Sydney & Melbourne House Prices Set to Soar in 2026: What It Means for Buyers and Investors
- Entre Shield
- Jun 21
- 2 min read
Source: Domain
Australia’s two biggest property markets are making headlines again — and for good reason. According to the Domain Forecast Report FY2026, Sydney’s median house price is tipped to reach a jaw-dropping $1.83 million, while Melbourne is set to bounce back with a 6% rise to hit $1.11 million.
This resurgence marks a return to dominance for Sydney and Melbourne after years where cities like Perth, Brisbane, and Adelaide led the charge. With interest rate cuts on the horizon and strong buyer sentiment, experts say we’re entering a new growth cycle — especially in interest rate-sensitive Sydney.
In fact, Sydney house prices are forecast to grow faster than the average salary, gaining over $112,000 in value in just 12 months. Melbourne, coming off a quieter two-year spell, is already seeing investors re-enter the market — many leveraging gains from cities like Perth. Meanwhile, units in both cities are becoming more attractive for first-home buyers priced out of the house market, with Melbourne units forecast to grow 5%, reaching $584,400.
What does this mean for buyers and investors? If you're sitting on the fence, now may be the moment to act. With rising competition, improving affordability conditions, and a shifting market dynamic, both Sydney and Melbourne are poised to lead Australia's next property upswing.
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