FLPG Monthly Property Newsletter edition 01

📈 December 2025 Residential Property Market Report

National Residential Prices Strengthen as Brisbane & Adelaide Lead the Charge

Welcome to this month’s property market update. The latest SQM Research data covering asking prices to 2 December 2025 and rental trends to 28 November 2025 paints a clear picture: Australia’s property market is still trending upward, with momentum strongest in Brisbane, Adelaide and selected affordable-unit markets. Meanwhile, Sydney and Melbourne continue a steadier, more sustainable growth trajectory.

Below is a breakdown of how each capital city performed — and what it means as we head toward 2026.

🏡 NATIONAL SUMMARY — Prices & Rents Still Rising

Across all dwelling types, the national asking price index is up 1.0% for the month and 11.1% year-on-year, confirming that demand remains resilient despite tighter lending conditions.

Rents also continue to rise nationally, with:

• Houses up 5.6% YoY

• Units up 5.1% YoY

Vacancy remains historically low, investor activity is slowly improving, and population growth continues to support sustained demand.

🔥 MARKET LEADERS: Brisbane & Adelaide

Brisbane — Best Overall Growth in Australia

Brisbane has surged ahead as the strongest capital city market:

• Houses: +2.7% rolling month, +15.1% YoY

• Units: +4.0% rolling month, +23.7% YoY (fastest nationwide)

Brisbane units have become the standout national performer, driven by: ✔ Relative affordability ✔ Strong interstate migration ✔ Tight rental markets ✔ High demand for well-located medium-density stock

This momentum positions Brisbane as a continued hotspot for investors and developers moving into 2026.

Adelaide — The Quiet Achiever Continues to Impress

Adelaide continues its multi-year run of consistent growth, offering one of the strongest stability profiles in the country:

• Houses: +3.0% month, +14.5% YoY

• Units: +0.9% month, +22.1% YoY

A balanced market with low volatility and strong demand fundamentals keeps Adelaide firmly in the "undervalued but rising" category.

🌊 SYDNEY & MELBOURNE — Slow, Steady, Sustainable

Sydney

Sydney remains the premium market with steady upward movement:

• Houses: +1.5% month, +9.7% YoY

• Units: +0.3% month, +6.0% YoY

Demand remains strong for quality stock, but affordability constraints continue to cap runaway growth. Stability is the theme here.

Melbourne

Melbourne’s recovery continues, though at a moderate pace:

• Houses: +0.5% month, +5.6% YoY

• Units: +0.4% month, +7.7% YoY

As affordability improves and migration picks back up, 2026 may see Melbourne shift gears from “stabilising” to “strengthening.”

🏝 PERTH, DARWIN & HOBART — Mixed but Positive Trends

Perth

Perth shows slight softening in weekly house prices but remains well above last year:

• Houses: -0.2% month, +8.0% YoY

• Units: +1.4% month, +18.5% YoY

Growth remains solid, though early signs suggest the pace may be normalising.

Darwin

Darwin’s market shows a surprisingly strong rebound:

• Units: +18.3% YoY

• Houses: +12.8% YoY

Affordability and yield-based investor activity are key drivers here.

Hobart

A mixed picture, but still positive year-on-year:

• Houses: -1.0% month, +6.8% YoY

• Units: +3.5% month, +5.4% YoY

House prices eased slightly, but units remain resilient.

🏠 RENTAL MARKET — Strong Demand, Limited Supply

Rents increased in most cities, with notable strength in:

• Hobart Houses: +12.0% YoY

• Hobart Units: +8.4% YoY

• Brisbane Houses: +7.1% YoY

• Sydney Houses: +6.9% YoY

• Darwin Units: +8.1% YoY

With national vacancy rates still near record lows, rental pressure is expected to persist into 2026, supporting investor yields across most capital cities.

🔎 WHAT THIS MEANS MOVING FORWARD

For Investors

Medium-density markets in Brisbane and Adelaide offer the strongest upside potential. Yields remain competitive and demand is outpacing supply.

For Developers

Rising rents and strong absorption rates in Brisbane and Adelaide create favourable conditions for townhouse and apartment projects. Feasibility margins are tightening elsewhere — but opportunities remain in pockets with strong rental growth.

For Homebuyers

Expect ongoing competition in established suburbs, especially in Sydney, Brisbane, and Adelaide. Conditions are still favourable for buyers in selected areas of Melbourne and Perth.

📌 FINAL WORD: Momentum Into 2026

With national prices up 11% YoY and rents continuing to rise, the Australian property market enters 2026 with solid momentum. Demand fundamentals remain strong, construction supply remains constrained, and affordability pressures are reshaping the map of where growth is strongest.

Brisbane and Adelaide continue to be the standout markets, while Sydney and Melbourne move steadily upward at a sustainable pace.

If you’d like suburb-specific analysis, feasibility modelling, or support sourcing your next site or investment, I’m always here to help.