Australia’s Property Market Reaches $12.6 Trillion with Mixed Trends

Australia's residential property market reached a total value of $12.6 trillion in March 2026, with national dwelling values up 2.1% for the quarter and 9.9% for the year, the fastest annual pace since June 2022. That headline figure hides sharp differences between markets, with Brisbane and Perth still recording strong growth while Sydney and Melbourne values ease back from recent highs. For property owners and investors, the practical takeaway is that a single national average tells you very little about what is happening in any one city or region.

Key Market Trends

Value Growth and Fragmentation

The Australian property market is witnessing a complex tapestry of performance across different regions. While some capital cities like Sydney and Melbourne face ongoing declines, regional markets have demonstrated greater resilience. Notably:

• Brisbane leads the charge with an exceptional 19% annual growth, reaching unprecedented highs.
• Perth also showcased strong performance, surging 7.3% quarterly.
• Meanwhile, Sydney and Melbourne have recorded a decline of -0.4% and -0.9% respectively from their recent highs.

This fragmentation is largely influenced by factors like migration and affordability, with regional markets benefitting from an influx of buyers drawn to lower price points and lifestyle opportunities.

Supply-Demand Imbalance

Since the first quarter of 2020, certain states have experienced the strongest growth in property values, particularly Perth and Brisbane. This surge is largely attributable to a persistent supply-demand imbalance. Here are the key points:

• Dwelling completions in these states have lagged behind population growth, resulting in competitive seller’s markets.
• Buyers in these regions are increasingly competing for limited stock, pushing prices higher.

Sales and Transactions

Despite the remarkable growth in dwelling values, the total number of homes sold has experienced a slight decline, with approximately 559,457 homes sold annually. This figure represents a decline of 1.9% compared to the previous year but is still 5.6% above the five-year average. The quarterly trends, however, show signs of weakening, with homes selling at a median of 30 days on the market, down from 33 days in Q1 2025, although this has increased slightly into early 2026 due to seasonal factors and reduced demand.

Market Indicators

Vendor Discounting and Auctions

Interestingly, vendor discounting remains close to record lows, indicative of strong market conditions. However, there has been a slight loosening in Q1 2026, driven by rising inventory levels:

• At the peak of auction clearance rates, figures reached 72% in late September 2025, but have since dropped below the decade average, registering at 52.7% in late March 2026—the lowest since July 2022.

Broader Context

The Australian residential property market faces a set of complex challenges, including:

• An estimated undersupply of 200,000-300,000 dwellings.
• Population growth that consistently outpaces completion rates.
• High price-to-income and rent ratios, with properties nationally deemed 30% overvalued.

Despite these hurdles, the market remains resilient, with low mortgage arrears and expectations of 5-6% price rises in 2026 as interest rates are anticipated to fall.

City and Regional Highlights

Performance across Australian regions reflects significant variability. Below are recent highlights:

City/Region Highlights (Recent Quarterly/Annual)	Performance
Perth	+7.3% quarterly
Brisbane	+19% annual, record highs
Melbourne	-0.9% from November high
Sydney	-0.4% recent
National	+2.1% quarterly, +9.9% annual

The Path Forward

The Australian property market is anything but homogeneous. While overall values are increasing, specific areas present opportunities and challenges influenced by various factors. Undervalued segments, such as units in Perth and Melbourne, offer investment prospects despite ongoing affordability pressures.

As we move through 2026, stakeholders, including property investors, buyers, and policy-makers, must navigate this multifaceted environment effectively. Understanding the distinct regional dynamics will be crucial in making informed decisions that harness the potential of Australia’s burgeoning residential markets.

For more insights and information on property trends in Australia, stay updated as we continuously monitor the evolving landscape of this crucial economic sector.

Check out our website for more information.

Disclaimer: This article contains general information only and does not constitute financial, legal or tax advice. It has been prepared without regard to your objectives, financial situation or needs. Tax and superannuation laws change frequently, and the information in this article may not reflect the current law or may become inaccurate over time. Before acting on anything in this article, you should consider its appropriateness to your circumstances and seek advice from a registered tax agent or qualified adviser.