear to be easing soon.”
WESTERN AUSTRALIA
Laura Kolomyjec, Property Specialist & QPIA, Dynamic Advisory
“The Perth property market continues to outperform expectations, and quite frankly, it’s not by accident. What we’re seeing right now is the result of a perfect storm – tight supply, strong population growth, and a WA economy that continues to hold its own.
“Recent data from Cotality shows Perth is still leading the country when it comes to price growth. Dwelling values rose around 2.3 per cent in February alone, contributing to a 6.8 per cent increase over the past three months, with annual growth now sitting at approximately 22 per cent. To put that into perspective, the broader Australian market recorded annual growth of 9.9 per cent, highlighting just how strong Perth’s performance has been.
“Units are also having their moment. Data from Cotality shows unit values have been growing at an even faster pace than houses in recent months, a clear sign that affordability constraints are pushing more buyers to diversify their options.
But if there’s one story driving the Perth market right now, it’s supply, or more accurately, the lack of it.
“While some may point to a slight slowdown in activity, Cotality data shows that advertised stock levels remain extremely low, with listings in Perth sitting around 48 per cent below the five-year average. On the surface, that might suggest a softer market, but that’s not the full picture. What it really tells us is demand hasn’t disappeared; it’s just competing for what little stock is available.
“That level of undersupply is exactly what continues to put upward pressure on prices. And when you zoom out, the broader fundamentals support this trend. Western Australia is currently the fastest-growing state in the country, driven by both interstate migration and overseas arrivals, according to the Australian Bureau of Statistics.
“People are being drawn here for good reason. Lifestyle, employment opportunities, and it is still relatively affordable compared to the eastern states. But with more people comes more pressure on housing, and right now, supply simply isn’t keeping up.
“The rental market is telling a similar story. Cotality highlights that tight rental conditions and limited new supply have continued to push rents higher, particularly in Western Australia where rental growth has significantly outpaced wage growth in recent years. Rental growth may not be accelerating at the same pace, but conditions remain tight, and for investors, the fundamentals are still very much in their favour.
“Overall, Perth continues to stand out as the top-performing capital city in Australia. It’s always been known for its lifestyle – the weather, the coastline, and its laid-back way of living. But now, it’s getting just as much attention for something else – performance. If the current trajectory is anything to go by, WA might not just stand for Western Australia for much longer. It could just as easily stand for Wealth Advantage.”
SOUTH AUSTRALIA
Andrew Sorensen, Real Estate Agent, Auctioneer, QPIA, Prospa Property Advisory
“South Australia’s property market is gaining strong momentum as we head into the first quarter of 2026. RBA rate cuts lowered borrowing costs, while the SA State Election on 21 March sparked a wave of housing incentives from both Labor and Liberal parties. These policies – focused on stamp duty relief for downsizers and boosting new home supply – are injecting fresh confidence into buyers and investors amid ongoing undersupply and affordability pressures.
“Greater Adelaide’s median house price now sits at $980,815 and units at $675,818, according to Cotality data (early March 2026). This represents a solid 1.3 per cent monthly rise, with annual growth reaching nine per cent in many suburbs.
“Over the past five years, values have climbed an impressive 79.9 per cent. Auction clearance rates remain steady at 70 per cent to 75 per cent, and listings are down 15 per cent to 20 per cent year-on-year in key areas.
“Suburbs leading the charge include Salisbury (15.7 per cent growth), Tea Tree Gully (13.6 per cent), and the Adelaide Hills (13.6 per cent). Mount Barker continues
to shine as a growth corridor, supported by urban expansion and infrastructure upgrades such as Bollen Road developments. Rents have risen eight per cent to 10 per cent annually, delivering attractive yields of four per cent to 4.5 per cent for well- located investment properties.
“The 2026 election has placed housing front and centre. Labor, under Premier Peter Malinauskas, has pledged to abolish stamp duty entirely for downsizers aged 60 and over who sell their principal residence and buy a smaller newly built home or off-the-plan apartment up to $2 million. This could save buyers up to $103,830 and is expected to release 2,000 to 3,000 established homes annually while stimulating new construction. Labor’s $1 billion fast-track fund aims to unlock 17,000 new homes, including nearly 7,000 for first-home buyers.
“The Liberals, led by Ashton Hurn, propose a simpler one-off $15,000 stamp duty concession for downsizers aged 55 and over purchasing any property up to $1.2 million. While broader, this policy focuses less on new supply and more on creating market movement. Both parties also support expanded First Home Owner Grants and faster planning approvals.
“These incentives are already showing early effects. Downsizer activity is rising in established suburbs such as Glenelg and Unley, while new land releases in Mount Barker are accelerating. If implemented, Labor’s targeted new-build focus could increase supply by 10 per cent to 15 per cent in outer areas, moderating price growth. The Liberals’ approach may lift liquidity in existing stock but risks short-term price pressure without adding homes.
“Looking ahead, South Australia remains on track for five per cent to seven per cent price growth in 2026, according to AMP and Cotality forecasts. However, any pause in rate cuts or slower policy rollout could temper momentum. The combination of rate relief and election promises is creating genuine opportunity in South Australia, but success will depend on timely execution and strategic advice.”
