Brisbane, Perth and Darwin: The Top Growth Housing Markets of Australia 2025/2026

While much of the national conversation around housing in 2025 focused on affordability pressures and rate uncertainty, three capital cities quietly delivered some of the strongest results in the country.

Brisbane, Perth and Darwin not only outperformed the national average, they did so with fundamentally different drivers — offering valuable insights into where housing momentum is coming from and where it may head next. If you are asking the question where to buy property in Australia these areas could be the answer you need.

Based on Cotality’s housing data for calendar year 2025, these markets emerged as clear standout top growth housing markets.

Brisbane: Strong Growth, Now Entering a More Balanced Phase

Brisbane finished 2025 as one of Australia’s strongest-performing capital city markets, recording annual dwelling value growth of 14.5%. Prices also rose 5.6% over the December quarter, with values lifting a further 1.6% in December alone, pushing the city to new record highs.

The strength of Brisbane’s market was underpinned by sustained population growth, ongoing interstate migration and relative affordability compared to Sydney and Melbourne. Importantly, growth was not confined to premium stock — lower-priced segments continued to outperform, reflecting demand from both owner-occupiers and investors navigating borrowing constraints.

Toward the end of the year, price momentum moderated slightly, aligning with national trends as affordability pressures became more pronounced. However, selling conditions remained tight and buyer demand resilient.

On the rental front, Brisbane recorded annual rent growth of 6.2%, with vacancy rates remaining low. While yields have compressed as values rose, investor interest remained elevated due to strong rental demand and limited supply.

Brisbane now appears to be transitioning from rapid expansion to a more sustainable, balanced growth phase, rather than showing signs of a material downturn.

Perth: Supply Constraints Driving Persistent Momentum

Perth was one of the clearest examples of supply-driven growth in 2025. Dwelling values rose 15.9% over the year, supported by a 7.6% increase over the December quarter and a 1.9% lift in December alone. Like Brisbane, Perth ended the year at record-high values.

Unlike many eastern capital cities, Perth’s momentum has been less sensitive to shifts in sentiment or borrowing capacity. Chronic undersupply, combined with steady population inflows and comparatively affordable price points, kept buyer competition elevated throughout the year.

Sales activity remained strong and selling times among the shortest nationally, reinforcing how quickly stock is being absorbed. New listings struggled to keep pace with demand, keeping upward pressure on prices even as growth eased elsewhere.

Rental conditions were also extremely tight. Rents rose 5.9% over the year, vacancy rates remained low, and investor participation continued to increase despite softer yields.

Heading into 2026, Perth stands out as one of the most structurally supported housing markets in the country, with limited signs of oversupply risk in the near term.

Darwin: The Strongest Capital City Performer of 2025

Darwin was the top-performing capital city housing market in 2025, recording annual dwelling value growth of 18.9%, the highest in the nation. Values also increased 5.4% over the December quarter, with prices rising 1.6% in December, finishing the year at record highs.

Darwin’s performance highlights how smaller markets can move quickly once demand returns. Tight stock levels, renewed investor activity and improving affordability relative to incomes combined to produce outsized price gains.

The rental market was particularly strong, with annual rent growth of 8.2%, among the highest nationally. This supported investor interest despite the broader trend of yield compression across Australia.

While Darwin’s smaller market size makes it more volatile than larger capitals, 2025 marked a decisive shift into a growth phase, reversing years of relatively subdued performance.

Brisbane vs Perth vs Darwin — 2025 Housing Market Comparison

Insights From This This Table

• Brisbane is transitioning into a more balanced phase after rapid growth
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• Perth remains the most structurally undersupplied and resilient
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• Darwin delivered the strongest gains but carries greater volatility due to market size

What These Markets Tell Us About 2025 — and Beyond

Brisbane, Perth and Darwin shared several key characteristics in 2025:

• All significantly outperformed the national dwelling value growth rate of 8.6%
• Demand was strongest in lower-priced and more affordable segments
• Supply shortages played a major role in sustaining price growth
• Investor participation increased, supported by tight rental markets

However, the outlook for each market is nuanced. Brisbane appears to be normalising, Perth remains firmly undersupplied, and Darwin continues to benefit from cyclical recovery dynamics.

As Australia moves into 2026 with a more uncertain interest rate outlook, these markets highlight a crucial theme: housing performance is increasingly driven by local supply, affordability and demographic trends — not just national monetary policy.

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