In our last article, we wrote that the housing market was greatly affected by the US-Israel-Iran conflict, namely due to the blocking of the Strait of Hormuz.
We mainly focused on the housing market in Sydney and Melbourne, noting the decrease in demand in these areas.
But, what of other capital cities in Australia?
In comparison to Sydney and Melbourne, it seems that other cities are either not as badly affected, and are actually growing.
Most notably, Perth seems to be seeing increased growth with its housing market, seemingly due to the limited supply of homes increasing prices and property values.
However, while other cities might see further growth in their housing market, the overall potential to grow will plateau due to the various factors, such as the continuing interest hikes and increased cost of the energy and fuel markets.
Potential home buyers may not be able to buy new homes, especially those who already have mortgages, as they may soon be forced ‘to borrow at capacity’ (Carr 2026, SBS News).
However, it should be stated with great importance to not borrow whatever banks will offer, but to understand how much is needed to be able to live within one means, while being able to repay their loans.
Overall, the housing market seems quite volatile, with prices becoming more than people are willing to pay. But it is always best to remain vigilant, and not to act too rashly when making decisions.
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