Australian House Prices Forecast 2026: How High Could Prices Go in 2026?
After a solid run-up through 2025, plenty of commentators reckon property prices could keep pushing higher in 2026. This post looks at what the big forecasts are saying, including the Australian property price forecast 2026, and what that could mean if you’re planning to buy, upgrade, or invest.
In 2025, home owners had a strong year. Buyers, on the other hand, had to keep pace as property prices lifted 8.6% nationally.
KPMG’s latest outlook suggests there may still be momentum left. It forecasts house prices could rise a further 7.7% in 2026, with growth continuing into 2027.
Of course, forecasts are not guarantees. Plenty can shift over 12 months, including rates, supply, and buyer confidence.
So, what might your city do next?
City-By-City: Australian Property Price Forecast 2026
KPMG breaks down expected price growth across the major capitals for houses and apartments (units). Use this australian house prices forecast 2026 as a guide, then compare it against your own budget and timeline.
Sydney: edging closer to a $2 million median house price
KPMG expects Sydney house prices to rise 5.8% in 2026, then 5.7% in 2027. Units are forecast at 5.3% in 2026 and 4.0% in 2027.
Sydney’s median house price has been reported at about $1.62 million. A 5.8% lift would put it around $1.71m by end of 2026, and compounding 2027 would take it closer to the high $1.8m range.
Brisbane: the big gains may not be over yet
Over the past year, Brisbane home values climbed 14.6%, making it one of the strongest increases nationwide and second only to Perth.
KPMG forecasts Brisbane house prices to rise 10.9% in 2026 and 8.9% in 2027. Unit prices are tipped to increase 7.8% in 2026, then 4.9% in 2027.
Melbourne: growth expected to outpace 2025
Melbourne’s median residential property value of $854,000 has been comparatively more affordable than Sydney and Brisbane recently, but forecasts still point upward.
KPMG predicts Melbourne house prices could rise 6.8% in 2026 and 7.3% in 2027. Units are forecast at 7.3% in 2026, then 5.5% in 2027.
Canberra: moderate growth expected
Canberra’s growth was more restrained through 2025, and the outlook remains steadier.
KPMG forecasts Canberra house prices at 4.7% in 2026 and 3.3% in 2027. Units are expected to rise 4.9% in 2026 and 3.6% in 2027.
Hobart: softer growth tipped for 2026
Hobart saw prices rise over the past year, but expectations are for slightly cooler growth ahead.
KPMG forecasts Hobart house prices to rise 5.4% in 2026, with units at 5.1%. In 2027, the forecasts ease to 4.1% for houses and 4.0% for units.
Adelaide: the run of growth may continue
Strong gains over the past few years have pushed Adelaide’s median home price up to $908,000.
House prices are forecast to rise 8.2% in 2026, then 3.3% in 2027. Unit prices are tipped to climb 6.6% in 2026, followed by 3.8% in 2027.
Perth: another year of big gains
Perth’s property market led the way in 2025, recording 17.2% price growth.
KPMG expects Perth house prices to rise 12.8% in 2026, with units up 11.6%. Growth is forecast to slow in 2027 to 5.1% for houses and 3.9% for units.
Darwin: double-digit growth may lie ahead
Darwin remains Australia’s most affordable capital, with a median home price of $578,000, and prices are expected to keep trending up over the next two years.
In 2026, house values could rise by 10.5%, while apartments may post even stronger growth of 13.4%.
Growth for Australian housing market forecast to ease in 2027, with houses up 6.8% and units up 9.3%.
What’s likely to keep prices moving?
KPMG is not alone in expecting growth.
Cotality (formerly CoreLogic) has also pointed to a softer, slower 2026 compared to 2025, rather than a sharp reversal. In other words, think “modest” growth, not bargain-season headlines.
The recurring theme behind many forecasts is simple: demand is still strong, and supply is still tight.
Australia’s housing supply targets highlight the gap. The national ambition of 1.2 million new homes over five years works out to about 240,000 homes a year, and industry reporting has flagged how hard that pace is to maintain.
On the demand side, lower rates helped keep buyers active through 2025. The RBA cut rates three times in 2025, and that improved borrowing power for many households.
Policy settings also played a role. The expanded 5% deposit scheme brought more first home buyers into the mix in late 2025.
The upshot was a noticeable lift in lending interest. One measure, based on Equifax enquiry data, put December 2025 home loan enquiries up 18% year-on-year.
If you’ve been watching the australian house prices forecast 2026, the takeaway is that waiting for a big drop may be a long wait. If you’re following the forecast for 2026, focus on what you can control: budget, borrowing capacity, and a realistic target area.
Time to Review Your Buying Plans?
Forecasts can change quickly. Rates can surprise. Supply can loosen in one pocket and stay tight in another.
Still, if you’re delaying a purchase purely in the hope prices fall, you may end up paying more later, or missing the property you actually want. This is where the australian property price forecast 2026 is useful, because it helps you plan with eyes open, not crossed fingers.
Get Home-Loan Ready With Osinski Finance for Your Australian Housing Market Forecast 2026 Plans
Ready to get home-loan ready?
If you want a clear plan, speak with Osinski Finance. We help Australians compare home loan options, run the numbers on investing in a property, and map out a smart path to becoming a first home buyer, using the Australian property price forecast 2026 to guide timing, budgets, and borrowing choices.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Updates
