📈 Housing Market Shows Strong Resilience
Australia’s housing market continues to hold strong, with property prices rising again in February despite interest rate hikes and economic uncertainty.
New PropTrack data shows national home prices increased 0.5% for the month and 9.1% over the past year, adding nearly $90,000 to the average property value.
Growth has been strongest in the smaller capitals. Perth, Brisbane and Adelaide recorded monthly increases between 0.6% and 0.7%.
📊 Annual growth highlights
- Perth: ~20%
- Brisbane: ~16%
- Adelaide: ~15%
Meanwhile, Sydney and Melbourne saw slower growth, but gains remain significant due to their higher price points. Sydney prices rose 0.5% in February and 6.1% annually, adding around $103,000 to the average home.
🏗️ Supply Shortages Driving Competition
A key driver of rising prices is the ongoing shortage of available housing.
Low listing volumes, declining construction levels and strong population growth have created intense competition across many markets. As a result, several capital cities now have median house prices approaching or exceeding $1 million.
Government initiatives such as the First Home Guarantee Scheme are also increasing buyer activity by helping first-home buyers enter the market with smaller deposits.
🏢 Affordability pressures are also shifting demand, with unit prices now growing faster than houses as buyers look for more accessible property options.
💰 Investors and Migration Adding Demand
Investor activity is increasing again, with lending to investors growing at its fastest pace since 2015.
At the same time, strong migration has added further pressure to housing supply. Record population growth combined with falling building approvals has intensified competition across both rental and purchase markets.
🔎 Market Outlook
While economists expect future interest rate increases may slow price growth, underlying demand remains strong.
Limited housing supply, ongoing population growth and investor activity suggest the market may see slower but continued growth rather than a major downturn.
For buyers, sellers and investors navigating these conditions, understanding market trends is essential. Property expert Rodney McLoughlin continues to monitor these shifts closely, helping clients make informed real estate decisions.
Real Estate Newsletter
This article is a curated summary of various news stories from the past week, offering insights and updates on the real estate market. 6 March 2026
Rodney McLoughlin is a trusted real estate professional with deep insights into the Australian property market. For personalized advice and market expertise, reach out to Rodney today.
Join The Discussion