Introduction
Australia’s property market is showing no signs of cooling. According to the latest house price forecasts, buyers may face much steeper entry points by the end of 2026. Sydney, Melbourne, and Brisbane are all set for significant growth, with Sydney’s median house price tipped to surge by more than $150,000.
For investors, this could mean higher equity. For first home buyers, the deposit hurdle just moved further away.
Median House Price Forecasts by City
Based on Westpac forecasts and Canstar’s analysis, here’s how much house prices could rise across major cities by December 2026:
| City | Current Median Price | Estimated 2026 Price | Difference ($) |
|---|---|---|---|
| Sydney | $1,521,611 | $1,675,827 | +$154,216 |
| Melbourne | $956,305 | $1,059,810 | +$103,505 |
| Brisbane | $1,040,651 | $1,134,066 | +$93,415 |
| Perth | $881,867 | $984,117 | +$102,250 |
| Adelaide | $906,620 | $976,810 | +$70,190 |
| Hobart | $724,097 | $754,691 | +$30,594 |
Source: Canstar, Westpac property price forecasts, Cotality Home Value Index
Which Cities Will See the Strongest Growth?
- 2025: Perth (8%) and Brisbane (7.4%) are forecast to lead the pack.
- 2026: Melbourne is tipped for a strong comeback, with Westpac projecting a 10% rise and ANZ predicting 6.6% growth.
- Sydney: Still expected to see the largest dollar increase, making it one of the toughest housing markets for new buyers.
Expert Commentary
Sally Tindall, Canstar’s Data Insights Director, highlights both opportunity and risk:
“Sydney’s median house price could rise by up to $154,000 by the end of next year if forecasts prove correct. For homeowners, that’s welcome equity. But for those still saving, the deposit hurdle is becoming even steeper.”
She also warned that while interest rates are heading lower, any increase in borrowing power could be cancelled out by rapidly rising property prices.
What This Means for Buyers and Investors
- Homeowners: Expect growing equity, especially in Sydney and Melbourne.
- First Home Buyers: Brace for tougher affordability as deposits climb.
- Investors: Rising demand may boost long-term capital growth, but higher prices could mean stretching borrowing capacity.
The property market outlook for 2025–2026 signals strong growth across Australia. With Sydney, Melbourne, Brisbane, and Perth tipped for the largest gains, buyers will need to act strategically, while investors can expect equity boosts.
The big question remains: will wages and affordability keep pace with rising house prices?
How Positive Income Properties Can Help
With median house prices forecast to climb across every major city, finding the right property strategy has never been more important.
At Positive Income Properties, we help investors and homebuyers:
- Identify high-growth suburbs before prices peak.
- Access affordable property opportunities that still deliver strong rental yields.
- Structure purchases to improve cash flow and borrowing power, even as banks tighten lending.
- Build a portfolio designed to withstand market shifts — from interest rate cuts to price surges.
Our goal is simple: to help you achieve a positive income property portfolio that grows in value while putting money back in your pocket.
👉 Whether you’re a first-time investor or expanding your portfolio, Positive Income Properties can guide you through the 2025–2026 property market with confidence.
📞 Contact us today to explore tailored strategies for your goals.
