Although housing price growth has moderated across much of the country in recent months, the broader residential property market continues to demonstrate remarkable resilience.
While many capital cities experienced small monthly declines during June, annual performance remains positive in almost every metropolitan market. At the same time, regional Australia has continued to outperform expectations, with many non-metropolitan areas recording stronger annual growth than their capital city counterparts. The latest figures reinforce the growing appeal of regional living as affordability, lifestyle and evolving buyer preferences continue to influence purchasing decisions.
Recent data released by PropTrack indicates that every capital city recorded a slight decline in median house prices during June. Importantly, however, each of these monthly decreases remained below 1%, highlighting that the market is experiencing a period of stabilisation rather than any widespread correction. After several years of strong price appreciation across much of the country, a modest easing in monthly values is widely viewed as a sign that housing markets are transitioning towards more balanced conditions.
Looking beyond the short-term monthly movements provides a much clearer picture of overall market performance. Despite June’s softening, property values in almost every capital city remain comfortably above the levels recorded at the same time last year. This demonstrates that homeowners have continued to benefit from positive annual capital growth, even as higher interest rates and affordability constraints have moderated buyer activity in some locations.
Melbourne stands as the only capital city to record an annual decline. According to the latest PropTrack figures, median house prices across Melbourne are down 1.1% over the past 12 months. While this represents a softer performance than other metropolitan markets, the decline remains relatively modest, particularly when considered against the significant price growth experienced during previous market cycles. A combination of affordability pressures, higher housing supply and more cautious buyer sentiment has contributed to Melbourne’s slower market conditions.
Outside Melbourne, however, capital cities continue to post annual gains despite the recent monthly slowdown. This suggests that underlying demand remains relatively healthy across metropolitan Australia, even as buyers become increasingly selective and borrowing capacity remains constrained by elevated interest rates.
The strongest momentum is continuing to emerge outside the nation’s capital cities. Regional housing markets have once again demonstrated impressive resilience, with almost every regional area recording price growth during June. The only exception was regional Queensland, where property values declined by just 0.1% for the month. Even this slight movement represents only a marginal adjustment rather than a significant weakening in market conditions.
Perhaps more importantly, regional property markets remain substantially stronger than they were twelve months ago. Annual growth has continued across virtually every regional market, reflecting sustained buyer demand and the ongoing attractiveness of locations offering greater affordability than many metropolitan centres. The combination of flexible work arrangements, lifestyle preferences and comparatively lower housing costs has continued to support demand in regional communities well beyond the initial post-pandemic migration trends.
PropTrack Senior Economist Anne Flaherty says regional markets maintained record-high values throughout June and have continued to perform strongly over the past year. Her assessment highlights that the strength of regional housing is no longer simply a temporary response to changing work arrangements, but increasingly reflects deeper structural shifts in buyer behaviour and housing preferences.
Regional Western Australia has delivered the strongest annual performance of any regional market, recording impressive growth of 16.9% over the past 12 months. Strong population growth, robust employment conditions and limited housing supply have all contributed to the state’s exceptional performance. Many regional communities linked to mining, infrastructure and resource industries have continued to attract both owner-occupiers and investors seeking opportunities outside traditional metropolitan markets.
Regional Tasmania also produced outstanding results, with annual property values increasing by 13.6%. The state’s combination of lifestyle appeal, natural environment and comparatively affordable housing has continued to attract buyers from both within Tasmania and interstate. Although growth has moderated from earlier peaks, demand remains sufficiently strong to support healthy annual price increases.
Regional South Australia followed closely with annual growth of 12.7%. Continued population growth, stable employment conditions and relatively affordable housing have helped maintain buyer confidence throughout many regional communities. Demand has remained particularly strong in areas that offer access to major employment centres while retaining lower entry prices than Adelaide.
Regional Queensland also delivered another strong performance despite the slight monthly decline recorded in June. Over the past 12 months, regional Queensland achieved annual growth of 11.5%, highlighting the ongoing popularity of many coastal and inland communities. Continued interstate migration, lifestyle migration and ongoing infrastructure investment have all contributed to maintaining strong housing demand across many parts of the state.
According to Flaherty, affordability is expected to remain one of the most influential factors shaping market performance in the coming months. As housing prices in many metropolitan locations continue to challenge household budgets, an increasing proportion of buyers are likely to broaden their search to include more affordable regional markets. This shift is expected to support ongoing demand outside the major capital cities while providing greater opportunities for first-home buyers, families and investors seeking better value.
The growing strength of regional markets also reflects improvements in transport infrastructure, digital connectivity and employment flexibility. Many buyers no longer view regional living as requiring significant compromises in career opportunities or lifestyle. Instead, regional communities increasingly offer an attractive balance between housing affordability, quality of life and access to essential services.
While market conditions will inevitably vary between individual towns and regions, the broader trend remains clear. Regional Australia continues to establish itself as a major contributor to national housing growth rather than simply an alternative to capital city living. Buyers are increasingly recognising that regional property markets can provide both lifestyle advantages and long-term investment potential.
Although monthly fluctuations are likely to continue as economic conditions evolve, the latest PropTrack data suggests that regional markets remain exceptionally well positioned. With affordability continuing to influence purchasing decisions and demand remaining resilient, many regional areas are expected to play an increasingly important role in Australia’s housing landscape throughout the remainder of 2026 and beyond.
