Dwelling prices across the combined capitals have risen 9.2% over the past year. In January, prices rose 0.7% mom, even as Sydney and Melbourne have slowed.
17 February 2026 | 3 min read
26 February 2026
Sentiment in the housing market improved again in the December quarter of 2025 with the NAB Residential Property Index at +65 from +62 in September, continuing at a four year high.
Sentiment was a little mixed, with all but NSW, ACT, and NT recording an increase.
The sentiment increase for VIC and contemporaneous drop in NSW has the former overtaking the latter for the first time in over a year. While current house price expectations for these two markets eased, rental expectations in VIC improved, contributing strongly to the index.
Most property professionals assess market conditions as rising, or as a second response, approaching the peak. In VIC however, the second highest ranked response indicates that the market is at the start of a recovery.
Our forecast for the 8-capital city dwelling price index expects growth of around 5% over 2026.
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