Australia’s housing market has entered 2026 with steady demand, constrained supply and uneven growth across states, according to the latest national update from the Property Investment Professionals of Australia.
PIPA Chair Cate Bakos said low stock levels, strong migration and changing affordability continue to support prices even as economic conditions shift.
“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.”
She said Western Australia remains the strongest performing market, with annual price growth around 22 per cent, while South Australia is building momentum through housing incentives and buyer confidence. Tasmania is showing signs of recovery after earlier corrections, and the ACT continues to record steady growth with limited supply.
In New South Wales, Propertybuyer.com.au chief executive Rich Harvey said the market is showing stable buyer engagement and gradual adjustment to economic conditions.
“The NSW property market has entered 2026 with steady buyer engagement and a measured outlook,” he said.
“Sydney dwelling values increased slightly by 0.2 per cent over the quarter to February 2026… Values are now just 0.1 per cent below the record peak observed in November 2025.”
He noted that supply remains tight, with total listings still well below the five-year average, supporting price stability. Auction clearance rates are above long-term averages, and rental conditions remain tight with low vacancy rates.
In Victoria, National Property Buyers director Antony Bucello said Melbourne’s market reflects mixed but resilient conditions.
“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,” he said.
He said demand remains strong for family homes in middle-ring suburbs and outer areas below $1 million, while the prestige market and inner-city apartments are seeing weaker growth.
“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.”
Queensland continues to show strong growth, with demand exceeding supply across both metropolitan and regional areas. Buyers agent Fern Walcott said competition remains intense.
“Queensland markets have seen a strong start to 2026, with demand continuing to outpace supply,” she said.
“Brisbane properties are typically receiving multiple offers and selling within one week of the first open home.”
She said rental markets remain tight, with vacancy rates around one per cent and rents rising faster than wages over the past five years.
In Western Australia, Dynamic Advisory property specialist Laura Kolomyjec said Perth continues to outperform other capitals.
“The Perth property market continues to outperform expectations… tight supply, strong population growth, and a WA economy that continues to hold its own,” she said.
“Listings in Perth [are] around 48 per cent below the five-year average… demand hasn’t disappeared; it’s just competing for what little stock is available.”
“Queensland markets have seen a strong start to 2026, with demand continuing to outpace supply. Brisbane properties are typically receiving multiple offers and selling within one week of the first open home”
She said population growth and affordability relative to eastern states are continuing to drive demand.
South Australia is seeing renewed activity following policy announcements tied to the state election. Prospa Property Advisory’s Andrew Sorensen said incentives aimed at downsizers and first-home buyers are shaping the market.
“South Australia’s property market is gaining strong momentum as we head into the first quarter of 2026,” he said.
He said median house prices in Greater Adelaide have continued to rise, supported by lower borrowing costs and policy measures designed to boost supply and activity.
Tasmania is showing signs of recovery after earlier declines, with tighter listings supporting price growth. Buyer’s agent David Timar said the market is stabilising.
“Tasmania’s property market has entered 2026 on a cautiously optimistic footing… showing clear signs of recovery underpinned by tightening supply, resilient demand, and renewed confidence,” he said.
He noted that regional areas are outperforming Hobart due to affordability and investor demand, while rental markets remain extremely tight.
In the ACT, Brady Marcs Buyers Advisory founder Brady Yoshia said the market continues to follow a steady pattern.
“Canberra’s property market has started 2026 with steady and measured growth,” he said.
He said detached homes continue to outperform units, with tight supply and stable employment conditions supporting long-term performance.
Across the country, the report points to a market shaped by limited supply, population growth and persistent demand. While conditions vary between states, the overall outlook suggests continued price support in 2026, with affordability and interest rates remaining key factors to watch.
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