Most Australian real estate pros expect house prices to rise in 2026, led by Sydney, despite rate hikes and regional disparities.

Most Australian real estate and finance professionals expect national house prices to rise in 2026, with 87% forecasting growth and 44% predicting gains over 5%. A growing split is emerging between strong-performing markets in New South Wales and Victoria and weaker mid-tier regions like Queensland, Western Australia, and South Australia. Although anticipated Reserve Bank rate hikes are tempering optimism compared to 2025’s 8.6% increase, driven by three rate cuts, underlying supply shortages and high demand continue to support price growth. Sydney remains a key driver of optimism, though sentiment is more sensitive to monetary policy and buyer financial strain, with geopolitical uncertainty further dampening demand.