We hope this newsletter finds you refreshed and recharged after the festive season. As the curtain closes on 2025, Australia’s real estate market has experienced some notable shifts that are shaping the landscape ahead. Let’s take a look at what’s been happening.
Australia’s property market is clearly cooling, with national dwelling values rising just 0.7% in December, the smallest monthly increase in five months. Sydney and Melbourne both recorded slight declines of 0.1%, while Brisbane rose 1.6%, and Adelaide and Perth increased 1.9%, highlighting continued strength in local markets despite the national slowdown.
Over the course of 2025, prices still delivered solid growth, led by Perth (+15.9%), Brisbane (+14.5%) and Adelaide (+8.8%), while Sydney (+5.8%) and Melbourne (+4.8%) lagged behind.
Looking ahead, 2026 is shaping up to be a softer year. Higher-for-longer interest rates, affordability constraints and cost-of-living pressures are weighing on buyer confidence, creating a two-speed market where lower-priced properties continue to outperform. Regional markets remain more resilient, with values up 9.7% over the year, outperforming capital cities.
On the rental front, vacancy rates have edged up slightly to 1.6%, but remain near record lows. Rents rose 5.2% in 2025, with further rental pressure expected in 2026 due to ongoing supply shortages.
As always, here’s to your continued success in 2026.
Cheers
Ryan
