Australia\u2019s housing market continued to climb in February despite an interest rate rise, with mid-size capital cities recording the strongest gains. New figures show Perth<\/strong>, Brisbane<\/strong>, and Adelaide<\/strong> extending their upward momentum, while Sydney<\/strong> and Melbourne<\/strong> remained broadly flat, reinforcing a two-speed market. Nationally, home values and affordability pressures remain elevated, with median prices in the capitals holding above key thresholds even as growth diverges by city and price segment.<\/p>\n\n\n\n Perth<\/strong> recorded the largest monthly lift, with home values up 2.3%<\/strong> in February. Brisbane<\/strong> followed with a 1.6%<\/strong> rise, and Adelaide<\/strong> gained 1.3%<\/strong>. In contrast, the largest markets showed little movement: both Sydney<\/strong> and Melbourne<\/strong> were essentially flat despite high median house prices near $1.3 million<\/strong> in Sydney and about $830,000<\/strong> in Melbourne. Across the capital cities as a whole, the median house price is now above $1 million<\/strong>.<\/p>\n\n\n\n Cotality\u2019s Home Value Index held at 0.8%<\/strong> nationally in February, unchanged from January, taking the national median value to $922,838<\/strong>. Combined capital city values rose 0.6%<\/strong>, while regional property prices continued to outperform, showing a stronger increase than many metro markets as buyers looked for more affordable options outside major cities.<\/p>\n\n\n\n Cotality\u2019s head of research Gerard Burg<\/strong> said tight housing supply is a major factor behind the strong rises in the mid-sized capitals. Perth listings were reported as 48%<\/strong> below the five-year average, compared with 31%<\/strong> below in Brisbane and 23%<\/strong> below in Adelaide. With fewer properties available, buyers face stronger competition and reduced bargaining power, pushing prices higher.<\/p>\n\n\n\n Burg also pointed to strong migration into Western Australia alongside constrained new construction in recent years, creating a structural imbalance between population growth and housing delivery.<\/p>\n\n\n\n In Sydney, where new listings were higher, value growth was more concentrated at the lower end of the market. Cheaper properties rose 0.8%<\/strong> over the month, supported by first-home buyer demand and participation in the federal government\u2019s 5% Deposit Scheme<\/strong>. Analysts suggest higher-end segments are feeling rate pressure more acutely because credit availability tightens first for larger loans, reducing resilience in premium price brackets.<\/p>\n\n\n\n Economist Chris Richardson<\/strong> said the lower end of the market has led gains over the past year. He cited entry-level housing rising more than 12%<\/strong> nationally, equivalent to about $75,000<\/strong>. Richardson described the February rate rise as having a modest effect so far, but warned that an additional rate increase later in the year could shift momentum, likely slowing price growth without necessarily reversing it.<\/p>\n\n\n\n Market anecdotes suggest demand remains active, with some buyers moving quickly ahead of potential future rate hikes. In Melbourne, agents described strong competition among families for limited suitable stock, alongside renewed interest from interstate investors who view Victoria as comparatively more affordable. At the same time, cost-of-living pressures are prompting some investors to sell, indicating mixed forces within the investor cohort.<\/p>\n\n\n\n February data reinforces a two-speed housing market, with strong gains in Perth, Brisbane, and Adelaide driven by low supply and buyer competition, while Sydney and Melbourne show weaker momentum. Regional markets continue to attract affordability-driven demand. Although the recent rate rise has not derailed national growth, analysts expect future increases to cool the pace, especially at the higher end, while entry-level housing remains the most resilient segment in the current cycle.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Introduction Australia\u2019s housing market continued to climb in February despite an interest rate rise, with mid-size capital cities recording the strongest gains. New figures show Perth, Brisbane, and Adelaide extending their upward momentum, while Sydney and Melbourne remained broadly flat, reinforcing a two-speed market. Nationally, home values and affordability pressures remain elevated, with median prices […]<\/p>\n","protected":false},"author":5,"featured_media":2754,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[110],"tags":[826,829,828,832,831,833,834,827,825,830],"tmauthors":[129],"ppma_author":[117],"class_list":{"0":"post-2753","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-retail","8":"tag-5-deposit-scheme","9":"tag-adelaide-housing","10":"tag-australia-house-prices","11":"tag-brisbane-home-values","12":"tag-cotality-home-value-index","13":"tag-housing-supply-shortage","14":"tag-interest-rate-impact","15":"tag-melbourne-housing-market","16":"tag-perth-property-market","17":"tag-sydney-prices-flat"},"yoast_head":"\nMid-Size Capitals Keep Rising While Sydney and Melbourne Stall<\/h2>\n\n\n\n
National Home Values and Regional Outperformance<\/h2>\n\n\n\n
Low Listings and Migration Drive Perth\u2019s Momentum<\/h2>\n\n\n\n
Cheaper Homes Perform Better in Sydney<\/h2>\n\n\n\n
Entry-Level Housing Has Been the Big Mover<\/h2>\n\n\n\n
On-the-Ground Signals: Buyers Rush, Investors Reposition<\/h2>\n\n\n\n
Conclusion<\/h2>\n\n\n\n