National prices see weakest month since January 2025
Dwelling price growth across Australia has slowed markedly, according to the May 2026 Housing Monitor published by National Australia Bank (NAB), with national prices rising just 0.3% in April — the softest monthly gain in more than a year.
Over the year to April, dwelling prices remain 9.8% higher, with a national median value of approximately $940,000.
Sydney and Melbourne each fell 0.6% over the month, and when combined with downward revisions to prior readings, the data now point to a more pronounced loss of momentum in both cities. On a three-month annualised basis, Sydney prices declined 3.7% and Melbourne prices fell 6%.
In contrast, mid-sized capitals continued to record strong gains. Perth led all cities with monthly growth of 2.1% and annual growth of 26.0%, followed by Darwin at 1.3% for the month and 19.6% over the year. Brisbane rose 1.2% in April, taking its annual gain to 19.7%. Adelaide and Hobart also recorded positive monthly figures, at 1.1% and 0.2% respectively.
Combined regional markets outperformed combined capitals, rising 0.9% in April and 12% over the year.
Dwelling Prices – April 2026
Source: Cotality
The value of new housing loan commitments fell 3.8% quarter-on-quarter in the first quarter of 2026, with both owner-occupier and investor lending contracting following strong growth in the second half of 2025. Despite this pullback, overall lending activity remains approximately 10% above its mid-2022 peak. Investor lending is 25% higher over the year. Housing loan arrears remainu contained at around 1% of outstanding balances.
Recent changes to capital gains tax (CGT) and negative gearing are expected to reduce incentives for low-yielding, high-debt investment in established property. The report notes this may weigh modestly on house price growth, while offering a benefit to broader financial stability.
Meanwhile, the rental market remains under pressure, with vacancy rates near record lows at 1.7% nationally. Advertised rents growth, measured on a six-month annualised basis, edged lower to 5.7% in April but remains elevated.
On the supply side, dwelling starts have risen since late 2023, led by the apartment sector, though starts continue to outpace completions. Approximately 235,000 dwellings remain under construction — around 35% above the 2010–2019 pre-pandemic average. Apartment and townhouse construction activity is particularly elevated in New South Wales and Queensland.
Construction costs remain a constraint. Material input prices, as measured by the producer price index, rose 0.6% in the first quarter and are 39% above pre-pandemic levels. The report notes these figures largely pre-date the recent Middle East conflict, with the NAB Business Survey pointing to renewed upward pressure on construction purchase costs. Labour constraints also persist, with 88% of construction firms reporting some degree of labour restriction.
Completion times for detached houses shortened modestly in 2024–25 but lengthened for apartments. Western Australia recorded the longest average completion time for detached houses at 13.1 months, followed by the ACT at 11.3 months.
Construction costs and permit delays were identified as the primary barriers to commencing new housing developments, according to NAB's residential property survey.
Approximately two-thirds of Australian households own their home, while around 30% rent. Detached dwellings account for roughly 70% of all housing tenure nationally, a share that is lower in Sydney and Melbourne.
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