March 31st, 2026
March 2026 housing update: slower growth, wider gaps between markets
Industry News
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Key points
- Property prices are up nationally by 0.3% in April but growth is slowing overall.
- Perth is still leading the way while Sydney and Melbourne are pulling results down.
- Buyers are shifting to where they can still afford to get in, with regional markets pushing ahead of capital cities.
Australia’s housing market continued to grow in April, but the pace is easing and the gap between capital cities and regional markets is becoming more noticeable.
Nationally, dwelling values rose by 0.3% over the month and are now 9.8% higher year-on-year, with a median value of $940,048.
Across the combined capitals, growth came in at 0.2% for April, while regional markets are pulling further ahead, lifting by 0.9%.
When comparing the annual performance, the gap between regions and capitals is at 2.9 percentage points, up from 1.5 percentage points in December 2025.
This gap is shaping a market that looks very different depending on where you are, with momentum shifting toward more affordable cities and regional areas. Across the capitals, this is playing out in three distinct ways.
The momentum markets: Perth, Brisbane and Darwin
These markets continue to lead the country, combining strong monthly gains with standout annual growth. Affordability compared to Sydney and Melbourne, steady population inflows and local economic drivers are keeping demand elevated.
Perth remains the clear standout. Values rose 2.1% in April, pushing annual growth to 26.0% and lifting the median to just over $1 million. Even within a strong cohort, Perth is operating at a different pace.
Brisbane is not far behind, with values up 1.2% over the month and 19.7% annually, taking the median to $1.1 million. Darwin is following a similar trajectory, recording a 1.3% monthly rise and 19.6% annual growth, with a median of about $619,000.
While growth is easing slightly across the country, these cities are still showing clear momentum, underpinned by relative value and sustained demand.
The steady climbers: Adelaide, Hobart and Canberra
This group reflects a more balanced phase of the cycle. Growth is continuing, but at a measured and consistent pace.
Adelaide is leading within this tier, with values rising 1.1% in April and 12.2% over the year, bringing the median to about $944,000. Hobart saw a modest 0.2% lift in April and 8.5% annual growth, while Canberra held flat over the month (0.0%) with 5.6% annual growth. Median values sit at about $744,000 and $898,000 respectively.
There are no signs of decline here, but equally, no signs of overheating. These markets are defined by stability and consistency rather than rapid acceleration.
The hesitators: Sydney and Melbourne
Australia’s most expensive markets are showing the clearest signs of strain. Both recorded a 0.6% decline in April, making them the weakest performers nationally.
Sydney remains 4.2% higher year-on-year with a median of $1.2 million, while Melbourne has recorded just 2.0% annual growth, the lowest of all capitals, with a median of about $822,000.
Affordability constraints, borrowing limits and greater sensitivity to interest rates are weighing more heavily here. These factors are dampening demand and slowing momentum relative to the rest of the country.
Buyers flock to where they can still afford to buy
Right now, affordability is the biggest drawcard for buyers. Lower-priced properties are outperforming in every capital city, helped by tighter borrowing limits and ongoing first home buyer incentives.
We’re also seeing this play out across the country. Regional markets continue to outperform the capitals, and notably, no regional sub-markets have recorded a decline this year so far.
The bigger picture is clear. Growth isn’t being led by the traditional powerhouses anymore. It’s shifting to markets that still feel within reach, with Perth leading the charge. For agencies, it’s a clear signal that opportunity is shifting, and strategies need to move with it.
