Key takeaways
Capital city home prices have continued to rise over March despite another increase in official interest rates and growing uncertainty over the outlook for inflation and the global economy.
The national capital city median house price increased by a solid 0.9% over the March quarter to $1,296,402 compared to the February quarter, according to the latest data from My Housing Market.
Annual national house prices are higher by a strong 11.0% and have now increased over 13 consecutive months.
National unit prices were similarly higher over the March quarter compared to the February quarter, rising by 0.9% to $725,206 – and have now increased by 8.7% compared to the March quarter 2025 result.
Capital city home prices have generally fallen over May reflecting the impact on affordability and confidence of this year’s three consecutive increases in official interest rates.
The national capital city median house price fell by 0.8% over the May quarter to $1,287,476 compared to the April quarter, according to the latest data from My Housing Market.
The May result was the first decline in national house prices since February 2025 and the sharpest decline since September 2022. Annual national house prices however remain higher by 8.5%.
Most capitals reported lower house price over the month however Hobart, Brisbane and Perth recorded increases, higher by 1.7%, 0.5% and 0.1% respectively.
Darwin house prices fell by 0.3%, Adelaide was down 0.5%, Melbourne and Sydney each fell 1.3% and Canberra prices were lower by 2.2%.
Despite some monthly falls, most capitals continue to report strong although lower annual house price growth in excess of 10%, with Perth, Darwin, Brisbane, and Adelaide the highest, up by 24.5%, 20.0%, 19.5% and 12.7% respectively.
Quarterly Median House Prices May 2026
| Median | Month | This Year | 1 Year | 2 Year | |
| Sydney | $1,751,934 | -1.3% | -1.3% | 3.9% | 8.0% |
| Melbourne | $1,085,481 | -1.3% | -3.2% | 1.0% | 1.4% |
| Brisbane | $1,223,068 | 0.5% | 4.9% | 19.5% | 29.6% |
| Adelaide | $1,132,111 | -0.5% | 3.0% | 12.7% | 24.7% |
| Perth | $1,212,196 | 0.1% | 8.3% | 24.5% | 38.8% |
| Hobart | $774,651 | 1.7% | 3.3% | 12.0% | 14.2% |
| Darwin | $791,083 | -0.3% | 4.0% | 20.2% | 25.7% |
| Canberra | $999,481 | -2.2% | -0.8% | 2.9% | 2.7% |
| National | $1,287,476 | -0.8% | 0.7% | 8.5% | 13.6% |
National unit prices were also lower
National unit prices were also lower over the May quarter compared to the April quarter, falling by 0.7% to $723,190 – but have increased by 6.7% compared to the May quarter 2025 result.
Most capitals reported lower or flat unit prices over the month with Canberra the exception with an increase of 3.4%.
Quarterly Median Unit Prices May 2026
| Median | Month | This Year | 1 Year | 2 Year | |
| Sydney | $808,239 | -1.1% | -0.1% | 2.6% | 5.2% |
| Melbourne | $586,608 | -0.6% | -1.9% | 3.0% | 2.2% |
| Brisbane | $778,303 | -0.1% | 9.5% | 26.7% | 47.2% |
| Adelaide | $627,014 | 0.0% | -0.5% | 12.9% | 28.0% |
| Perth | $689,167 | -0.5% | 11.1% | 27.1% | 47.4% |
| Hobart | $573,167 | -0.4% | 6.9% | -0.5% | 19.0% |
| Darwin | $442,618 | -0.3% | 3.1% | 11.6% | 27.1% |
| Canberra | $522,442 | 3.4% | 2.9% | 5.0% | 0.9% |
| National | $723,190 | -0.7% | 1.3% | 6.7% | 11.0% |
Similar to houses, Perth, Brisbane, Adelaide and Darwin continue to record the highest annual unit price growth to May 2026. up by 27.1%, 26.7%, 12.9% and 11.6% respectively.
Comment
Capital city housing markets have generally reported lower home prices over May with clearly easing conditions predicably reflecting the impact on affordability and confidence of consecutive official interest rate increases in February, March and May.
Increased uncertainty over the economic outlook and significant changes to federal property taxes have also impacted market activity.
The outlook for home prices through 2026 is now increasingly problematic with the rising spectre of further interest rate increases and elevated uncertainty over the outlook for inflation and the economy as a consequence of the recent sharp increase in oil prices will act to continue to dampen affordability and confidence generally.
The economy however currently remains reasonably strong although the recent rise in the jobless rate to the highest level in 6 years is clearly providing a warning sign that may act to moderate RBA higher rate decisions in the shorter-term.
Housing demand continues to outpace low and diminishing housing supply and although high post-COVID migration levels have clearly eased recently, numbers remain solid 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 continues to report extraordinarily low home rental vacancy rates and predictable signs that rents are on the rise again.
Recently announced changes to property taxes designed to reduce investor activity will likely place further upward pressure on rents.
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 through sharp cuts to interest rates.
2026 is now likely to report mixed home price outcomes with significant uncertainty emerging over the near-term future for already higher interest rates and easing economic activity that will generally continue to dampen buyer and seller confidence and undermine housing affordability.
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