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Domain Sees Capital-City House Prices Hitting New Records in 2026

Forecasts cite interest-rate cuts as the key force lifting demand into 2026.

Overview

  • Domain projects combined-capital house prices to rise about 6% in 2026 to a $1.339 million median, with unit prices up 5% to $759,112.
  • Sydney and Melbourne are tipped to lead house gains at roughly 7% ($1.924m) and 6% ($1.170m), while Adelaide is forecast to slow to about 4%.
  • Unit growth is expected to cool sharply from 2025’s double-digit pace to around 5% nationally, with Brisbane units the standout at about 7%.
  • Capital-city rents are forecast to reach record levels by the end of 2026, following subdued rental growth through 2025.
  • Momentum is expected to be strongest in early 2026 before affordability pressures moderate gains, a view broadly echoed by major-bank forecasts and by regional data showing a 2.4% value rise in the three months to October 31.