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<\/p>\nProperty prices have continued to rise across the country at the start of 2026, supported by affordable houses.<\/p>\n
However, the pace of growth is expected to slow as interest rate hikes put off prospective buyers.<\/p>\n
Cotality’s monthly Home Value Index increased 0.8 per cent nationally in January, up from 0.6 per cent in December, taking the national median value to $912,465.<\/p>\n
The report found that growth in most cities was supported by homes at the lower end of the value spectrum.<\/p>\n
Across the combined capitals, lower quartile house values were up 1.3 per cent in January, compared with a 0.3 per cent rise across the upper quartile.<\/p>\n
“This trend of stronger growth conditions at lower price points is supported by intense competition for more affordable houses,” Cotality research director Tim Lawless said.<\/p>\n
“This is where first home buyers, investors and, progressively, mainstream demand is most concentrated.<\/p>\n
“Despite the most unaffordable conditions on record in many cities, along with a rebound in cost-of-living pressures and the prospect of a rate hike as early as this Tuesday, we are still seeing a broad-based rise in housing values.”<\/p>\n
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Tim Lawless says the biggest growth in property prices is occurring at the more affordable end of the market. (ABC News: Jessica Ross)<\/p>\n
Sydney and Melbourne recorded a marginal rebound, rising 0.2 per cent and 0.1 per cent respectively, following small falls of 0.1 per cent in each city in December.<\/a><\/p>\n Home values in both markets were slightly down from their peaks, with Sydney 0.1 per cent below its peak in November 2025 and Melbourne 0.7 per cent below record highs in March 2022.<\/p>\n However, the momentum across the mid-sized capitals continued into the new year, with Perth (+2 per cent) leading the gains, followed by Brisbane (+1.6 per cent) and Adelaide (+1.2 per cent).<\/p>\n Sydney was still the most expensive city to buy in, with a median home price of $1,290,537.<\/p>\n According to Cotality, the number of homes advertised for sale is down 19 per cent compared to the same time last year, and 25 per cent below the five-year average.<\/p>\n “The ongoing capital gains reflect persistently low inventory in the face of above-average housing demand, however we are likely to see demand-side pressures gradually ease in 2026,” Mr Lawless said.<\/p>\n “Affordability and serviceability constraints are likely to naturally dampen demand, but also renewed cost-of-living pressures and a strong chance that interest rates will rise.<\/p>\n “There is also slowing population growth to consider.”<\/p>\n The median home price in Sydney was $1,290,537 in late January. (Unsplash:<\/a> Martin David<\/a>)<\/p>\n The interest rate factor<\/p>\n According to Cotality, property prices grew 8.6 per cent last year, with market sentiment boosted by the Reserve Bank’s three interest rate cuts.<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/02\/3af1ab3beea78f837571367e72c7a6c5.jpeg\")
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