Key takeaways
Home prices have increased sharply in 2025, with December reporting another month of strong property price growth to conclude the year.
The national capital city median house price surged by 0.6% over December to $1,279,988, according to the latest data from My Housing Market.
Annual national house prices are now higher by 9.9% and have now increased over ten consecutive months.
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.
Home prices have increased sharply in 2025, with December reporting another month of strong property price growth to conclude the year.
The national capital city median house price surged by 0.6% over December to $1,279,988, according to the latest data from My Housing Market.
Annual national house prices are now higher by 9.9% and have now increased over ten consecutive months.
Most capitals again reported house price increases over December although growth rates were generally lower than the previous month reflecting the impact of the beginning of the lengthy end-of-year holiday season.
Perth and Darwin were the top monthly performers higher by 1.9% and 1.7% respectively followed by Hobart up 1.5%, Brisbane higher by 1.4%, Adelaide up 1.1% with Sydney higher by 0.1% and Melbourne steady.
Canberra house prices however were lower by 1.3% over the month.
Darwin, Brisbane, Perth and Adelaide have reported the highest house price increases over 2025 - higher by 23.5%, 15.8%, 15.3% and 12.4% respectively.
Median House Prices December 2025
| Median | Month | This Year | 1 Year | 2 Year | |
| Sydney | $1,780,058 | 0.1% | 7.6% | 7.6% | 13.7% |
| Melbourne | $1,126,974 | 0.0% | 7.3% | 7.3% | 6.3% |
| Brisbane | $1,162,399 | 1.4% | 15.8% | 15.8% | 31.2% |
| Adelaide | $1,095,818 | 1.2% | 12.4% | 12.4% | 27.6% |
| Perth | $1,116,637 | 1.9% | 15.3% | 15.3% | 41.3% |
| Hobart | $751,039 | 1.5% | 10.0% | 10.0% | 10.9% |
| Darwin | $772,763 | 1.7% | 23.5% | 23.5% | 22.1% |
| Canberra | $1,007,089 | -1.3% | 5.5% | 5.5% | 5.6% |
| National | $1,279,988 | 0.6% | 9.9% | 9.9% | 17.5% |
National unit prices higher
National unit prices were also higher again over the December quarter and for the eleventh consecutive month, rising by 0.6% to $716,030 to remain 8.2% higher than the December quarter 2024 result.
Adelaide was the top monthly performer with unit prices rising over December by 5.3% followed by Perth up 3.7%, Brisbane up by 2.1%, Canberra higher by 2.0%, Melbourne higher by 0.5% and Darwin up 0.4%, Sydney and Hobart unit prices however, fell by 0.3% 0.6% respectively over the month.
Median Unit Prices December 2025
| Median | Month | This Year | 1 Year | 2 Year | |
| Sydney | $810,763 | -0.3% | 4.5% | 4.5% | 8.5% |
| Melbourne | $602,051 | 0.5% | 7.3% | 7.3% | 5.6% |
| Brisbane | $710,411 | 2.1% | 23.6% | 23.6% | 55.8% |
| Adelaide | $633,479 | 5.3% | 20.3% | 20.3% | 38.6% |
| Perth | $619,095 | 3.7% | 20.8% | 20.8% | 50.0% |
| Hobart | $538,142 | -0.6% | 3.6% | 3.6% | 6.5% |
| Darwin | $434,338 | 0.4% | 21.5% | 21.5% | 22.6% |
| Canberra | $508,952 | 2.0% | 1.6% | 1.6% | -0.5% |
| National | $716,030 | 0.6% | 8.2% | 8.2% | 14.1% |
Brisbane, Darwin, Perth and Adelaide have recorded clearly the highest annual unit price growth over 2025 up by 23.6%, 21.5%, 20.8% and 20.3% respectively.
Comment
Capital city home prices have concluded 2025 with more robust results generally over December, although again lower than reported over the previous November quarter, reflecting the early impact of the major holiday season.
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 again increased in most capitals over December with Brisbane and Perth again the top performers of the major cities, with prices in a revived Melbourne holding steady.
Unit price growth also again remained positive over December 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 by improved affordability and rising confidence generated by 2025’s lower interest rates.
Price 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 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 national economy remains robust with jobless rates still relatively low and participation rates high – and enhanced by recent 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 still-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 have 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
- Also read:December Reports Remarkable Annual Home Price Growth | Latest stats from Dr. Andrew Wilson
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- Also read:Why the ALP’s Grand Plan to Build 1.2 Million Homes Is Destined to Fail – A Reality Check
- Also read:Here’s how I’ll be investing in property in 2023
