HOME PRICES CONTINUE TO RISE AS APRIL GROWTH EASES
Australia’s capital city housing markets have continued to record price growth, although higher interest rates and economic uncertainty are beginning to temper momentum.
3 min
Capital city home prices have continued to rise in April despite higher interest rates and ongoing uncertainty about the outlook for inflation and the global economy.
Growth rates, however, have eased, reflecting the usual subduing effect of the lengthy April holiday month.
The national capital city median house price increased marginally by 0.2% over the April quarter to $1,297,798 compared to the March quarter, according to the latest data from My Housing Market.
Annual national house prices are, however, 10.2% higher and have now increased for 14 consecutive months.
Most capitals reported house price increases over the month, with Brisbane and Perth the top performers, each higher by 1.3%, followed by Hobart and Darwin, both up 1.2%, Adelaide up 0.2%, with Sydney steady. Melbourne prices, however, fell 0.7%, while Canberra prices fell 1.7%.
Most also report strong annual house price growth in excess of 10%, with Perth, Darwin, Brisbane, and Adelaide clearly the highest, up by 25.7%, 21.6%, 20.0% and 14.2% respectively.
National unit prices were also higher in the April quarter than in the March quarter, rising by 0.5% to $728,459, and have now increased by 8.2% compared to the April quarter 2025 result.
Brisbane was the top monthly performer in April, with unit prices rising by 1.7%, followed by Perth up 1.0%, Melbourne and Canberra each up 0.9%, Adelaide up 0.6%, and Hobart up 0.1%. Sydney unit prices were steady over the month; however, Darwin unit prices were down 0.8%.
Similar to houses, Perth, Brisbane, Adelaide and Darwin continue to record the highest annual unit price growth to April 2026, at 30.1%, 27.8%, 12.9% and 11.8%, respectively.
Analysis
Capital city housing markets have generally reported higher home prices in April, although growth rates have eased compared to March.
Easing housing markets reflect the usual dampening effects of the lengthy April holiday month, although higher interest rates and increased uncertainty about the economic outlook have weighed on affordability and confidence.
Robust annual home price growth, however, continues for most capitals with Perth, Darwin, Brisbane, and Adelaide still reporting boomtime results.
Although 2026 is still set to see home price growth generally in most capitals, the rising spectre of further interest rate increases and elevated uncertainty over the outlook for inflation and the economy will continue to dampen affordability and confidence.
Brisbane, Adelaide, Perth and Darwin, however, are again set to lead capital city outcomes for both houses and units, but are unlikely to match the extraordinary 2025 results.
Brisbane, Perth and Adelaide continue to record higher median house prices than Melbourne, with Perth now closing in fast on Brisbane and set to lead all but Sydney.
Underlying drivers will continue to support overall housing market activity, although the outlook for RBA interest rates is more problematic, with inflation set to accelerate and economic activity to decline as a consequence of the recent sharp increase in oil prices.
The economy, however, remains strong, with a steady, still-low jobless rate, falling unemployment, continued robust job growth, and a high participation rate.
Housing demand continues to outpace a low and diminishing housing supply, and although high post-COVID migration levels have recently eased, numbers remain strong and will add to chronic housing undersupply, supporting high rents and low vacancy rates generally in capital city rental markets.
Following a period of easing in rental growth, the latest data continue to show extraordinarily low home rental vacancy rates and clear signs that rents are on the rise again.
High rents and higher prices continue to provide clear incentives for first-home buyers and investors chasing solid investment returns.
Ongoing government initiatives to support first-home buyers will increase demand and place further upward pressure on prices.
Capital city housing markets generally recorded higher house and unit prices over 2023, 2024 and surged over 2025, fuelled by rising buyer and seller confidence through sharp cuts to interest rates.
Although 2026 is again likely to see higher home prices, significant uncertainty has recently emerged about the near-term outlook for already-high interest rates and economic activity, which will generally dampen buyer and seller confidence.
Early signs are emerging in the recent weakening of home auction market clearance rates, particularly in Sydney and Melbourne.
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A major new luxury resort development is set to reshape the Hunter Valley’s high-end tourism offering, with HVL Hotels unveiling plans for Laval Hunter Valley, a 65-villa resort opening in Pokolbin in 2027.
Positioned on the historic 165-acre Lindeman Estate site, Laval is being described as the first new-build luxury resort of its scale in the Hunter Valley in two decades.
The project is expected to generate about $49 million annually in economic activity while supporting up to 479 jobs across construction and ongoing operations.
HVL Hotels Managing Director Dominic Lambrinos said the development aimed to create a new benchmark for regional luxury tourism.
“Laval is more than the answer to a longstanding gap in the Hunter Valley’s luxury accommodation segment,” he said.
“It represents an ambition to do something that hasn’t been done before, on the most magical piece of land within the valley.”
The resort will feature 65 pavilion-style villas positioned throughout a working vineyard landscape, including a Wabi Sabi-inspired Presidential Villa designed by Tonkin Zulaikha Greer. Architecture will be led by EJE Architects, with interiors by Some Studio.
The development will also include a private helicopter landing facility, a 25-metre red-tiled pool overlooking Shiraz vines, landscaped meditation meadows, sensory gardens and a major ecological regeneration program involving more than 21,000 plants and 6,782 vines.
One of the resort’s defining features will be its art program, anchored by one of the world’s largest collections of Gillie & Marc sculptures. The collection will include 13 large-scale outdoor works alongside more than 130 in-room and digital pieces integrated throughout the property.
Food and beverage offerings will be led by chef Justin North, with signature restaurant Vallery drawing inspiration from Provence, coastal Spain, southern Italy and Japan. Poolside venue La Vida and a central lobby bar will round out the culinary offering.
A 10,000-bottle cellar and 1,000-label wine list curated by Jon Osbeiston will focus on Hunter Valley heritage alongside international producers.
Wellness will form another key component of the resort, with the two-level Veraia Spa spanning 1,000 square metres and offering 15 treatment rooms, thermal circuits and longevity-focused therapies.
The Hunter Valley project is scheduled to open in the second half of 2027.
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