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Median house prices could soar by up to $154k by end of 2026 as buyers pile into spring home buying season
04 Sept 2025
Sydney’s median house price is tipped to climb by more than $150,000 by the end of next year, according to Canstar Research’s analysis of Cotality house prices and Westpac forecasts.
Westpac’s latest property forecast, released this week, estimates that Sydney dwelling prices will rise by a total of 5% this year and a further 8% in 2026.
Assuming these forecasts play out for Sydney house prices, this could see the median Sydney house price rise to $1,675,827 by December 2026, based on Cotality’s Home Value Index and median house price data. This would be the largest increase across all capital cities, in dollar terms.
In Melbourne, Westpac forecasts estimate dwelling prices will rise by 4% this year and 10% next year.
If this unfolds for houses in Melbourne, the median price could rise by over $100,000 from now until the end of next year to $1,059,810.
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| Median house prices – how far could they rise by the end of 2026? |
|||
|---|---|---|---|
| City | Median house price (today) |
Estimated house price (end 2026) |
Difference to today $ |
| Sydney | $1,521,611 | $1,675,827 | +$154,216 |
| Melbourne | $956,305 | $1,059,810 | +$103,505 |
| Brisbane | $1,040,651 | $1,134,066 | +$93,415 |
| Perth | $881,867 | $984,117 | +$102,250 |
| Adelaide | $906,620 | $976,810 | +$70,190 |
| Hobart | $724,097 | $754,691 | +$30,594 |
Source: www.canstar.com.au. Westpac property price forecasts, Cotality Home Value Index, 31 December 2024 and 31 August 2025. Assumes house prices rise in line with dwelling forecasts.
Which cities will see the biggest price growth?
Westpac sees Perth leading the charge this year, in percentage terms, with an 8% gain, whereas ANZ has Brisbane out in front with prices climbing 7.4% in the 12 months to December 2025.
Looking ahead to 2026, the banks are divided on how steep the climb will be in each capital city.
Both banks see Melbourne leading the charge in 2026, with Westpac forecasting a hefty 10% rise, while ANZ is pencilling in a solid 6.6% gain by the end of next year.
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| House price forecasts – Westpac vs ANZ |
||||
|---|---|---|---|---|
| 2025 forecast |
2026 forecast |
|||
| Westpac | ANZ | Westpac | ANZ | |
| Sydney | 5% | 4.60% | 8% | 6.30% |
| Melbourne | 4% | 4.10% | 10% | 6.60% |
| Brisbane | 7% | 7.40% | 8% | 5.60% |
| Perth | 8% | 6.10% | 8% | 5.80% |
| Adelaide | 5% | 4.70% | 6% | 2.70% |
| Hobart | 3% | 2.40% | 4% | 2.10% |
Source: Westpac dwelling price forecasts released 3 September 2025, ANZ housing price growth forecasts released 11 August 2025.
Canstar’s Data Insights Director, Sally Tindall says, “Sydney’s median house price could rise by up to $154,000 by the end of next year if house prices rise in line with the predicted property forecasts.”
“For those already in the market, that’s welcome news for their equity. For those still saving, the deposit hurdle is likely to get a whole lot steeper, not to mention the issues clearing bank’s serviceability tests.
“Melbourne’s median house price is tipped to crack the million-dollar mark. For many first home buyers, that psychological barrier will feel like the goal posts keep moving further away.
“This year, Brisbane and Perth are expected to finish as the standouts, while Melbourne is shaping up as the comeback city in 2026, with double-digit growth on the cards, according to Westpac.
“Even with interest rates heading south, there’s no relief for house hunters if prices keep climbing at this pace. The extra borrowing power from lower rates risks being swallowed whole by rising price tags.
“The danger is, Australians will borrow to the limit, banking on prices continuing to climb. If circumstances change—whether that’s interest rates, job security or the economy—it could leave some households overexposed.
“The more we borrow, the more vulnerable households become to rate rises or shocks to employment.”
This article was reviewed by our Content Producer Nick Whiting before it was updated, as part of our fact-checking process.
