Australia’s housing market delivered solid gains in 2025, with national home values rising 8.6%, adding around $71,400 to the median dwelling price, the strongest annual growth since 2021. All capital cities and regional markets recorded increases, led by Darwin (+18.9%), while Melbourne saw the smallest rise at 4.8%.However, momentum began to cool in December, when the national Home Value Index recorded its smallestmonthly gain in five months (+0.7%). Sydney and Melbourne both declined by -0.1%, marking the first monthly fall in over a year. Cotality’s research director Tim Lawless attributes this softening to renewed concerns that interest rates may remain “higher for longer”, along with worsening affordability and cost-of-living pressures. Growth has increasingly been driven by the lower and middle segments of the market, as affordability pressures continue to steer buyers away from higher-priced homes. Upper-quartile values rose just 0.2% in December, compared with 1.1% growth in the more affordable segments. Regional markets remain more resilient, posting 9.7% growth for the year, outperforming the combine capitals at 8.2%. Western Australia’s regions (+16.1%) and regional Queensland (+12.6%) were the standout performers. Outlook for 2026 While 2025 closed strongly, the outlook for 2026 is more cautious. Uncertainty around inflation, interest rates, affordability and household debt is expected to weigh on confidence. That said, ongoing housing supply shortages should help prevent any significant downturn in home values. For investors and homeowners alike, Perth’s property market presents exciting opportunities. Whether you’reconsidering selling, buying, or investing, now is the time to explore your options. Contact our team atsales@iqiwa.com.au to discuss your property goals today. Download to see insights from other country marketsDownload

Written by Lily Chong, Head of IQI Australia  Australia’s housing market posted another month of solid momentum, with Cotality’s national Home Value Index rising 1.0% in November. This marks the third consecutive month where home values have climbed by one per cent or more. Although the pace has eased slightly from October’s 1.1% rise, the overall trend remains positive, signalling resilient buyer demand in the face of broader economic uncertainty.  Perth Leads the Nation  Perth continues to outperform all other capitals, recording an impressive 2.4% rise in dwelling values for November. Extremely low levels of stock—sitting more than 40% below the long-term average—combined with elevated buyer activity have created strong upward pressure on prices. This monthly growth alone added over $21,000 to the median dwelling value, equating to around $5,000 per week. Once again, Perth highlights the growing divergence between mid-sized capitals and Australia’s larger, more supply-balanced markets.  Mixed Results in Sydney & Melbourne  Sydney and Melbourne delivered more modest results, rising 0.5% and 0.3% respectively. These softer gains reflect increased affordability constraints, with prices already sitting at historically high levels, limiting further upward movement. Sydney’s supply levels are only slightly below its five-year average, meaning the city does not face the same supply shortages driving stronger growth elsewhere. Importantly, Sydney’s monthly growth rate appears to have peaked back in August at 0.9%, suggesting the city may be entering a more stable phase.  Affordability Pressures Continue to Build  Housing affordability remains a key challenge nationally. Cotality’s latest metrics show the median dwelling value is now 8.2 times higher than the annual household income—its most stretched level on record. At the same time, mortgage serviceability has climbed to 45% of household income, making it increasingly difficult for new buyers to secure finance. Auction clearance rates have also softened since mid-September, drifting below the decade average by mid-November, particularly in Sydney and Melbourne where clearance rates have held in the low 60% range.  Market Outlook  Looking ahead, the combination of persistent inflation and expectations that interest rates will remain elevated for longer is likely to influence buyer sentiment. With affordability challenges deepening, fewer buyers may be able to borrow at the levels required to keep pace with rising prices. Recent trends also indicate that lower-priced segments of the market are seeing the strongest value growth across most capitals, as buyers adjust to tighter lending conditions. Melbourne is the key exception, where the middle of the market is currently experiencing the fastest uplift.  For investors and homeowners alike, Perth’s property market presents exciting opportunities. Whether you’re considering selling, buying, or investing, now is the time to explore your options. Contact our team at sales@iqiwa.com.au to discuss your property goals today.  Source: Cotality Research, December 2025  Discover more here:Download Now!

Written by Lily Chong, Head of IQI Australia Australia’s housing markets are gathering strong momentum as we head deeper into spring, with September delivering the sharpest monthly rise in national dwelling values since October 2023. The Cotality Home Value Index (HVI) lifted 0.8% over the month, driven by a solid 0.9% gain across the capital cities.  On a quarterly basis, national dwelling values rose 2.2% in the September quarter—up from 1.5% in June and more than double the 1.1% growth in March. In dollar terms, this equates to an $18,215 increase in the median dwelling value over just three months.  Growth remains broad-based, with every capital city and regional market recording gains over the month, quarter, and year. However, the pace of growth is again showing clear divergence:  Perth (+4.0%) and Brisbane (+3.5%) led the capitals through the September quarter, supported by strong unit market demand.  Darwin (+5.9%) surged ahead, marking the fastest quarterly growth rate of all capitals.  Most cities are still seeing stronger gains in house values, though Brisbane, Perth and Hobart stand out with unit prices outpacing houses due to ongoing supply shortages.  According to Cotality’s Research Director, Tim Lawless, supply constraints are driving much of this momentum:  Darwin listings are 53% below average  Perth listings are 45% below average  Brisbane listings are 31% below average  At the same time, quarterly sales activity is running above average, highlighting the mismatch between supply and demand. Across value segments, the lower and middle tiers are now leading the upswing. September quarter growth was strongest in the middle of the market (+2.7%), followed by the lower quartile (+2.6%), while the upper quartile rose 1.8%. This shift suggests that improved borrowing capacity is supporting buyers at slightly higher price points.  Advertised stock levels remain tight, with capital city listings sitting 18% below the five-year average at the end of September. Meanwhile, sales activity was 7.3% above average, adding further fuel to the market.  Selling conditions have strengthened noticeably, with auction clearance rates holding around 70% since mid-August—well above the average levels seen earlier in the year (63% in June and 62% in March).  Source: Cotality  Discover more country insights here!Download