National home prices edged higher in December, rising 0.1 per cent to a new record median of $880,000, as gains in several states offset softer conditions in Sydney and Melbourne, according to the latest PropTrack Home Price Index.
The data shows price growth across the country remained modest at the end of 2025, though values are now 8.8 per cent higher than a year ago.
Combined capital city prices were flat over the month, while regional markets continued to outperform, recording a 0.4 per cent increase.
Price declines were recorded in Sydney (-0.3 per cent), Melbourne (-0.3 per cent) and Canberra (-0.2 per cent).
In contrast, Adelaide (+0.8 per cent) led monthly growth among the capitals, followed by Brisbane and Perth, which both rose 0.5 per cent.
Hobart recorded a modest 0.2 per cent increase, while Darwin was unchanged.
REA Group senior economist Anne Flaherty said December’s results highlighted a clear divergence between markets.
“Home price growth was mixed across the country in December. Adelaide, Brisbane and Perth recorded strong gains over the month, while prices dipped in Sydney and Melbourne,” she said.
Ms Flaherty said regional areas continued to outperform, particularly in states where capital cities have led growth over the past year.
She expects prices to continue rising in 2026, but at a slower pace, as interest rate settings, constrained housing supply and government incentives shape market conditions.
“Home prices are predicted to head to new highs in 2026, however the pace of growth is expected to slow,” she said.
“Counteracting the headwinds of higher rates is limited new housing supply and persistent demand, with the Australian Government’s 5 per cent Deposit Scheme also likely to support price growth at the more affordable end of the market.”
Signs of improving supply emerged in November, with new construction approvals posting their strongest result in years.
Fresh figures from the Australian Bureau of Statistics show total dwelling approvals jumped 15.2 per cent over the month to 18,406, driven primarily by a surge in non-detached housing approvals.
Apartment and townhouse approvals recorded their fastest monthly growth since June 2018, lifting approvals to a seven-year high and providing a boost to future housing supply.
The increase comes as Australia continues to fall short of its targets under the National Housing Accord, highlighting both improving momentum in higher-density construction and the scale of the challenge still facing the housing market.
