Australian Property Prices Set to Reach New Heights in 2026

Understanding the Implications for First-Home Buyers

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Recent analyses indicate that Australian property prices are poised to reach unprecedented levels in 2026, presenting significant challenges for first-home buyers.

According to a report by ABC News, Domain forecasts that median house prices in Sydney could rise by 7% to $1.83 million by June 2026, while Melbourne's median house price is expected to increase by 6% to $1.1 million.

This trend is largely driven by strong housing demand and interest rate cuts implemented by the Reserve Bank of Australia (RBA).

Similarly, KPMG's projections suggest a nationwide surge in house prices, with an average increase of 7.7% anticipated for 2026. Perth is expected to lead this growth with a forecasted rise of 12.8%, followed by Brisbane at 10.9% and Darwin at 10.5%. These increases are attributed to population growth and supply constraints in these regions.

For first-home buyers, these escalating prices exacerbate existing affordability issues. The need for larger deposits and higher loan amounts can make entering the property market increasingly difficult. Prospective buyers are advised to explore various government grants and schemes designed to assist first-time purchasers. Additionally, considering alternative housing options, such as units or properties in less competitive markets, may provide more accessible entry points.

Staying informed about market trends and seeking professional financial advice are crucial steps for those aiming to navigate the evolving property landscape in 2026.

Published:Thursday, 26th Feb 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Victoria's Unit Market Set to Outperform Houses in 2026

26 Feb 2026: Paige Estritori

Victoria's unit market is projected to experience substantial growth in 2026, potentially outpacing the price increases observed in the housing sector. Data from the Real Estate Institute of Victoria indicates that from October to December 2025, the median price of Melbourne units rose by 2% to $656,500, surpassing the 1.8% growth seen in house prices during the same period. - read more

Interest Rate Increases Poised to Temper Property Price Growth in 2026

26 Feb 2026: Paige Estritori

As 2026 approaches, the Australian property market is expected to experience a slowdown in price growth due to anticipated interest rate hikes. According to ABC News, Cotality's national Home Value Index rose by 0.8% in January 2026, with mid-sized capital cities leading the gains. However, the pace of growth is projected to decelerate as the Reserve Bank of Australia (RBA) considers increasing interest rates to address rising inflation. - read more

Australian Property Prices Set to Reach New Heights in 2026

26 Feb 2026: Paige Estritori

Recent analyses indicate that Australian property prices are poised to reach unprecedented levels in 2026, presenting significant challenges for first-home buyers. According to a report by ABC News, Domain forecasts that median house prices in Sydney could rise by 7% to $1.83 million by June 2026, while Melbourne's median house price is expected to increase by 6% to $1.1 million. - read more

Surge in First-Home Buyer Activity Following Expansion of 5% Deposit Scheme

18 Feb 2026: Paige Estritori

The Australian Government's recent expansion of the 5% deposit scheme has catalyzed a notable surge in first-home buyer activity, particularly within the affordable housing segment. This policy adjustment aims to make homeownership more accessible by allowing eligible buyers to enter the market with a minimal deposit, thereby reducing the financial barriers traditionally associated with purchasing a home. - read more

Click for more Finance News

Home Loan Articles

Your First Home: Steps to Saving for a Deposit

In today's rapidly evolving Australian housing market, many prospective homebuyers find themselves confronted with a daunting challenge. Home prices have been on the rise, particularly in major cities like Sydney and Melbourne, creating a competitive environment for those looking to secure their first property. This situation can seem overwhelming, but with careful planning and strategic saving, prospective homeowners can successfully navigate this landscape. - read more

Why Your Credit Score Matters When Buying Your First Home

Buying your first home is an exciting and significant milestone in life, especially for young Australians. The journey from dreaming about home ownership to holding those keys can feel both thrilling and daunting. With property prices fluctuating and the market offering numerous opportunities, understanding the dynamics of purchasing a home in today's Australian housing market is crucial. - read more

Budgeting Blunders to Avoid When Buying Your First Home

Buying your first home is an exciting milestone, but it can also be a daunting experience, especially for young Australians. The journey is filled with challenges ranging from navigating the real estate market to securing a mortgage that won't stretch your finances too thin. - read more

First Home Buyers: Mastering the Jargon of Home Loans

Buying your first home is a thrilling milestone, filled with anticipation and the promise of a new chapter in your life. For many Australians, it's a dream to own a place they can truly call their own. However, alongside the excitement, comes the reality of navigating the complex property market, which can be daunting for first-time buyers. - read more

Knowledgebase

Payday Loan:
A short-term, high-interest loan, typically due on the borrower's next payday.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.