Key takeaways
Housing markets have predictably steadied into 2026 as the usual holiday impacts on buyer and seller numbers together with sharply reduced auction activity act to place downward pressure on prices following a booming 2025.
The national capital city median house price increased marginally by 0.1% over the January quarter to $1,279,800 compared to the December quarter, according to the latest data from My Housing Market.
Annual national house prices are however are now higher by 10.3% and have increased over 11 consecutive months.
Capital city home prices have predictably eased over January 2026 as the primary holiday month as usual significantly reduced buyer and seller activity.
Housing markets have predictably steadied into 2026 as the usual holiday impacts on buyer and seller numbers together with sharply reduced auction activity act to place downward pressure on prices following a booming 2025.
The national capital city median house price increased marginally by 0.1% over the January quarter to $1,279,800 compared to the December quarter, according to the latest data from My Housing Market.
Annual national house prices are however are now higher by 10.3% and have increased over 11 consecutive months.
Most capitals reported higher or steady house prices over January reflecting early-year seasonal impacts although annual growth rates have generally increased compared the previous months results.
Perth was the top monthly performer sharply higher by 2.7% followed by Darwin up 0.4%, Brisbane higher by 0.3% and Canberra up 0.1%.
Adelaide prices were steady, however Sydney house prices were lower by 0.2%, Melbourne down 0.6% and Hobart fell 1.8%.
Darwin, Perth, Brisbane, and Adelaide have reported the highest house price increases compared to the January quarter 2025 - higher by 25.9%, 17.8%, 16.1% and 14.2% respectively.
Median House Prices January 2026
| Median | Month | This Year | 1 Year | 2 Year | |
| Sydney | $1,770,825 | -0.2% | -0.2% | 7.4% | 13.3% |
| Melbourne | $1,114,261 | -0.6% | -0.6% | 6.7% | 5.7% |
| Brisbane | $1,169,973 | 0.3% | 0.3% | 16.1% | 30.7% |
| Adelaide | $1,098,433 | 0.0% | 0.0% | 14.2% | 28.4% |
| Perth | $1,149,798 | 2.7% | 2.7% | 17.8% | 43.6% |
| Hobart | $736,517 | -1.8% | -1.8% | 9.7% | 9.3% |
| Darwin | $767,496 | 0.4% | 0.4% | 25.9% | 25.8% |
| Canberra | $1,008,869 | 0.1% | 0.1% | 6.6% | 5.9% |
| National | $1,279,800 | 0.1% | 0.1% | 10.3% | 17.5% |
National unit prices higher
National unit prices were marginally lower over the January quarter again reflecting holiday season effects and followed 11 consecutive months of growth, falling by 0.2% to $712,550 but remained 8.4% higher than the January quarter 2025 result.
Similar to houses, Perth was the top monthly performer with unit prices rising over January by 2.2% followed by Brisbane up 1.4%, Sydney up 0.2% and Hobart higher by 0.1%.
Canberra unit prices however fell by 1.4 % with Melbourne down 2.2%, Adelaide falling 3.3% and Darwin down 4.8% over the month.
Median Unit Prices January 2026
| Median | Month | This Year | 1 Year | 2 Year | |
| Sydney | $811,125 | 0.2% | 0.2% | 5.3% | 9.5% |
| Melbourne | $584,948 | -2.2% | -2.2% | 6.5% | 4.6% |
| Brisbane | $720,403 | 1.4% | 1.4% | 22.9% | 53.9% |
| Adelaide | $609,379 | -3.3% | -3.3% | 14.9% | 36.7% |
| Perth | $633,860 | 2.2% | 2.2% | 24.8% | 52.4% |
| Hobart | $536,855 | 0.1% | 0.1% | -3.1% | 14.8% |
| Darwin | $411,088 | -4.8% | -4.8% | 16.4% | 15.4% |
| Canberra | $500,923 | -1.4% | -1.4% | 0.4% | -0.8% |
| National | $712,550 | -0.2% | -0.2% | 8.4% | 14.5% |
Perth, Brisbane, Darwin, and Adelaide continue to record clearly the highest annual unit price growth to January 2026 up by 24.8%, 22.9%, 16.4% and 14.9% respectively.
Comment
Capital city home prices have predictably eased over January 2026 as the primary holiday month as usual significantly reduced buyer and seller activity.
Capital city home auction markets were in recess over the month impacting the price mix of homes transacted, with a significantly lower proportion of higher prices homes in the market – notably in Sydney, Melbourne, Adelaide and Canberra.
2025 was a strong year for home price growth generally as RBA reductions of official interest rates in February, May and August 2025 significantly improved housing affordability and enhanced buyer and seller confidence in chronically undersupplied housing markets.
House prices however were marginally higher or steady in most capitals over January 2026 with Brisbane, Perth and Darwin again the top performers of the major cities, with prices in a Sydney and Melbourne lower reflecting auction markets in recess.
Unit price growth was also mixed over January with annual results in Brisbane, Perth and Adelaide continuing to clearly lead the capitals, and adding to extraordinary price increases in those cities over the past 2 years.
2026 is set to continue to produce prices growth for most capital city housing markets, fuelled still by improved affordability and rising confidence generated by 2025’s lower interest rates.
Prices growth in Brisbane, Adelaide and Perth is set to again lead capital city outcomes although results are unlikely to match the strong 2025 results as surging prices and steady rates have acted to diminish affordability.
Sydney will to continue to report solid results, with the Melbourne market clearly now on the move after a lengthy stagnant period with prices growth set to continue for both houses and units.
Underlying drivers continue to support housing market activity generally, although the August RBA rate cut is now unlikely to be followed by another in the foreseeable future reflecting rising inflation and a resilient labour market.
The spectre of near-term rate increases is unlikely to significantly impact housing market activity with demand generally continuing to track ahead of supply.
The national economy remains robust with jobless rates still relatively low and participation rates high – and still enhanced by 2025 interest rate cuts.
Although high post-COVID migration levels have clearly eased recently, numbers remain robust and will add to chronic housing undersupply supporting high rents and low vacancy rates generally in capital city rental markets.
Following a period of easing rental growth, the latest data is reporting continuing low home rental vacancy rates overall with rents predictably on the rise again.
High rents and higher prices continue to provide clear incentives for first home buyers and investors chasing solid investment returns.
New government initiatives to support first home buyers will increase demand and act to place more upward pressure on prices.
Capital city housing markets generally recorded higher house and unit prices over 2023, 2024 and surged over 2025 fuelled by rising buyer and seller confidence.
National home prices recorded strong growth over 2025 exceeding the results of the previous two years and bolstered by lower interest rates, a continuing strong economy and chronic low levels of new home construction.
2026 is again set to report higher home prices although at lower levels than 2025 without the supercharged stimulus of 2025’s sharply falling interest rates and dampened by the increased likelihood of rising inflation.
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