Welcome to the Property Planner’s Monthly Market Update, your comprehensive resource for the latest insights and trends in the real estate and economic landscape!
Stay informed and ahead of the curve with our expert analysis, helping you make well-informed decisions in the ever-evolving property market.
RBA Keeps Cash Rate on Hold this Month
As expected, the Reserve Bank of Australia has kept the cash rate on hold this month at 3.60%.
The story for 2026 is evolving.
The growing consensus is that there will be no more rate cuts in 2026.
For prospective homebuyers, though, we expect market momentum to keep rolling through 2026, even without further rate decreases.
We are already seeing demand supported by first home buyers aiming to make the most of the 5% deposit scheme, alongside a renewed wave of investor activity.
National price growth remains strong
National dwelling values rose by 1% in November, recording the third straight month of growth of 1% or more.
This is not a market losing momentum, it is one still being driven by tight supply and active demand.
Source: Cotality
Most capital cities are at or near price peaks
Combined capital city values, combined regional values and the national index are now all at cycle highs.
Melbourne, Hobart and Canberra are the outliers, still sitting below their previous peaks, while cities like Brisbane, Perth, Adelaide and Darwin continue to post strong monthly gains.
This highlights how uneven conditions remain across the country.
Source: Cotality
Perth continues to defy expectations
Perth recorded another exceptionally strong month, with dwelling values rising by approximately 2.4%.
With median values now sitting just below $915,000, the pace of growth is adding tens of thousands of dollars in value each month.
Strong employment conditions, high household incomes, limited housing supply and a market dominated by detached housing continue to underpin demand.
Despite affordability pressures building, current metrics suggest momentum remains firmly in place, making Perth one of the standout performers nationally.
Source: Cotality
Supply remains the market’s biggest constraint
Total listings continue to fall across most capital cities, with several markets showing double-digit annual declines.
Even where new listings are coming to market, they are being absorbed quickly.
This lack of supply is a key reason prices are continuing to rise despite uncertainty around rates and inflation.
Source: SQM Research
Rental markets remain extremely tight
National rents have risen by around 5% over the past year.
Adelaide stands out as the only capital city where house rent growth shows signs of easing, after a long run of strong performance.
Vacancy rates remain near record lows at approximately 1.5% nationally, highlighting the ongoing imbalance between rental supply and demand.
Source: Cotality
Investor activity is reshaping competition
With first home buyers constrained by affordability and borrowing limits, investors are increasingly shaping market dynamics.
Higher equity levels, stronger borrowing power and a willingness to act quickly are giving investors an edge.
Source: ABS
Policy risk is quietly building
As investor lending continues to rise, attention is gradually turning back to macroprudential settings.
Investor lending has climbed to around 40% of total mortgage demand for purchases, rising from 37.1% in December 24.
Regulatory intervention from APRA followed when investor lending pushed into the 45-46% range in 2015, a level that remains a clear reference point for policymakers.
While current conditions are more complex, particularly given extremely tight rental markets, the direction of investor credit growth is a key variable regulators monitor closely.
For borrowers and investors, this is a developing risk that warrants attention over the next 12 to 18 months.
Source: ABS
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