Australian Home Prices Rise the Least in 7 Months

Australia’s Cotality Home Value Index rose 0.8% month-on-month in January 2026, accelerating from a 0.5% increase in the previous month, which had marked the softest pace of growth in seven months. The pickup signaled renewed momentum in the housing market at the start of the year, with price gains broadening across major cities. Prices continued to rise in Brisbane (1.4% vs 1.6% in December), Perth (1.9% vs 1.9%), and Adelaide(1.3% vs 1.9%), while rebounding in Melbourne (0.2% vs -0.1%) and Sydney (0.3% vs -0.1%). On an annual basis, national home values surged 10.2%, quickening from a 9.2% rise in December and underscoring the resilience of Australia’s housing market despite earlier signs of moderation.

Australia’s Cotality Home Value Index rose 0.5% month-over-month in December 2025, easing from 1.0% in the prior month and marking the weakest monthly increase since May. The slowdown underscored the cooling momentum in housing, with affordability pressures, elevated borrowing costs, and softer year-end demand weighing on buyer activity. Growth slowed in Brisbane (1.4% vs 1.7% in November) and Perth (1.9% vs 2.4%), while Adelaide remained steady (at 1.9%). In contrast, values slipped in Melbourne (-0.1% vs 0.3%) and Sydney (-0.1% vs 0.5%). Despite the monthly deceleration, national home values surged 9.2% year-on-year, accelerating from 7.2% in November.

Australia’s Cotality Home Value Index rose 1.0% month-on-month in November 2025, slightly below October’s 1.1% gain, which had marked the fastest monthly increase since June 2023. The modest slowdown suggests the impact of recent interest rate cuts may be easing, while affordability pressures continue to steer demand toward lower-priced properties. All major capital cities recorded gains, with Melbourne up 0.3% and Sydney 0.5%, while Brisbane rose 1.7%, Adelaide 1.9%, and Perth led with 2.4%. On an annual basis, national home values climbed 7.2% in November. Tight housing supply is expected to continue supporting prices in the near term, though longer-term trends will depend on broader economic conditions, RBA cash rate policy, macroprudential measures, and initiatives for first-home buyers.