Property prices in three major Australian cities are on track to double

Three Australian cities have achieved what seemed impossible just five years ago – property prices doubling in the post-pandemic boom.

Property prices in Brisbane are on track to have doubled by January. Picture: iStock

The new year will mark a milestone for property markets in ­Australia’s booming mid-sized capitals, with prices on track to have doubled since Covid in the first few weeks of 2026.

Since the onset of the pandemic-induced housing boom in November 2020, Brisbane, Perth and Adelaide have emerged as the most consistent markets for growth, significantly outperforming Sydney and Melbourne.

If prices continue on the same trajectory, housing researcher PropTrack expects Brisbane and Perth prices to have doubled by January, with Adelaide to follow in March. In comparison, since November 2020, Sydney prices will have increased by 44 per cent by January, while Melbourne prices will have risen only 21 per cent.

Perth prices are rising after plummeting post-mining boom. Picture: iStock

PropTrack senior economist Eleanor Creagh said much of the growth was achieved in the early pandemic period before the 2022 downturn was sparked by the ­Reserve Bank’s decision to lift interest rates to their highest levels in more than a decade.

“It’s been a really exceptional period for each of the three cities,” Ms Creagh said.

“Adelaide and Brisbane have continued to ­record very strong growth, with continued population inflows, very tight rental markets, limited new supply, a continuation of low stock on markets and, more recently, strong investor activity, all reinforcing demand.”

Last year, Brisbane surpassed Melbourne and the ACT to ­become the nation’s second most expensive capital city, with the median cost of a home being $997,000 last month. Adelaide prices have also edged higher to a median of $898,000.

The performance is in contrast to the 2010s, when each city steadily climbed around 20 per cent over 10 years.

On the other side of the country, the end of the mining boom in 2014 marked the start of a deep downturn for Perth, which led to the median cost of property slipping 15.9 per cent between 2015 and 2020. Now, the typical home costs $930,000.

“The common denominator is the same as any five-year period of time going back more than a century – the strongest economies will have the strongest property markets,” he said.

“The Victorian state economy is a basket case and that’s why house prices have done stuff all.”

Homeowners who have been out of the market during this ­period of exceptional growth are shocked by the level of competition in the market, said the nat­ional president of the Real Estate Buyers Agents Association, Melinda Jennison.

“They’re finding that the number of properties available for sale has shrunk considerably compared to five years ago, and in some markets that’s as much as 30 to 40 per cent below the long-term average,” she said.

“That just means that conditions are a lot more competitive. The demand and supply metrics are well out of balance.”

Buyers agent Melinda Jennison is one who warns first-home buyers of the risks of waiting.

While owners with a foot on the property ladder have benefited from equity gains, affordability for those hoping to make their first purchase remains a challenge.

“A lot of first-home buyers are looking for something that’s outside of their affordability and, instead of compromising … they wait and they save,” Ms Jennison said.

“Unfortunately, their rate of savings occurs at a much slower rate than the rate of market price movement, and they’re actually falling further behind.”

Property prices are expected to continue climbing next year, with Darwin, Perth and Brisbane expected to lead the pack. But Ms Creagh believes growth will begin to moderate next year.