After a lengthy run of rising prices in 2025, some pundits are tipping property prices could keep climbing in 2026. Today we’ll take a sneak peek inside the experts’ crystal ball – and what it could mean for your home buying plans.

2025 was a great year for home owners, though a little more challenging for buyers, with property prices climbing 8.6% nationally.

And it seems there could be plenty of steam left in the market to push prices higher in 2026 – and again in 2027.

A new report by KPMG suggests house prices across Australia could climb another 7.7% this year alone.

Of course, a lot can happen to impact property prices over the next 12 months.

So, how might prices perform in your patch?

Below is a rundown of KPMG’s forecasts for property price growth across each of the major capitals.

Sydney: the median house price could approach $2 million

Sydney house prices are being predicted to rise 5.8% in 2026, with further growth of 5.7% in 2027.

Apartment prices are forecast to increase 5.3% this year, backed up by a 4.0% rise next year.

With Sydney’s median house price currently sitting at $1.62 million, if KPMG’s forecast proves correct, the median value could top $1.81 million by the end of 2026.

Brisbane: the big gains may not be over yet

Last year saw Brisbane home values rise 14.6% – some of the biggest gains nationally, second only to Perth.

KPMG believes there’s plenty of fuel left in the tank, with house prices expected to rise 10.9% in 2026, and 8.9% in 2027.

Meanwhile, the price of Brisbane apartments is forecast to rise 7.8% for 2026, followed by growth of 4.9% in 2027.

Melbourne: price growth expected to outpace 2025

With a median residential property value of $854,000, Melbourne is now one of Australia’s more affordable capital cities.

However, prices look set to climb, with forecast house price growth of 6.8% in 2026, and then rising another 7.3% in 2027.

The next 12 months is expected to see apartment values rise 7.3%, with further gains of 5.5% forecast for 2027.

Canberra: moderate prices growth expected

Property prices in the nation’s capital rose just 4.2% in 2025, and moderate growth is expected to continue this year.

KPMG is tipping house prices to rise 4.7% in 2026, followed by growth of 3.3% next year.

Canberra apartments are expected to increase in value by 4.9% over the next 12 months, and then climb 3.6% in 2027.

Hobart: softer growth tipped for 2026

After rising 7.8% over the past 12 months, property prices in Hobart could be poised for softer growth in 2026.

House prices are expected to increase by 5.4% this year, while Hobart unit values are tipped to rise 5.1%.

2027 may see price growth continue, with house and apartment values expected to rise 4.1% and 4.0% respectively.

Adelaide: the run of price growth may continue

Strong price growth in recent years has taken Adelaide’s median home price to $908,000.

This year, KPMG is expecting the run of growth to continue, with house prices forecast to rise by 8.2%, with a further increase of 3.3% in 2027.

Unit prices are tipped to climb 6.6% this year, with growth of 3.8% in 2027.

Perth: another year of big gains

Perth’s property market was a standout in 2025, notching up price growth of 17.2%.

According to KPMG, the WA capital is set to see double-digit price growth again in 2026, with house prices expected to rise 12.8%, and

apartment values forecast to increase by 11.6%.

Price growth may be more modest in 2027, with house and apartment prices expected to rise 5.1% and 3.9% respectively.

Darwin: double-digit growth may lie ahead

As Australia’s most affordable capital, with a median home price of $578,000, Darwin prices look set to rise over the next two years.

House prices could increase by a hefty 10.5% in 2026, while apartment prices could see even bigger gains of 13.4%.

2027 should see slightly softer price growth across both houses (up 6.8%) and units (9.3%).

What’s likely to drive prices higher?

KPMG is not alone in expecting property prices to climb this year.

Research group Cotality doesn’t offer price predictions, but it is expecting “modest” price growth through 2026.

The common assumption underpinning these predictions is that two key forces are likely to push prices higher – tight supply of new homes coupled with strong buyer demand.

Although housing construction is increasing, it is unlikely to keep pace with the estimated need for 240,000 new homes needed annually.

Buyer demand has been heavily influenced by three rate cuts in 2025, and the expansion of the first home buyer 5% Deposit Scheme in late 2025.

The upshot is an 18% rise in demand for home loans in December 2025 compared to the previous December.

Time to review your buying plans?

Of course, forecasts are just that – predictions – and plenty could change over the year ahead.

Even so, if you’re holding off buying in the hope of prices softening, you could be left disappointed, and possibly even out of pocket.

Now is a great time to talk to us to find out if you’re home loan ready. We’ll help you work out your borrowing capacity, so you can start working to a house-hunting budget.

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