Australian property values rose 0.8% in January, according to Cotality’s latest Home Value Index, a subtle acceleration from the 0.6% increase recorded in December[i].

Following decent growth of almost 9% in 2025, Raine & Horne expects similar national property price gains in 2026, despite the Reserve Bank of Australia increasing the official cash rate by 0.25% at its February meeting.

The mid-sized capitals continued their solid growth run in January, with Perth values up 2.0%, the strongest gain across the capitals. Next best was Brisbane (+1.6%) in January, and Adelaide (+1.2%).

Significantly, regional markets delivered a stronger growth outcome in January, with the combined regionals index up 1.0% in January compared with a 0.7% rise across the combined capitals. Regional SA was standout with growth of 2.1% just ahead of regional WA (+1.9%)

Tim Lawless, Cotality’s research director, Cotality, “The ongoing capital gains reflect persistently low inventory in the face of above average housing demand, however we are likely to see demand side pressures gradually ease in 2026.”

Listings jump nearly 40% in January as appraisal activity accelerates

Almost on cue, research from Raine & Horne shows that while listings nationally were slightly lower year-on-year in January, they jumped almost 40% between December 2025 and January 2026.

Appraisals also increased by more than 75% month-on-month, a result that suggests there should be plenty of properties hitting the market for the autumn sales season. Significantly, buyer numbers held up with attendances at open for inspections across Australia up 3% year-on-year

Angus Raine, Executive Chairman, Raine & Horne, said, “We know that appraisals in summer translate to sales in autumn, and the healthy volume of appraisals we had in December and January points to a very robust property market as we head into late summer, early autumn 2026.” Angus said.

Indeed, it already seems an early autumn market is in prospect with listings jumping by 40% in January, which makes a lot of sense as Easter and the school holidays are only eight weeks away, and many buyers will be desperate to have their property plans bedded down before the holiday season.”

The rate hike we all saw coming

Angus added, “While today’s rate hike isn’t great news for borrowers, tightening the official cash rate earlier rather than later should help put the inflation genie back in the bottle.

“With buyer numbers holding strong at open for inspections, it’s fair to expect this rate rise will prove a small blip in the real estate market, not a turning point.”

Angus has been direct in attributing responsibility for the latest rate hike to the expansion of the Federal Government’s 5% Deposit Scheme in late 2025. “We know from past experience that government initiatives designed to help buyers enter the market sooner tend to lift demand without increasing supply, which ultimately pushes prices higher.

“We’re seeing that dynamic play out right now following the expansion of the 5% Deposit Scheme in late 2025.”

Address supply issues now

While the Federal Government’s plan to build 1.2 million new homes will boost supply over time, Angus argues it is a long-term solution and that immediate policy reform is needed to unlock existing housing stock.

He has long called for a two-year capital gains tax (CGT) exemption for property investors aged over 60, designed to encourage the sale of long-held properties and increase supply for first-home buyers and upgraders.

“Property held by older investors contributes to supply constraints in our capital cities,” Angus said. “A time-limited, means test-free CGT exemption could help break the current supply impasse.”

With the Federal Budget due in May, Angus said he hoped policymakers would focus on short-term fixes, while also urging state and territory governments to reduce stamp duty for empty-nesters looking to downsize.

Home Value Index January 20206

 (Source: Cotality Home Value Index 2 February 2026)

If you’re considering making a move this autumn, contact your local Raine & Horne agent today.

[i] https://discover.cotality.com/hubfs/Article-Reports/COTALITY%20HVI%20Feb%202026%20FINAL%201.pdf