National dwelling values across Australia rose by an estimated 0.3% in February 2026, according to CoreLogic's Hedonic Home Value Index — the seventh consecutive month of modest positive movement following the brief correction of late 2023. The national median dwelling value stands at approximately $794,000. Auction clearance rates across combined capital cities averaged 63.4% for the month — a level associated with gentle market growth conditions.
National Property Market Overview — February 2026
The national property market continues to be supported by three primary factors: declining interest rates (down approximately 0.5% from the 2023 peak), persistent housing supply shortfalls relative to population growth, and strong net overseas migration maintaining rental demand and buyer competition. Net overseas migration — while moderating from its 2023–24 peak of approximately 540,000 — remained approximately 390,000 in the 12 months to December 2025, sustaining underlying housing demand.
Affordability constraints remain the primary headwind, particularly in Sydney and Melbourne where median values are $1.17M and $774,000 respectively. The supply pipeline — while growing — remains insufficient to meet demand in most major cities, with planning approvals and completions consistently below population-driven household formation rates.
| Market | Feb 2026 Change | 12-Month Change | Median Value (approx.) |
|---|---|---|---|
| National | +0.3% | +4.2% | $794,000 |
| Sydney | +0.2% | +3.8% | $1,170,000 |
| Melbourne | +0.1% | +1.9% | $774,000 |
| Brisbane | +0.4% | +6.1% | $873,000 |
| Perth | +0.8% | +14.2% | $790,000 |
| Adelaide | +0.6% | +11.4% | $782,000 |
| Canberra | +0.2% | +2.8% | $856,000 |
| Hobart | -0.1% | +0.5% | $641,000 |
City-by-City Property Market Performance in February 2026
Perth continues to be Australia's standout property market — annual growth of 14.2% reflects the combination of strong resources sector employment, interstate migration inflows, very low vacancy rates (approximately 0.9%) and limited new supply. Entry-level suburbs in Perth's outer rings have seen the strongest growth as buyers are pushed further from the CBD by rising prices.
Adelaide's 11.4% annual growth similarly reflects a market constrained by supply, supported by defence sector employment and lifestyle appeal to interstate migrants. Melbourne continues to underperform relative to other capitals — affordability, population growth moderation and elevated apartment supply in certain inner-city suburbs are contributing factors. Sydney's 3.8% annual growth is solid but below the boom-era pace, with affordability as the binding constraint for many buyer cohorts.
First Home Buyer and Investor Activity in February 2026
First home buyer (FHB) loan commitments remained elevated in February 2026 — ABS data showed FHBs represented approximately 28% of all owner-occupier loan commitments by number, up from 22% in 2022. The expansion of First Home Guarantee places, combined with rate reductions and continued government grants, has supported FHB activity despite affordability pressures.
Investor lending also strengthened — representing approximately 36% of all new loan commitments by value, reflecting confidence in the rental market (vacancy rates below 2% in most capitals), improving rental yields, and tax advantages in a rising rate environment. The ATO and APRA continue to monitor investor activity, though no new macroprudential restrictions are currently anticipated.
Rental Market Context for Investors
National rental vacancy rates remain historically low at approximately 1.2% as of February 2026. Median rent growth nationally was 6.8% over the 12 months to December 2025. This rental environment supports strong rental yields for investors — particularly in Perth (averaging 4.2% gross yield on houses) and regional areas — though yield compression continues in premium Sydney suburbs.
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About the Author
Sakib Manzoor
Senior Finance Wellness Expert
Sakib Manzoor is the founder of Secure Finance and brings extensive experience in Australian mortgage broking and financial wellness. Specialising in helping clients achieve their property finance goals through personalised strategies and expert guidance, Sakib is FBAA accredited and committed to providing clear, actionable advice. All content is written to meet Australian regulatory standards and is regularly updated to reflect current market conditions.