Australia’s real estate market is heating up once again, with home prices on a steep rise and predictions of a new property boom in the near future. After months of steady growth, experts are now eyeing 2026 for a real estate explosion. Whether you’re a first-time buyer or a seasoned investor, now might just be the time to act.
Record Growth Despite Interest Rate Pauses
September 2025 saw national home prices climb for the ninth month in a row, adding a remarkable $54,100 to the median property value. This surge comes as the Reserve Bank of Australia (RBA) paused its interest rate hikes, maintaining the cash rate at 3.60%. The move is expected to further boost buyer confidence, encouraging more people into the market.
Across Australia, capital cities are leading the charge. In Sydney, home prices have soared to new heights, while Hobart’s property market enjoyed a significant 0.8% increase in September alone. Other cities like Darwin and Brisbane are also experiencing impressive growth, with annual increases of 11.4% and 10.2%, respectively.
But it’s not just the cities seeing a rebound. Regional areas are also benefiting from the broader trend, with home prices hitting new peaks, rising 7.1% year-on-year. These areas, once considered secondary markets, are now hotbeds of activity, as demand increases and more people look to escape the city bustle.
Real Estate Boom Spreads Across Australia
The recovery in the property market isn’t isolated to one region or sector. Every state and territory recorded monthly price growth in September, signaling a broad-based recovery. Notably, Hobart and Sydney were among the top performers, but markets in Melbourne, Adelaide, and Perth are also showing signs of life. It’s clear: Australia’s housing market is back, and it’s back strong.
What’s fueling this growth? It’s a combination of factors. Lower interest rates have reduced mortgage repayments, making it easier for buyers to afford homes. The recent expansion of the Home Guarantee Scheme in October is expected to add even more fuel to the fire, helping first-time buyers get a foot on the property ladder. Additionally, stock on the market remains constrained, meaning demand continues to outpace supply in many areas.
The Road Ahead: A Bright Future for Buyers and Sellers
Despite ongoing affordability challenges, experts believe the property market will continue its upward trajectory. REA Group Senior Economist Eleanor Creagh predicts the market will maintain its momentum throughout spring, with further gains likely. “While affordability pressures remain, the series of interest rate cuts earlier this year, combined with improved sentiment, will keep upward pressure on prices,” she said to Realestate.
Looking further ahead, the outlook for 2026 is even brighter. While there are still some bumps in the road, like affordability concerns and limited stock, the overall sentiment in the market is one of optimism. The recovery from late 2024’s sluggish period is evident, and now the market is primed for a full-blown boom.
The Australian property market is in the midst of a strong and steady recovery. With interest rates holding steady and more affordable buying options on the horizon, 2026 is shaping up to be a massive year for real estate. Whether you’re buying or selling, it’s clear that the Australian property market is about to enter a new phase — and it might just be the perfect time to jump in.
