MPFG Capital | Non-Bank Lender Australia

Perth and Brisbane Surge While Sydney and Melbourne Soften

Australia's property market is splitting into two distinct stories in April 2026. Cotality's latest housing data (previously released under the CoreLogic brand) shows Perth and Brisbane continuing to record strong price growth driven by supply constraints and sustained investor demand — while Sydney and Melbourne navigate the early stages of a market downturn.

The Numbers: What Cotality's April 2026 Data Shows

According to Cotality's April 2026 Monthly Housing Chart Pack:

Perth remains Australia's strongest performing capital city market, sustained by limited housing stock and ongoing interstate and overseas migration
Brisbane continues to post above-average growth, with tight listings and investor activity keeping prices elevated despite affordability pressures
Sydney and Melbourne are in the early stages of a downturn, with values easing from peak levels as higher interest rates weigh on buyer sentiment and borrowing capacity
Mid-sized capitals (Adelaide, Hobart, Darwin) are also holding up, continuing to break record highs in some categories

The divergence is stark: while some markets are cooling, others show no signs of letting up.

Why Perth and Brisbane Are Different

Several structural factors are driving the continued growth in Perth and Brisbane:

Perth:

Extremely tight housing supply relative to population growth
Strong migration inflows, including skilled workers and interstate relocators
Resource sector employment supporting high-income buyers
Relatively lower entry prices compared to Sydney and Melbourne (though this gap is narrowing rapidly)

Brisbane:

Post-2032 Olympics infrastructure investment sustaining long-term confidence
Continued interstate migration from NSW and Victoria
Investor demand from buyers priced out of Sydney seeking yield and growth
Supply still not keeping pace with demand in the sub-00K bracket

What This Means for Borrowers in Growth Markets

Buying in a surging market creates a different set of challenges compared to buying in a flat or declining one.

Speed is critical. When good properties are listed in Perth and Brisbane, competition is intense. Buyers without pre-approval — or with pre-approvals from lenders who are slow to respond — can miss out entirely. Non-bank lenders with faster processing times give buyers a meaningful edge.

LVR calculations shift rapidly. In a rising market, property valuations can lag behind actual sale prices. A formal valuation conducted weeks before settlement may come in below the purchase price, creating a gap that buyers need to cover from their own funds. Non-bank lenders with more flexible valuation approaches can sometimes navigate this challenge more effectively than the Big Four.

Investment financing in high-growth markets. For investors looking to purchase in Perth or Brisbane, borrowing capacity and LVR limits are key considerations. Non-bank commercial and investment loan products can offer different terms than standard residential lending, particularly for buyers with non-traditional income profiles.

Self-employed buyers in growth markets. Many small business owners and self-employed buyers are active in both the Perth and Brisbane markets — particularly in trades, hospitality, and retail sectors that have benefited from the regional economic growth. Alt Doc loan options allow these buyers to demonstrate borrowing capacity through BAS statements or accountant letters, rather than the payslip-and-tax-return requirements that create barriers at major banks.

The RBA Context

The RBA held the cash rate at 4.10% at its March 2026 meeting. The next scheduled decision is 5 May 2026. Market expectations are mixed on whether further tightening is likely, with inflation (CPI at 3.7% annually as at February 2026, per the ABS) still above the RBA's 2–3% target band. Borrowers in growth markets should ensure their borrowing capacity calculations allow for the possibility of further rate rises.

Bottom Line

Perth and Brisbane are performing strongly, and for buyers in those markets the key is moving quickly and having flexible financing in place. Whether you are a first home buyer, an upgrader, or a property investor, speaking to a non-bank lender alongside your bank can open up options you might not have considered.

This article is for general information purposes only and does not constitute financial advice. Lending outcomes depend on individual circumstances. MPFG Capital holds Australian Credit Licence 553698.