Market update: Mid-sized capitals to maintain momentum

“Western Australia remains the nation’s standout performer, driven by extreme undersupply and rapid population growth, with annual price gains of around 22 per cent,” Bakos said.

“Queensland continues to surge, fuelled by intense buyer competition and government incentives, with Brisbane homes often selling within one week of the first open home.

“South Australia is also building momentum, supported by election-driven housing incentives and consistent buyer confidence.”

WA

Dynamic Advisory property investment specialist Laura Kolomyjec said the Perth property market had continued to outperform expectations, growing faster than any other market nationwide.

“What we’re seeing right now is the result of a perfect storm – tight supply, strong population growth, and a WA economy that continues to hold its own,” Kolomyjec said.

Kolomyjec said that recent Cotality data showed that dwelling values in Perth rose by 2.3 per cent in February alone, leaving annual growth at around 22 per cent.

“To put that into perspective, the broader Australian market recorded annual growth of 9.9 per cent, highlighting just how strong Perth’s performance has been,” she said.

“Units are also having their moment. Data from Cotality shows unit values have been growing at an even faster pace than houses in recent months, a clear sign that affordability constraints are pushing more buyers to diversify their options.”

Kolomyjec said that if the Perth market were to be summarised by one defining factor, it would be a lack of supply.

While Cotality data showed that listings in Perth were sitting around 48 per cent below the five-year average, Kolomyjec said the data did not provide a complete picture of the market.

“What it really tells us is demand hadn’t disappeared; it’s just competing for what little stock is available,” she said.

“That level of undersupply is exactly what continues to put upward pressure on prices.”

The state’s undersupply problem has been exacerbated by interstate migration and overseas arrivals, and it is labelled the nation’s fastest-growing state by the Australian Bureau of Statistics.

Kolomyjec said that Perth’s rental market was no longer accelerating at the same pace but was still being uplifted by strong fundamentals.

“Overall, Perth continues to stand out as the top-performing capital city in Australia,” Kolomyjec said.

Qld

Exclusive Property Buyers buyer’s agent Fern Walcott said, despite total sales falling by 25.9 per cent, Brisbane had seen a strong start to the year, as demand continued to outpace supply.

“Government first home buyer incentives are fuelling competition in lower-priced segments, with investors and first-time buyers competing,” Walcott said.

“The February rate increase has not appeared to soften buyer demand.”

She said that homes in Brisbane were still benefiting from strong demand, with Cotality data finding that the average days on market were just 21 days in January 2026 compared to 30 days for regional Queensland.

Walcott said that buyers in Brisbane were having to act fast, with properties receiving multiple offers quickly and selling within one week of the first open home.

“First-time buyers wanting to enter the market are feeling the pressure of strong competition. Buyers are making unconditional offers, at times with very little due diligence completed,” Walcott said.

She said that while the Queensland Sellers Disclosure regime had increased transparency in the market, buyers needed to ensure they conducted their own research on a property.

“Risks related to flood, bushfire, or illegal building works are not disclosed in the new Form 2. Buyers need to be prepared to move quickly, without skipping any important steps to remain competitive and well informed,” Walcott said.

Walcott said the state’s rental market remained tight, driving rent rises of 6.4 per cent in Brisbane and 6.5 per cent in regional Queensland.

“Queensland markets are expected to see continued price growth in 2026, driven by increased buyer confidence, government incentives and supply constraints, which don’t appear to be easing soon,” Walcott said.

SA

According to Prospa Property Advisory, real estate agent Andrew Sorensen said the South Australian property market had built momentum in the early stages of 2026, spurred on by policy changes.

“RBA rate cuts lowered borrowing costs, while the SA State Election on 21 March sparked a wave of housing incentives,” Sorensen said.

“These policies – focus on stamp duty relief for downsizers and boosting new home supply – are injecting fresh confidence into buyers and investors amid ongoing undersupply and affordability pressures.”

Downsizers aged 60 and over in South Australia can utilise the state’s incentive to abolish stamp duty, saving more than $100,000.

He said the market had begun to see the effects of the incentives, with an increase in downsizer activity and increased land availability.

“Downsizer activity is rising in established suburbs such as Glenelg and Unley, while new land releases in Mount Barker are accelerating,” Sorensen said.

Sorensen said that recent Cotality data showed that Adelaide’s median house price was $980,815 in early March, with a monthly rise of 1.3 per cent, bringing the capital’s five-year growth to 79.9 per cent.

Additionally, he said that rents had climbed by between 8 and 10 per cent annually and that well-located investment properties delivered attractive yields of 4.5 per cent.

He said that while the state was likely to continue to see strong growth in 2026, a change or delay in government policy could slow that growth.

“Looking ahead, South Australia remains on track for five per cent to seven per cent price growth in 2026,” Sorensen concluded.

“The combination of rate relief and election promises is creating genuine opportunity in South Australia, but success will depend on timely execution and strategic advice.”

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• Brisbane
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