Australian Median House Prices – July 2026: How Every Capital City Compares
Australia’s property market shifted further into a cooling phase during July 2026, with higher interest rates, affordability pressures and softer buyer sentiment weighing on values across several capital cities.
However, the headline national figures continue to hide significant differences between markets.
Sydney and Melbourne experienced some of the largest falls, while Perth, Hobart and Darwin proved considerably more resilient. Brisbane and Adelaide, which have been among Australia's strongest property markets over recent years, have also begun to lose some momentum.
According to the latest Cotality data to 31 July 2026, the median dwelling value across Australia's combined capital cities has fallen to approximately $1.011 million.
For property investors, renovators and home buyers, however, house prices rather than combined dwelling values can provide a clearer picture of the cost of purchasing a freestanding home.
Median House Prices – July 2026
Capital City | Median House Price | Monthly Change | Annual Change |
Sydney | $1,529,308 | -1.7% | -2.5% |
Brisbane | $1,207,039 | -0.6% | +14.3% |
Perth | $1,073,500 | +0.1% | +20.4% |
Canberra | $1,025,827 | -1.2% | +3.5% |
Adelaide | $1,007,684 | -0.2% | +10.3% |
Melbourne | $936,528 | -1.4% | -3.4% |
Hobart | $805,165 | +0.2% | +9.5% |
Darwin | $755,082 | +0.7% | +14.8% |
Source: Cotality, figures to 31 July 2026.
Sydney – $1,529,308
Sydney remains comfortably Australia's most expensive capital city for houses, but the market has clearly weakened.
The median house value fell 1.7% during July to $1,529,308, leaving house values approximately 2.5% lower than a year ago. Sydney dwelling values are also now more than 5% below their late-2025 peak.
Affordability is becoming an increasingly important factor. Higher borrowing costs mean fewer buyers can comfortably compete for Sydney houses, particularly across expensive inner and middle-ring locations.
For investors and renovators, the softer market may create opportunities to negotiate on properties requiring substantial work, deceased estates and other value-add opportunities where vendors are motivated to sell.
Melbourne – $936,528
Melbourne recorded another significant fall during July, with the median house value declining 1.4% to $936,528.
House values are now 3.4% lower than a year ago, making Melbourne one of the weakest-performing capital-city house markets over the past 12 months.
Interestingly, Melbourne houses are now substantially cheaper than those in Brisbane, Perth and Adelaide.
That represents a major reversal from historical norms and could eventually attract investors looking for relative value, particularly in established suburbs with strong infrastructure, employment and population-growth fundamentals.
Brisbane – $1,207,039
Brisbane has firmly established itself as Australia's second-most expensive capital city for houses.
The median house value stood at $1,207,039 at the end of July, despite declining 0.6% during the month.
The bigger story is Brisbane's longer-term performance: house values remain an impressive 14.3% higher than a year ago.
After years of rapid growth, however, affordability is beginning to bite. Brisbane values have slipped from their recent peak, suggesting buyers may have become more price-conscious.
Adelaide – $1,007,684
Adelaide has officially joined Australia's million-dollar house club.
The city's median house value finished July at $1,007,684, down a modest 0.2% for the month but still 10.3% higher over the past year.
Adelaide's extraordinary growth over recent years has significantly reduced the affordability advantage it once enjoyed compared with Sydney and Melbourne.
Even so, the South Australian capital continues to attract investors searching for opportunities in established suburbs and locations benefiting from employment, infrastructure and population growth.
Perth – $1,073,500
Perth continues to be one of Australia's standout housing markets.
The median house value reached $1,073,500 in July, edging 0.1% higher during the month.
More impressively, Perth house values remain approximately 20.4% higher than a year ago, the strongest annual increase among the capital cities.
After several years of extraordinary growth, the pace is clearly moderating.
Nevertheless, Perth's combination of population growth, housing demand and relatively constrained supply continues to support the market.
Canberra – $1,025,827
Canberra remains another million-dollar capital, with a median house value of $1,025,827.
However, house prices declined 1.2% during July, reducing quarterly growth and highlighting weaker buyer conditions.
Despite the recent downturn, Canberra houses remain around 3.5% higher than a year ago.
