Australian property values rose a strong 8.6% in the 12 months to December 2025 — the fastest annual growth since 2021 — led by double-digit gains in Darwin, Brisbane and Perth, even as Sydney and Melbourne recorded modest declines in December amid renewed interest-rate concerns.
Cotality data shows Darwin topped the capitals with an 18.9% annual increase, followed by Perth (15.9%) and Brisbane (14.5%), while Adelaide rose 8.8% and Hobart 6.8%; Sydney, Melbourne and Canberra posted more subdued yearly growth of 5.8%, 4.8% and 4.9% respectively.
However, momentum faded in the final month of the year, with Sydney and Melbourne both down 0.1%, as speculation that the Reserve Bank's next move could be a rate hike weighed on confidence and affordability.
Capital-city dwelling values grew 8.2% over the year, compared with 9.7% in regional Australia, while higher-priced homes continued to underperform lower and mid-priced segments as buyers adjusted to "higher for longer" interest rates, rising living costs and tightening serviceability pressures.