Predicted Property Price Growth for 2026
The property market is expected to reach new highs in 2026 with some capital cities looking at double-digit price growth. This news comes in despite forecasts that the RBA cash rate is likely to remain steady or even potentially increase.
The forecasts, released in the latest realestate.com.au Property Market Outlook, predict annual home price growth of between 6-8% nationally, and as much as 10% growth in the already-hot capital cities of Brisbane and Perth.
However, growth in Sydney home prices is expected to slow next year as the prospect of interest rate hikes, rising unemployment and more housing supply put a brake on the market.
A new report from PropTrack showed more modest growth was expected compared to 2025, with Sydney dwelling prices forecast to grow 5-7 per cent over 2026.
This would mean the median dwelling price, based on sales of units, townhouses and houses, would rise at least $62,000 from about $1.23m currently to over $1.3m by the end of 2026.
“In Sydney, 2026 is likely to be a year of more modest gains relative to 2025, with price growth no longer accelerating,” PropTrack’s Property Outlook report said.
Prices in Sydney rose an average of 7 per cent over 2025, according to PropTrack, but most of that growth came over only a few frenzied months in the middle of the year.
This period occurred after the second of three rate cuts was announced in May, which launched a scramble for cheaper houses across middle- and outer-ring suburbs.
There was also considerable growth following the closely timed third RBA cash rate cut in August and the government’s expansion of the First Home Guarantee Scheme in October.
Growth in prices for detached houses was particularly strong, with prices for freestanding houses rising about $120,000 over the year.
Sydney’s housing market has cooled since spring, with revelations of higher than expected inflation in November pouring cold water over previous expectations of further interest rate cuts early next year.
*This article was published by realestate.com. For further information please visit https://www.realestate.com.au/news/sydney-home-price-growth-to-cool-over-2026-proptrack/.