The softer conditions could provide buyers with greater negotiating power, particularly where properties have remained on the market for extended periods.
Hobart – $805,165
Hobart's median house value increased slightly during July to $805,165, recording monthly growth of 0.2%.
House values are now approximately 9.5% higher than a year ago.
After experiencing a significant correction following its pandemic-era boom, Hobart appears to have entered a more stable phase.
For investors, Tasmania's relatively affordable entry prices compared with most mainland capitals could remain attractive, although individual suburb selection remains critical.
Darwin – $755,082
Darwin remains Australia's most affordable capital city for houses, with a median value of $755,082.
But affordable certainly hasn't meant poor performance.
Darwin house values increased 0.7% during July and 14.8% over the past 12 months.
Darwin's lower entry price compared with every other Australian capital, together with comparatively strong growth, makes it an interesting market for investors prepared to carefully assess rental demand, yields and the city's more cyclical economic conditions.
Australia's House Price Ranking
The July figures reveal just how dramatically Australia's property landscape has changed.
Sydney remains in a league of its own at around $1.53 million, but Brisbane has moved firmly into second place at more than $1.2 million.
Perth has surged past $1.07 million, while Canberra and Adelaide are both above $1 million.
Perhaps the biggest surprise is Melbourne.
At approximately $937,000, Melbourne now has a lower median house value than Sydney, Brisbane, Perth, Canberra and Adelaide.
That creates an extraordinary gap of almost $593,000 between the median Sydney and Melbourne house.
What Does This Mean for Property Investors?
Australia is increasingly becoming a market of opportunities rather than simply a market where almost everything rises together.
The July figures show a clear divergence.
Sydney and Melbourne are experiencing price declines, while Perth, Darwin and Hobart remain relatively resilient. Brisbane and Adelaide remain substantially more expensive than a year ago but are showing signs that their extraordinary growth cycles are moderating.
For investors, this could create opportunities in two very different categories.
The first is momentum markets, where population growth, tight supply and strong rental demand continue supporting values.
The second is counter-cyclical opportunities in markets such as Sydney and Melbourne, where softer conditions could allow investors, developers and renovators to negotiate better purchases.
Rather than simply chasing the city with the highest recent growth rate, investors should focus on individual properties where value can potentially be created through renovation, development, subdivision, dual-income potential, granny flats or other value-add strategies — subject to council approval.
The Bottom Line
July 2026 confirms that Australia's property boom has moved into a very different phase.
National prices are cooling, but there is certainly no single Australian property market.
A median Sydney house is still worth more than twice the median Darwin house, while Brisbane, Perth and Adelaide have undergone extraordinary increases that have fundamentally changed Australia's traditional capital-city price hierarchy.
For property buyers, renovators and investors, softer market conditions may also bring something that has been difficult to find over recent years:
Greater negotiating power and more opportunities to buy properties with genuine value-add potential.
At Oz House Hunters, we search Australia for properties offering opportunities beyond the ordinary — including deceased estates, mortgagee and repossessed properties, renovators, development sites, DA-approved projects, dual-income properties and other value-add opportunities.
Source: Cotality Home Value Index, data to 31 July 2026. Median values are estimates and should be used as a broad market indicator rather than a valuation of an individual property.
30 DAY FREE TRIAL
Register for gold membership on our website:
Discover property gems easily Australia wide!! Our website features easy access to all live listings of mortgagee repossessed properties for sale, deceased estates, development sites, fixer-uppers, dual income properties, severely damaged houses, and properties requiring an urgent sale, perfect for savvy buyers and investors. Subscribers enjoy real-time updates, regular email updates on hot properties and expert insights to stay ahead. Sign up today and unlock your next great property deal!
Published by:
Nick Karayanis B.Eng. UNSW (Civil)
Licensed Contractor NSW (Building)
Disclaimer:
The content of this blog is for informational and educational purposes only and should not be considered professional financial, legal, or real estate advice. Every real estate transaction and renovation project is unique, and you should consult with qualified professionals, such as real estate agents, contractors, and legal advisors, to address your specific needs and circumstances. The information provided here is based on personal experiences and research and may not reflect current market conditions or regulations in your area. Readers assume all responsibility for decisions made based on the content of this blog.
Comments