Australian house prices expected to rise at least 5% in 2026 after jump last year

While last year’s 8.6% increase isn’t likely to be repeated, economists expect growth across the country as demand continues to outstrip supply

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Australian residential property values are expected to rise by at least 5% over the next 12 months – on top of the 8.6% increase seen in 2025 – exacerbating a housing affordability crunch across the country.

Every state and territory capital city recorded increases last year, according to Cotality data, led by a dramatic 18.9% rise in Darwin, 15.9% in Perth and 14.5% in Brisbane.