TASMANIA
David Timar, Director & Buyer’s Agent, Timar Buyers Agency
“Tasmania’s property market has entered 2026 on a cautiously optimistic footing when addressing the total market. After a period of correction from its 2022 peak, the state is showing clear signs of recovery underpinned by tightening supply, resilient demand, and renewed confidence following the strong infrastructure pipeline for the next three to five years.
“Hobart’s median dwelling value now sits at $722,339, having risen 2.6 per cent over the past quarter and close to seven per cent year-on-year, though, it remains approximately five per cent below its prior peak in 2022, a signal that measured growth, rather than a speculative surge, is driving the current cycle.
“Regional Tasmania (Launceston and Devonport/Burnie) has been a notable outperformer this quarter, posting annual growth of 4.1 per cent compared to Hobart’s 2.6 per cent, this is driven by affordability advantages, and an influx of first
home buyers and investors search for yield (five per cent-plus) and priced out of the capitals. Affordability pressures continue to redirect buyer interest toward regional centres and the unit segment, where entry-level price points (sub $600,000) are drawing both owner-occupiers and investors.
“Supply constraints remain a defining feature of the Tasmanian market. Total listings across the state have fallen approximately 21 per cent year-on-year, maintaining upward pressure on prices even as buyer activity moderates. The rental market tells a similar story, Hobart’s vacancy rate sits at a critically tight 0.3 per cent, with median weekly house rents reaching a record $600 per week.
“New dwelling approvals rose 10.8 per cent year-on-year in late 2025, offering some longer-term relief, though the pipeline is unlikely to close the supply gap in the near term. Homes are currently selling in a median of 37 days, reflecting balanced but competitive conditions.
“The consensus outlook for 2026 is positive but measured. Demand is still strong in the $500,000 to $650,000 market and days on market continue to tighten. If supply sits at the current levels, we will then see price pressure continue and price growth in-line with long-term averages of six per cent-plus this year.
“The primary risks to the upside include renewed affordability pressures and any tightening of monetary policy will affect the lower, more regional areas due to the tighter incomes. Overall, Tasmania presents a compelling value proposition relative to mainland capitals, with fundamentals that support continued, sustainable growth through 2026 and beyond.”
ACT
Brady Yoshia, Founder & CEO, Brady Marcs Buyers Advisory
“Canberra’s property market has started 2026 with steady and measured growth, continuing the pattern we’ve seen in the ACT for many years. It’s a market that rarely experiences the dramatic swings seen in other capitals, instead delivering a more consistent and stable performance for both homeowners and investors.
“According to Cotality’s January 2026 market data, the median dwelling value in Canberra currently sits at around $884,844, with housing values rising 0.3 per cent over the month, 1.3 per cent over the quarter and 5.5 per cent over the past year.
“Houses have continued to outperform units. Over the past year, house values increased 7.1 per cent to a median of $1,033,761, while the unit market has softened slightly with values sitting around $592,009. This reflects the ongoing preference among buyers for detached homes, combined with greater supply in the apartment sector.
“One of the key themes across the Canberra market remains tight supply. Listings have fallen significantly over the past year. Despite the tighter supply, overall sales activity remains steady with 9,334 dwelling sales recorded annually, and homes currently taking around 47 days on market, slightly longer than the long-term average but still reflective of a balanced market environment.
“We’re also seeing strong activity from first-home buyers, particularly those using the Federal Government’s Home Guarantee Scheme, which allows buyers to enter the market with just a five per cent deposit without paying lenders mortgage insurance.
“While rental growth has moderated slightly compared to previous years, the Canberra market continues to offer solid returns for investors.
“Annual rental growth sits around 2.8 per cent for houses and 2.9 per cent for units, with a gross rental yield of approximately 4.1 per cent, which is above the national average.
“Median rents are currently sitting at approximately $736 per week for houses and $602 per week for units, highlighting continued demand across both segments.
“Across Canberra, growth has been relatively broad, although some regions have performed particularly strongly over the past year:
- Tuggeranong – annual growth of around seven per cent, offering strong value and yield potential
- Belconnen and Molonglo – both seeing growth close to 6.8 per cent
- Gungahlin – continuing to attract families with growth of around 6.1 per cent
- Weston Creek – growth around six per cent.
“These areas highlight how different segments of the Canberra market continue to perform well depending on the type of property and buyer demand.
“Another interesting trend emerging in Canberra is that the upper quartile of the market is currently outperforming, driven largely by the city’s high-income workforce and strong employment stability.
“Construction activity has also begun to show signs of renewed momentum, with the latest quarter delivering the strongest pipeline of new projects since 2018, although supply constraints and feasibility challenges remain across the industry.
“Overall, Canberra continues to demonstrate why it’s considered one of Australia’s most stable property markets. While it may not experience the rapid spikes seen elsewhere, it consistently rewards buyers who focus on quality locations, strong fundamentals and a long-term approach to property ownership.”
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