Early-year data confirms that residential property values are still moving upward, with January delivering price growth across most major metropolitan markets.
While the pace varies depending on the source, both leading data providers agree that housing values continue to build on the gains recorded over the past year.
PropTrack reports national home values increased by 0.2% in January, while Cotality recorded a stronger monthly lift of 0.8%. Despite the difference in methodology, both datasets point to the same outcome. Momentum has carried through the past twelve months, reinforcing the view that demand remains resilient even as affordability pressures persist.
Performance continues to differ sharply between cities. Smaller capital markets are again leading the growth cycle, while Sydney and Melbourne have shown signs of softening in recent months. According to PropTrack, Perth remains one of the standout performers. While values there sit below previous peaks, the city recorded the strongest annual growth among capital city house markets. Median house prices rose by 16.9% over the past year, while unit values surged by 21.1%.
Other capitals are also delivering strong results. Darwin’s median house price increased by 15.5% over the same period, followed by Adelaide with growth of 13.6% and Brisbane at 13.1%. These figures highlight the continued shift toward markets offering relative affordability and strong rental demand.
Senior Economist Angus Moore notes that the strength of smaller capitals reflects broader economic conditions. Unemployment remains historically low, supporting household confidence and borrowing capacity. At the same time, limited housing supply continues to constrain choice, keeping upward pressure on prices even as interest rates remain elevated.
Supply constraints are becoming more pronounced. Cotality research director Tim Lawless reports that the number of homes advertised for sale is 19% lower than at the same time last year and 25% below the five-year average for this time of year. Fewer listings mean more competition, particularly in markets where affordability remains within reach.
Lower-priced segments are attracting the greatest competition. Lawless points out that demand is most intense where buyers perceive value, including first home buyers, investors, and owner occupiers seeking alternatives to premium suburbs. Growth at these price points is being fuelled by multiple buyer groups chasing the same limited stock.
The January figures reinforce a broader theme playing out nationally. While headline growth may appear modest in some markets, the underlying conditions remain supportive. Tight labour markets, constrained supply, and population growth continue to underpin demand, particularly outside the traditional big-city strongholds.
