Despite rising interest rates and growing concerns about affordability, Australian home prices are kicking off 2026 with a surprising surge. In January alone, home values increased by 0.8%, continuing a pattern that has left both buyers and sellers wondering what\u2019s next. While cities like Sydney and Melbourne are feeling the weight of slower growth, smaller cities are seeing significant jumps.<\/p>\n\n\n\n
In January, home values across Australia saw an uptick of 0.8%, which is higher than the 0.6% increase seen in December 2025. While this might seem like a good sign for the property market, it\u2019s not quite as clear-cut as it appears. The Sydney and Melbourne markets \u2014 which usually lead the way \u2014 had only modest growth of 0.2% and 0.1%, respectively. This suggests that the country\u2019s largest markets are starting to show signs of slowing down.<\/p>\n\n\n\n
On the other hand, mid-sized capitals like Perth, Brisbane, and Adelaide are experiencing strong growth. Perth in particular had the biggest jump, with a 2.0% increase in January alone. Brisbane and Adelaide were slightly slower, but still posted solid gains of 1.6% and 1.2%, respectively, reports Savings<\/a>. These cities continue to benefit from higher demand, especially from buyers who are priced out of Sydney and Melbourne.<\/p>\n\n\n\n