March Home Values: Melbourne and Sydney Flatten, Perth Surges.

Home Values in February continue a trend of growth slowing that we’ve seen across December and January, however what’s becoming clearer is that the data is telling two different stories; One of steadying major cities and another of surging mid-size cities.

What is the Home Value Index (HVI)?

The Home Value Index (HVI)^[1], also known as the Hedonic Home Value Index, leverages recent property sales from each state to track the median value growth of homes nationwide. It serves as a key metric for analysing the performance of the Australian residential property market and is useful when looking at the affordability and investment potential of states and capital cities.

Source: Cotality HVI Report February 2026

State Market Report

These median values are as at 2nd of February 2026.

Sydney

The median home value stayed stable in Sydney at $1,296,039.

Melbourne

The median home value stayed stable in Melbourne at $826,132.

Brisbane

The median home value has increased 1.6% and is now $1,080,538.

Adelaide

The median home value has increased 1.3% , and is now $$922,991.

Perth

The median home value has increased 2.3% , and is now $989,211, this puts Perth in spitting distance of becoming the third million-dollar-market.

Hobart

The median home value has increased 1.2% , and is now $728,815.

Darwin

The median home value has increased 0.2% and is now $602,284.

Canberra

The median home value has increased 0.8% and is now $903,374.

Big City Values Stay Static

Melbourne and Sydney’s growth has been slowing  for a while, however, no month-to-month change across February while other cities seen consistent or even surprising growth tells a story. We’ve expected growth to slow nationwide, but Brisbane and Adelaide continue to rise in value, while Melbourne and Sydney are easing. Low supply in Mid-sized cities is likely pushing the polarisation, as Sydney and Melbourne clearance rates have eased and demand has slowed.

Perth Continues its Hot Streak

Perth continues to see rapid growth, eclipsing other capital cities. This is also due to low supply and high demand, as Perth Listings are 48% below the five year vacancy rate average. With the Western Australian government recently announcing a land tax exemption increase for build-to-rent developments, supply will hopefully increase, however it’s worth noting this eases rental supply, not vendor supply. There may be a domino effect in which this eases the market overall, but will likely not have a large reduction in owner occupied supply.

What Does This Mean? 

Rising prices are great for owners and investors, but create a serious challenge for people looking to buy. As property prices continue to rise in some cities alongside a hike in interest rates, home buyers are needing to be more creative. If you’re looking to buy and need support, reach out to your local MoneyQuest broker. We can help you put together a savings plan, educate you on smart finance and compare lenders to find a home buying strategy that works for you.

[1] Cotality (2026) March Home Value Index: Cotality. Available at: https://discover.cotality.com/hubfs/ArticleReports/COTALITY%20HVI%20Feb%202026%20FINAL%201.pdf [Accessed 4th March 2026]. 

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