Arabic version: ارتفاع العواصم المتوسطة بينما تتوقف قيم سيدني وملبورن

Home values in Sydney and Melbourne have flatlined so far this year, while mid-sized capitals have seen record growth. According to SBS News, the disparity in the housing market has become increasingly pronounced, with smaller cities outperforming Australia’s largest metropolitan areas.

As of February 2026, Perth has emerged as the standout performer, with dwelling values climbing 2.3 percent within the month, adding over $22,500 to the median home price. Over the past year, home prices in Perth have surged by an impressive 27.1 percent. Brisbane and Adelaide have also shown positive trends, with increases of 1.6 percent and 1.3 percent, respectively, in February.

In stark contrast, median home prices in Sydney and Melbourne saw zero growth in February, completing a quarter marked by mild declines. Cotality research director Tim Lawless noted that the gap between the property markets of the major capitals and mid-sized cities has widened significantly, indicating a two-speed market.

The high demand and low supply in smaller capitals are major factors driving their growth. For instance, listings in Perth were nearly 50 percent below their five-year average in February, while Brisbane and Adelaide reported declines of 31 percent and 23 percent, respectively. In Sydney and Melbourne, the number of advertised listings remained slightly below average, but new listings exceeded five-year norms.

Lawless speculated that vendors in Sydney and Melbourne are selling now while conditions remain relatively strong, as there is an expectation that the market may weaken further. Despite the current growth in mid-sized capitals, he cautioned that trends could become more unpredictable if the two-speed growth persists, potentially affecting the broader market down the line.