Property prices continue to defy expectations, with another month of solid growth recorded across the nation. November figures from PropTrack and Cotality show home values rising by around 1% for the month and 7.5% over the past year, reinforcing the strength of buyer demand even in the face of economic uncertainty. This sustained upward momentum highlights the resilience of the housing market and the ongoing competition for limited supply, particularly in cities where affordability and lifestyle appeal are drawing a surge of new entrants.
One of the most notable developments in the current property cycle is the outsized performance of the mid-sized and smaller capital cities, which continue to outpace Australia’s largest metropolitan markets. Based on PropTrack’s latest annual data, Darwin recorded the highest house-price growth at 12.9%, followed by Perth at 11.3%, Brisbane at 11.1%, and Adelaide at 10.2%. These cities have benefited from a unique combination of factors: relative affordability compared with Sydney and Melbourne, elevated interstate migration, lifestyle desirability, and strong local employment conditions.
The major capitals still posted respectable figures, though at a slower pace. Sydney’s housing market grew by 7%, reflecting its ongoing resilience and deep demand base. Hobart recorded 6.8%, Melbourne rose 4.6%, and the ACTfollowed with 3.6%. While growth in these cities has been more moderate, the consistent upward movement underscores a nationwide recovery that has continued for 10 consecutive months.
Unit markets have shown an even more noteworthy shift. As house prices climb out of reach for many buyers, units are increasingly becoming the preferred entry point. Brisbane led unit growth with a remarkable 16.8% annual rise, followed by Perth at 14.2%, Adelaide at 9.7%, Hobart at 6.6%, Sydney at 5.3%, and Melbourne at 3.1%. Only Darwin and Canberra saw slight declines of -0.8%, reflecting specific localised market conditions rather than a broader national trend.
Cotality Research Director Tim Lawless highlights that the divergence between mid-sized capitals and larger cities reflects a buyer base that is prioritising affordability and lifestyle balance. With borrowing power constrained by interest rates, more buyers are looking to markets where their money stretches further. PropTrack senior economist Eleanor Creagh adds that increased borrowing capacity, lower mortgage rates, and strengthened market confidence have continued to propel demand. She notes that competition is intensifying, with many buyers turning to units as their most viable path into ownership.
Looking forward, the outlook remains cautiously optimistic. Continued population growth, ongoing housing shortages, and improved sentiment all point to further gains, although interest-rate settings and construction costs could influence the pace. For now, the market shows no signs of slowing, with both investor and owner-occupier segments actively competing for limited stock.
