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Two-speed property market widens as mid-sized capitals surge ahead

New data shows a widening gap between Australia’s strongest performing capital city markets and the softer conditions persisting in Sydney and Melbourne, reinforcing the existence of a clear two-speed housing market.

Wentworth Point, a suburb in western Sydney with newly built residential high-rise apartments on the Parramatta River.
House prices in the Harbour City are set to grow at 5.8 per cent and units by 5.3 cent this year, with Western Sydney (pictured) behind much of the gains. (Image source: Elias Bitar/Shutterstock.com)

A huge gulf has opened up between the property markets of Sydney and Melbourne and the three mid-sized capitals.

Perth, Brisbane and Adelaide have firmly moved back into unabashed boom territory while Sydney and Melbourne

are barely in growth territory.

It re-establishes a capital growth hierarchy that has been entrenched for the past few years but which had in the latter months of 2025 showed signs of unwinding.

The national change in dwellin…

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