KPMG Forecasts 7.7% Rise in Australian House Prices for 2026

Perth is anticipated to experience the most significant growth, with house prices expected to surge by almost 13%. This substantial increase is attributed to the city's rapid population growth and limited housing supply, which have intensified demand and pushed prices higher. Other capital cities are also projected to see notable increases: Brisbane and Darwin are forecasted to grow by more than 10%, Adelaide by over 8%, and Melbourne, Sydney, and Hobart by more moderate percentages.

Dr. Brendan Rynne, KPMG's chief economist, highlighted that the unexpected strength of the market during the second half of 2025 has set the stage for continued growth in 2026. He noted that despite affordability challenges, buyers in cities like Perth and Brisbane are prepared to pay premium prices, further fueling the market's upward trajectory.

For prospective homebuyers and investors, these projections underscore the importance of staying informed about regional market dynamics. Understanding the factors contributing to price increases, such as population growth and housing supply constraints, can aid in making strategic decisions in the evolving Australian property landscape.