What Australia’s Housing Market Looks Like for Buyers in 2026
In 2025, Australia’s property market finished strong. For prospective purchasers, the message is clear: prices continue to increase. There are significant numbers of buyers competing to purchase properties and strategy will be incredibly important moving forward.
As stated in the December 2025 Edition of The Domain House Price Report, house prices in every capital city across Australia have grown by 9.6% over the past 12 months (an increase that has continued for 12 consecutive quarters), confirming that the market is still performing extremely well however it does also indicate that Buyers will need to select and prepare themselves appropriately in order to take advantage of this opportunity.
Capital City Prices Keep Pushing Higher
One of the biggest takeaways from the report is that six capital cities now have a median house price above $1 million. Perth recently joined this group after a 9.9% jump in just one quarter, showing how quickly “affordable” markets can change.
Melbourne, which had been lagging behind, has now re-entered a growth phase, recording 7.4% year-on-year growth. Brisbane, Adelaide and Perth continue to lead the country, driven by population growth, tight supply and ongoing buyer demand.
For buyers, this means waiting on the sidelines often comes at a cost. In many cases, the same budget today buys less than it did six or twelve months ago.
Units Are Closing the Gap
Another key trend is the strong performance of units, especially in major cities. In some locations, units are now outperforming houses as buyers look for more affordable entry points close to jobs, transport and lifestyle hubs.
This is where understanding the house vs unit value gap becomes important. In some suburbs the gap is narrowing, while in others it’s widening. Looking only at city-wide averages can be misleading—what really matters is what’s happening street by street.
Tight Supply Means Tougher Competition
Low listing numbers continue to drive competition across most capitals. Fewer homes for sale means more buyers chasing the same properties, often leading to rushed decisions or emotional bidding.
From a buyer’s agent perspective, this is where planning beats speed. Acting quickly is important, but acting without a clear strategy can increase your negotiation risk and push you beyond your comfort zone.
Why Suburb Selection Matters More Than Ever
The report shows uneven growth across cities and regions. Some suburbs are seeing strong gains, while others are moving much more slowly. This is why suburb selection is critical.
A well-researched buying strategy based on local data, future supply, and long-term fundamentals, can help buyers avoid overpaying and reduce downside risk.
How Buyers Should Handle the Investment
Rising prices don’t mean buyers should rush but they also shouldn’t wait without a plan. With competition increasing and affordability shrinking, informed decisions are more important than ever.
Are you prepared for the next move?
Connect with Investmate if you’d like to get personalized recommendations or to develop your purchasing plan. You can reach us at +61 421 942 049 or Schedule a complimentary consultation on our website. With the correct guidance, you will have the edge that will assist you in purchasing the most suitable property on time, cost, and location.
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