Two-speed market: Perth dwellings up 2.1% in April as Sydney and Melbourne both fall 0.6%

Cotality data shows Perth's median dwelling value rose more than $21,000 in a single month while Sydney slipped below its November 2025 peak. The borrower implications for both buying and refinancing.

Cotality's April 2026 home value index shows Australia's housing market splitting sharply by city. Perth's median dwelling value gained 2.1% in a single month — adding more than $21,000 — while Sydney (-0.6%) and Melbourne (-0.6%) both went backwards. Sydney is now 1.0% below its November 2025 peak; Melbourne sits 1.9% below the high it set in March 2022 and has effectively spent four years going sideways. Brisbane and Adelaide are described as on track for "double-digit growth rates" over 2026.

What's driving the divergence

Cotality research director Tim Lawless and Domain chief residential economist Dr Nicola Powell both point to the same set of forces: affordability has become binding in Sydney and Melbourne, where price-to-income ratios are stretched and borrowing capacity has been eroded by elevated rates. Perth, Brisbane and Adelaide remain materially cheaper relative to incomes, are seeing strong inbound migration, and have tighter housing supply than the eastern capitals.

REIWA president Suzanne Brown notes Perth's situation: tight stock, above-average population growth, and demand still robust despite rising listings. There are "nascent signs of cooling," but it's too early to call the peak.

REIQ CEO Antonia Mercorella warned that rising co-tenancy in Queensland — driven by affordability stress — "is not likely to be a long-term solution" without underlying supply being addressed.

What this means for buyers

If you're an FHB or upgrader looking at Sydney or Melbourne: the price weakness is real but modest. A 0.6% monthly fall on a $1.1m Sydney home is about $6,600 — meaningful, but not a market crash. The bigger constraint is borrowing power, which has been crunched by both rates and serviceability buffers. Use our [borrowing power calculator](/calculators/borrowing-power) to see what you actually qualify for at current settings before you commit to a price bracket.

If you're looking in Perth, Brisbane, or Adelaide: the trend is the opposite — supply is tight, prices are rising, and waiting tends to cost money. The strategy here is less "time the market" and more "make sure your finance is pre-approved so you can move fast on the right property."

What this means for existing borrowers

This is where the divergence creates an opportunity. Anyone who bought in Perth, Brisbane, or Adelaide more than 12 months ago has likely seen meaningful equity growth — pushing many loans below 80% LVR and opening up:

- **LMI removal**: if you previously paid LMI to buy with under 20% deposit, a fresh valuation that puts you under 80% LVR can let you refinance to a product without LMI. - **Better-tier pricing**: lender pricing tiers tighten meaningfully under 80% LVR. The cheapest variable rates in our [live index](/home-loans/cheapest) are typically reserved for sub-80% LVR borrowers. - **Equity release**: if you're considering an investment property purchase, equity in the family home can fund the deposit on the next one without selling.

For Sydney and Melbourne borrowers, the picture is more mixed. If you bought near the peak in November 2025 (Sydney) or March 2022 (Melbourne), you may be in a position where your LVR has crept back up. That's a reason to sit tight on the current loan rather than refinance, and let prices recover before triggering a fresh valuation.

What you should do now

Run a current valuation. Most lenders offer free desktop or kerbside valuations to existing customers. If your LVR has moved meaningfully one way or the other, that changes what's available to you.

Run the [refinance savings calculator](/calculators/refinance-savings) to see whether the rate gap on your current loan justifies a switch. With major banks expected to pass through any May RBA hike within 1-2 weeks, this is a useful week to know your position before the rate sheet moves.

This article references [Cotality](https://www.cotality.com.au) Home Value Index data for April 2026, plus public commentary from REIWA and REIQ.