Overview
- Cotality reports national dwelling values rose 8.6% in 2025, adding about $71,400 to the median, while December saw the smallest monthly gain in five months at 0.7%.
- Sydney and Melbourne posted their first monthly declines since January last year, even as other capitals advanced, with the strongest annual gains in Darwin, Perth and Brisbane.
- Market confidence has softened as expectations shift toward no near-term cuts and a possible RBA increase at the early February meeting, according to banks and analysts.
- Most forecasters still project mid‑single‑digit price growth in 2026, supported by low listings and limited new construction that continue to constrain supply.
- Rental pressures persisted with national rents up about 5.2% in 2025, and tougher limits on high debt-to-income home loans are set to tighten credit next month.