If you thought 2025 was a crazy year for property prices, think again.
According to the leading industry researcher Cotality, it ranked only 11th among years for the sharpest increase in real estate values.
And if the predictions of some property pundits are to be believed, 2026 could be even bigger to produce double-digit national growth.
National values rose 8.6% in 2025, according to a new report from Cotality – that’s a long way adrift from the two boom years of 1988 (+33.1%) and 2021 (+24.5%).
Cotality estimated almost 561,000 sales transacted in 2025, a 4.9% increase on 2024 and 7.2% higher than the five-year average.
It took the average seller only 27 days to strike a deal. The hottest market was Perth, where the average period was just nine days. At 35 and 37 days respectively, Darwin and Canberra were the slowest markets.
While there was a bit of a rush of properties coming onto the market in Sydney and Melbourne in the final quarter of 2025, the shortage of properties was pretty evident. Cotality said the number of homes for sale was down 15.8% compared with 2024 and 20.6% under the five-year average.
Cotality’s December figures also noted the first time that the national market has broken the $12 trillion barrier thanks to a 2.8% growth in prices in the final quarter of 2025. That percentage represents an increase of $71,360 to the median value of a dwelling.
Over the Christmas period and up until January 8, Cotality said that the market was stable with the fastest-growing markets of Perth, Brisbane and Adelaide losing a little steam. Sydney and Melbourne were flat.
In its report, Cotality said there had been only six years in which the market had gone backwards in the past four decades.
Its director of research, Tim Lawless, observed that market fortunes were not stimulated by monetary policy – that is, interest rates set by the Reserve Bank of Australia – but more practical dynamics such as immigration, fiscal stimulus, availability of credit and the supply of available homes for purchase.
If you’re an owner considering upsizing this year, here are four essential pieces of advice or observations for you:
Don’t fear the “flat” spot – While prices were flat over the festive period, you shouldn’t read anything into this. Use the “seasonal breather” to your advantage. If you can secure a purchase now, you might avoid the next $70,000 quarterly price jump.
Mind the gap – The “gap” between your current home and your dream home widens every day. If your current home is worth $800k and the upsized home is $1.2M, an 8.6% market rise adds $68k to your current home but $103k to the new one. The longer you wait, the more you’ll pay.
Consider buying first – In a market where listings are down 20% against the five-year average, finding the right upsized home is much harder than selling your current one. If your finances allow, consider buying your next home first. With the average sale taking only 27 days (and only nine in Perth!), you can be confident your current home will sell quickly.
Hot market segment – Since you’re likely selling a smaller home to upsize, you are probably in a position of strength. Your current property may be what investors and first-time buyers (fuelled by the Home Guarantee Scheme) are competing for. Use the high demand at the lower end of the market to push for a premium sale price and a quick settlement.