Australian home prices are set to surge as interest rates fall. ANZ forecasts +5% growth by 2025 and +5.8% in 2026. Sydney and Melbourne are bouncing back, while Brisbane, Perth, and Adelaide cool. With supply tight and borrowing power rising, buyers and investors must act now to secure growth opportunities.
show moreBuying property isn’t just about timing the market — it’s about understanding the signals and acting with strategy. And right now, the signals couldn’t be clearer: Australia’s big banks are revising their forecasts upwards, predicting stronger home price growth in the next 18 months than anyone expected earlier this year.
ANZ’s newly released Australian Housing Outlook now forecasts combined capital city property prices will rise +5% by the end of 2025 and +5.8% by the end of 2026. That’s a sharp shift from February’s projection of just +0.9% this year.
For investors and buyers, this isn’t just a headline. It’s a call to action.
Byers Learn Why Property Prices Are Surging in 2025
Property price growth doesn’t happen in a vacuum. Three forces are driving this shift:
1. Interest Rate Cuts Unlock Borrowing Power
The RBA has cut rates three times this year — February, May, and August — and buyers can already feel the difference. When borrowing capacity goes up, so does competition at auctions. Historically, when rates fall, property prices rise. In fact, capital city prices have increased 6.1% on average in the first year of every rate-cutting cycle since 1996.
2. Stronger Incomes and Lower Inflation
With inflation easing and wages growing, Australians aren’t just spending less on groceries and bills — they’re saving faster for deposits. This is giving more households the firepower to enter the market sooner.
3. Supply Still Tight
New listings are down 3.3% YoY across capital cities, meaning fewer homes are hitting the market. More buyers + fewer properties = price pressure. Act quickly to take advantage of this affordability and supply crisis.
City-by-City Property Price Growth Forecasts Guidance for Buyers: Median Prices & Projected Values
| City | Current Median House Price | 2025 Growth Forecast | 2026 Growth Forecast | Estimated 2026 Median |
|---|---|---|---|---|
| Sydney | $1,228,435 | +4.6% | +6.3% | ~$1,305,000 |
| Melbourne | $952,339 | +4.1% | +6.6% | ~$1,015,000 |
| Brisbane | $1,019,865 | +7.4% | +5.6% | ~$1,075,000 |
| Adelaide | $895,726 | +4.7% | +2.7% | ~$920,000 |
| Perth | $869,689 | +6.1% | +5.8% | ~$920,000 |
| Darwin | $641,997 | +14.3% | +6.1% | ~$750,000 |
What This Means for Buyers & Investors
Sydney and Melbourne are staging a comeback after sluggish 2024 performance. With incremental gains in 2025followed by stronger momentum in 2026, these cities are regaining growth leadership.
On the other hand, Brisbane, Perth, and Adelaide may slow slightly in 2026—but their affordability combined with upward trends still makes them competitive markets.
Darwin stands out, offering very high growth and strong affordability—ideal for investors targeting long-term upside before the rest of the capital city curve catches up.
What This Means for Home Buyers
If you’re a first-home buyer, the window is shifting quickly:
- Borrowing power is rising: Rate cuts mean you can borrow more today than six months ago.
- Prices are climbing again: Delay too long, and your dream suburb may slip out of reach.
👉 The smart move? Secure now, get professional guidance on where to buy, before the next leg of growth prices you out.
What This Means for Property Investors
For investors, it’s the sweet spot where timing meets fundamentals:
- Rental yields are strong: Chronic undersupply is keeping rents elevated.
- Equity growth is back: Major capitals are bouncing off the bottom, creating momentum.
- Market cycles are converging: The “two-speed” dynamic is fading, spreading opportunities across more cities.
👉 If you’re building or scaling a portfolio, this is the data-backed moment to act. Pick the right suburb, and you’re not just buying a property — you’re buying the next 5 years of growth.
Why This Matters
- Timing is everything: Before price growth accelerates, there’s a real opportunity to lock in value at today’s prices.
- Borrowing power is rising: With interest rate cuts, buyers can bid more competitively in auctions and negotiations.
- Supply is limited: Listings dropped 3–4% YoY, meaning price competition is already intensifying.
The Opportunity: Act Before the Next Surge
Here’s the truth: property markets don’t wait. The gap between “affordable today” and “out of reach tomorrow” is closing quickly. Whether you’re buying your first home or your fifth investment, the current cycle presents a rare chance to lock in future gains.
👉 Ready to turn this data into action? Our team helps buyers and investors identify the right property, negotiate smarter, and build long-term wealth with our proven CLEAR Strategy.
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