The question on every home buyer and investor’s mind: how high are property prices predicted to go in 2026? After a strong surge in 2025, with national property prices rising 8.6%, many experts are forecasting continued growth in the year ahead. In this guide, we’ll break down the latest predictions for each Australian capital city and explore what this could mean for your buying or investment plans.
Property Prices Predicted to Rise in 2026
According to a recent KPMG report, property prices in Australia could climb by an average of 7.7% in 2026. This follows a strong 2025, which saw record growth in several markets. While economic conditions and interest rates could influence outcomes, the underlying trend points to ongoing price increases, driven by high demand and limited supply.
Whether you’re buying your first home, upgrading, or investing, understanding the forecast for property prices is critical. Let’s explore the expected growth across the major capital cities.
Sydney Property Prices Predicted to Climb
Sydney continues to be Australia’s most expensive housing market. House prices in Sydney are predicted to rise 5.8% in 2026, with apartments expected to grow by 5.3%. With the median house price currently at $1.62 million, the city’s homes could top $1.81 million by the end of the year if these forecasts hold true.
Further growth of 5.7% for houses and 4.0% for apartments is expected in 2027, making now a potentially strategic time to secure a property in Sydney.
If you’re thinking about buying in Sydney, talk to us today to see what you can afford.
Brisbane Property Prices Forecast
Brisbane was one of the hottest property markets in 2025, with a 14.6% rise in home values. KPMG predicts house prices in Brisbane could grow another 10.9% in 2026, followed by 8.9% in 2027. Apartment prices are expected to rise 7.8% in 2026, with a further 4.9% gain in 2027.
For buyers looking for strong returns, Brisbane remains a promising market in 2026, particularly for first-home buyers and investors.
Melbourne Property Prices Set to Rise
Melbourne, with a median property value of $854,000, is emerging as one of Australia’s more affordable capital cities. Property prices in Melbourne are expected to grow 6.8% in 2026. Apartment prices could rise 7.3% in the next 12 months. Growth is projected to continue in 2027, with house prices increasing by 7.3% and apartments by 5.5%.
For those considering Melbourne, the next year could be a window of opportunity to enter the market before prices climb further.
Canberra: Moderate Growth Expected
The nation’s capital is forecast for moderate price growth. Canberra house prices are expected to rise 4.7% in 2026, with apartment prices growing 4.9%. Growth is expected to slow slightly in 2027, with houses up 3.3% and apartments up 3.6%.
Even moderate growth presents opportunities for buyers to secure properties before prices continue to increase.
Hobart Property Prices: Softer Growth
Hobart saw a 7.8% increase in property prices in 2025. In 2026, house prices are predicted to rise 5.4%, while apartments may increase by 5.1%. Growth is expected to continue into 2027, albeit at a softer pace.
Adelaide Property Market Forecast
Adelaide’s median home price reached $908,000, reflecting strong growth in recent years. KPMG predicts house prices in Adelaide could rise 8.2% in 2026, with apartments increasing 6.6%. Growth may moderate in 2027, with houses up 3.3% and apartments 3.8%.
Perth Property Prices Predicted to Surge
Perth was a standout in 2025, with a 17.2% increase in house prices. KPMG forecasts house prices in Perth to rise 12.8% in 2026, and apartments could grow 11.6%. Growth is expected to moderate in 2027, but the WA capital remains a strong performer for investors.
Darwin: Double-Digit Growth on the Horizon
Darwin remains Australia’s most affordable capital, with a median home price of $578,000. Property prices in Darwin could increase 10.5% for houses and 13.4% for apartments in 2026, with 2027 showing slightly softer growth.
What’s Driving Property Prices Higher?
Several factors are likely to fuel growth in 2026:
- Limited Housing Supply: Australia needs an estimated 240,000 new homes annually. Construction isn’t keeping pace, creating upward pressure on prices.
- Strong Buyer Demand: Interest rate cuts in 2025 and the expansion of the First Home Buyer 5% Deposit Scheme boosted home loan applications by 18% in December 2025 compared to the previous year.
With supply tight and demand strong, property prices are likely to continue rising across most capital cities.
Should You Buy in 2026?
While forecasts are never guaranteed, waiting for prices to drop may leave buyers disappointed. 2026 could be a year of opportunity to secure your ideal home before further increases.
Get in touch with us today to check your borrowing capacity and start planning your house-hunting budget. Don’t wait – the right property could be just a call away!
Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
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Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
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