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Australia's House Prices Set to Hit Record Levels by 2026

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  Published in House and Home on Wednesday, November 19th 2025 at 17:29 GMT by Daily Mail

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Australia’s House Prices Predicted to Hit New Records by 2026 – A Detailed Summary

The Daily Mail’s investigative piece on Australian property markets, published under the headline “Australia’s house prices predicted hit new records – 2026 areas expected to soar”, paints a picture of a housing boom that could redefine the country’s real‑estate landscape over the next few years. The article draws on a blend of official data, expert commentary, and recent trends to project that home prices across many key Australian cities will reach unprecedented levels by 2026, with certain suburbs and regions poised to see the steepest gains.

1. The Core Prediction

At the heart of the piece is a forecast that Australian house prices will surge to record highs by 2026, according to a 2025 report by CoreLogic – a leading Australian property data provider. The report, which the Daily Mail links to directly, estimates a 12‑15 % year‑on‑year increase for the national median house price between 2025 and 2026, pushing median prices above the $1.2 million mark in many areas.

The article notes that CoreLogic’s model incorporates several variables: low mortgage rates, a strong demand–supply mismatch, demographic shifts, and the ongoing appeal of Australian real estate as a safe‑haven asset. While the report itself is a paid publication, the Daily Mail offers a brief synopsis of its methodology and key take‑aways.

2. Key Drivers of the Forecast

a. Interest Rates and Mortgage Conditions

Australia’s Reserve Bank of Australia (RBA) has maintained a historically low base rate of 2.5 % (as of early 2025) and has signaled that it is unlikely to hike rates in the near term. The article references a link to the RBA’s latest statement, noting that “the RBA’s accommodative stance will keep borrowing costs low, fueling demand for property.”

b. Housing Supply Constraints

The piece highlights that construction has struggled to keep pace with demand. It cites a link to the Australian Housing and Urban Research Institute (AHURI) report that shows a shortage of roughly 250,000 dwelling units across the mainland by 2026, a figure that dwarfs the supply growth seen in the 2010s. The Daily Mail stresses that this shortage will push prices higher, especially in high‑demand metros.

c. Demographic and Migration Patterns

Internal migration remains robust, with people moving from the densely populated Sydney and Melbourne to outer suburbs and regional centres. The article refers to a government statistics dashboard (link provided) that illustrates the migration flow from Queensland and the Northern Territory into New South Wales, emphasising how these trends contribute to demand in previously under‑priced areas.

d. Investor Activity

Both domestic and overseas investors continue to pour money into Australian real estate. The Daily Mail links to a recent ASIC report on foreign investment in residential property, which shows a 20 % increase in foreign purchase approvals over the past year. This inflow is described as a “fuel” for price appreciation, especially in high‑end market segments.

3. Hot‑Spot Areas Set to Soar

The article goes into detail about specific suburbs and regions that are forecast to experience the sharpest price gains. The Daily Mail’s writer breaks them down by city:

Each bullet point in the article is accompanied by a link to a local news story or council website that discusses infrastructure projects—such as new rail lines or commercial developments—that are expected to boost those suburbs.

• Sydney’s Northern Beaches

The Daily Mail quotes a real‑estate analyst from the Australian Property Institute who says the Northern Beaches will “see double‑digit growth” as a result of the “ongoing demand for coastal properties” and limited new land releases.

• Melbourne’s South Eastern Ring Road

A link to a Melbourne City Council page details the upcoming South Eastern Ring Road extension, which the article suggests will make suburbs like Dandenong more accessible, thereby increasing their desirability.

• Queensland’s Gold Coast

The piece notes that the Gold Coast’s property market has already seen a 9 % jump in the last 12 months, and the CoreLogic model projects another 11 % rise by 2026, thanks in part to the “continued appeal of beachside living.”

4. Expert Commentary

The article incorporates several short quotes from property experts:

• Dr. Fiona McKay, Professor of Urban Economics at the University of Sydney: “The confluence of low interest rates and a supply glut is unprecedented. Prices are likely to climb to levels that may seem outlandish to casual observers.”

• John Bennett, CEO of Australian Real‑Estate Partners: “We’re already seeing a surge in purchase approvals, particularly in the mid‑range price band. Sellers are being forced to price their properties higher to match market realities.”

• Samantha Liu, Senior Analyst at CoreLogic: “While the model is optimistic, it does include a margin of error. It’s a ‘best‑case’ scenario based on current data trends.”

These quotes are supplemented with links to their respective LinkedIn profiles or company websites, allowing readers to verify their credentials.

5. Risks and Caveats

The Daily Mail does not shy away from discussing potential headwinds. It references a link to a Reserve Bank of Australia financial stability report, noting that an “interest‑rate hike” could dampen demand. Other risks highlighted include:

• Economic Slowdown: A slowdown in GDP growth could reduce household income and dampen purchasing power.
• Regulatory Changes: Potential changes to foreign investment rules could curtail overseas demand.
• Supply Shock: Any significant increase in housing supply—such as a large‑scale development boom—could stabilize or even reverse price growth.

The article presents these as “unquantified risks,” acknowledging that the 2026 forecast is contingent on several variables staying within current expectations.

6. Takeaway for Potential Buyers and Investors

In closing, the Daily Mail urges readers to consider both the upside and downside of the projected price surge. For first‑time buyers, the piece notes that waiting until 2026 might be costly. For investors, it suggests that “strategic positioning now—especially in emerging suburbs—could yield significant returns.” The article also offers a quick guide on how to assess a property’s growth potential, linking to a downloadable spreadsheet template and a blog post on property valuation techniques.

Final Thoughts

Overall, the Daily Mail’s article serves as an exhaustive primer on the Australian housing market’s anticipated trajectory over the next few years. By weaving together statistical forecasts, expert insights, and local context, it gives readers a comprehensive view of where property prices are headed and which areas are likely to experience the biggest gains. While the article leans toward a bullish stance, it does acknowledge that the market is susceptible to policy shifts, economic conditions, and supply‑side changes, ensuring that readers receive a balanced, data‑driven outlook.