May 4th, 2026
Where prices are still rising and where they’re slowing
Market insights
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Australia’s housing market hit pause in May, with the national median dwelling value sitting at $941,864, according to the latest data from Cotality.
It reflects a broader shift that has been building for some time. While some cities continue to record strong growth, others are experiencing declining values as affordability constraints, softer demand and higher supply levels weigh on conditions.
With the Reserve Bank keeping the cash rate on hold at 4.35% at its June Board meeting, many buyers are continuing to navigate a higher interest rate environment, while benefiting from increased choice in some markets.
“We are continuing to see multi-speed conditions across Australia’s housing sector, with Perth and Melbourne at opposite ends of the spectrum,” Cotality research director, Tim Lawless, said.
“The past five years have seen these cities diverge sharply, with Perth values up a stunning 91.4% while Melbourne home values are only 3.3% higher since May 2021.”
Softer market conditions in Sydney, Melbourne and Canberra
Sydney, Melbourne and Canberra recorded value declines in May, with the most significant declines continuing to come from Australia’s two largest housing markets.
In May, Sydney dwelling values fell by 0.9% and are now 2.3% higher annually, reaching a median value of $1,282,020. Melbourne prices slipped by 0.8% over the month, to a median of $812,621.
Meanwhile, the median value of Canberra homes is at $890,555, after recording a monthly decline of 0.2%. It suggests the softer conditions seen in the larger east coast markets may be extending to the nation’s capital.
While annual growth remains in positive territory across all three markets, recent results point to softer demand conditions and a market that is becoming increasingly favourable to buyers. An increase in available listings is giving buyers more choice and greater negotiating power, contributing to softer selling conditions across these markets.
Perth and Darwin leading the country’s housing growth
At the other end of the spectrum, Perth and Darwin continue to deliver some of the strongest results in the country.
Perth remained the strongest-performing capital, with dwelling values rising by 1.5%. The median now sits at $1,050,354, after tipping past the $1 million mark back in March.
Darwin matched Perth’s monthly growth rate, with annual growth at 20.3%. It remains the most affordable capital city to buy a home, with a median price of $634,368.
Brisbane, Adelaide and Hobart show positive momentum
Brisbane also continued its strong run, recording growth of 0.9% for the month and 19.1% annually. At $1,126,149, Brisbane’s median home value is second only to Sydney among the capital cities.
Matching Brisbane’s growth, the market in Hobart picked up in May, from a more modest 0.2% increase the month before. This took annual growth to 9.3% and the median price to $752,398.
Adelaide’s growth eased to 0.5% in May, bringing its median up to $950,703, though values have lifted by 12.3% compared to a year ago.
What this means for you
For buyers, the latest figures highlight the importance of understanding local market conditions rather than relying on national headlines.
In Sydney, Melbourne and Canberra, higher listing volumes and softer demand may create more opportunities to negotiate. In stronger markets such as Perth, Brisbane and Adelaide, competition remains more intense, but growth is beginning to moderate compared to previous peaks.
Whether you’re looking to enter the market, upgrade or invest, taking the time to research local trends and understand current buyer conditions can help you make more informed decisions.
Disclaimer: The information enclosed has been sourced from Cotality and the RBA and is provided for general information only. It should not be taken as constituting professional advice.
PropertyMe is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
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