$908K and climbing: Record home prices defy war and rate pain

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Home prices hit a new record high in March, with Brisbane leading the gains.

Home prices have hit a new record high across the country, defying cost of living pressures, higher interest rates, and escalating tensions in the Middle East.

PropTrack’s Home Price Index for March, released today, reveals the nation’s median home value rose another third of a per cent to $908,000 last month, but a broad-based slowdown is emerging across the country.

The report found home prices are now 9.4 per cent, or $94,800, higher than they were a year ago.

Brisbane recorded the biggest monthly rise in home prices in March, according to the PropTrack Home Price Index.

Among the capital cities, Brisbane recorded the biggest monthly rise of 0.7 per cent, followed by Perth (0.5 per cent), while the other capitals recorded softer growth.

Both Sydney and Melbourne recorded a modest 0.2 per cent increase.

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Annually, Perth continued to lead the gains, recording a 21 per cent increase in its median home price to just over $1m for the first time ever.

In regional areas, home prices grew 0.4 per cent in March, and are 11 per cent higher compared to a year ago.

REA Group senior economist Eleanor Creagh said that while growth continued, momentum had eased, with more than three quarters of SA4 regions recording a deceleration in monthly growth relative to February.

Eleanor Creagh, senior economist, REA Group. Picture: John Gass.

“This points to a slowdown in growth emerging across the country and a clear turning point in the cycle, as rising interest rates weigh,” Ms Creagh said.

“While price declines remain limited, they are beginning to emerge in some inner and middle ring markets, most notably in Sydney and Melbourne. I wouldn’t be surprised if we saw price falls in Sydney and Melbourne (in April).

“Recent rate rises will weigh on buyer sentiment, borrowing capacity, and erode already poor affordability, though a resilient labour market, population growth and first-home buyer support continue to underpin demand against limited supply.”

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PropTrack Home Price Index March 2026
Region	Monthly growth	Annual growth (%)	Annual growth ($)	Median value ($)
Sydney	0.2	5.6	$91,800	$1,251,000
Melbourne	0.2	3.2	$44,400	$859,000
Brisbane	0.7	17.7	$172,200	$1,071,000
Adelaide	0.4	14.6	$120,600	$937,000
Perth	0.5	20.9	$187,900	$1,012,000
Hobart	0.1	8.9	$64,200	$722,000
Darwin	0.4	16.8	$95,500	$609,000
ACT	0.2	4.5	$56,500	$880,000
Capital Cities	0.3	8.8	$105,400	$1,016,000
Rest of NSW	0.4	8.8	$63,500	$787,000
Rest of Vic.	0.1	7.3	$48,600	$600,000
Rest of Qld	0.6	14.1	$109,900	$822,000
Rest of SA	0.6	12.2	$54,500	$504,000
Rest of WA	0.2	15.9	$87,400	$636,000
Rest of Tas.	0.2	11.6	$60,900	$572,000
Rest of NT	0.2	2.5	$15,300	$350,000
Regional Areas	0.4	11	$71,700	$715,000
National	0.3	9.4	$94,800	$908,000

Source: PropTrack

Ms Creagh said the market was shifting into a slower-growth phase, with the likelihood of flat or declining prices in some markets in the months ahead — although supply shortages could cushion the falls.

“Another interest rate rise, if delivered in May, and potentially another one or two in the second half of the year will put further pressure on borrowing capacity and buyer sentiment and demand,” she said. “That will increase the likelihood of declining prices.

PropTrack senior economist Eleanor Creagh says the market is notably slowing in Sydney, with clearance rates well down.

“But, there are factors that could mitigate falls, such as the flow of new listings hitting the market. In 2022, when prices were falling and rates were rising, a lot of sellers held back from listing and the tight supply environment was one of the factors that cushioned price falls.”

Ms Creagh said many home owners were also sitting on strong equity gains, which could also soften any price declines.

“We’re unlikely to see widespread forced selling,” she said. “If prices do fall, it’s likely to be a moderate downturn.”

New research from the Mortgage & Finance Association of Australia (MFAA) reveals four in five mortgage holders are concerned about the financial outlook.

The MFAA’s latest Market Sentiment Survey of the Association’s mortgage broker members shows rising rates, cost-of-living pressures, and increasing mortgage serviceability issues are putting pressure on households.

Higher fuel prices are adding to pressure on household budgets. Picture: Caroline Tan.

MFAA CEO Anja Pannek said the findings highlighted the increasingly fragmented nature of Australia’s housing market.

“Australia’s housing market is no longer moving in a single direction,” Ms Pannek said. “What we are seeing is effectively a five-speed housing economy across key regions.”

Ms Pannek said borrowers across the country were experiencing very different conditions depending on where they lived.

“We see strong optimism in some states, but there are supply constraints and affordability pressures in others, which will only be exacerbated by skyrocketing oil prices,” she said.

“Ongoing global uncertainty, conflict in the Middle East and inflation will likely add to borrower caution.”

Ray White chief economist Nerida Conisbee said higher interest rates and uncertainty were moderating price growth, but it might only be temporary.

“Periods of heightened uncertainty tend to suppress activity rather than alter long-term demand,” Ms Conisbee said.

“As uncertainty lifts, delayed decisions are brought forward, supporting a recovery in transaction volumes.

“At the same time, housing supply is becoming more constrained. Construction costs were already rising due to labour shortages, and materials costs are now increasing again, with supply chains under pressure. While prices are moderating due to higher interest rates, ongoing shortages and rising building costs are likely to create longer-term upward pressure.”

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