Australia Property Market: Preparing for 2026
2025 delivered strong housing market gains, with national dwelling values rising around 8.6%. While smaller capitals like Brisbane, Perth, and Adelaide saw the strongest growth, Sydney and Melbourne experienced a slowdown in December 2025, signalling a cooling trend.
Some economists attribute this moderation to affordability pressures, higher borrowing costs, and tighter lending conditions, while demand remains strong in lower and mid-priced segments, supported by first-home buyer incentives.
Key Insights for 2026
Growth-trend, however at a slower pace than 2025 – Analysts forecast national prices to rise modestly, rather than at the breakneck pace of 2025.
Capital city divergence – Mid-sized and regional markets may outperform Sydney and Melbourne, where affordability limits price growth.
Interest rates and credit conditions matter – Any changes from the Reserve Bank could influence borrowing power and buyer confidence.
Affordability continues to shape demand – Lower and mid-priced properties, often supported by government schemes, remain the most high-demand segments.
How to Approach the Market
2026 will be a year for strategic planning and preparation:
Review your borrowing capacity and get pre-approval ready.
Focus on properties within your financial comfort zone.
Stay informed about RBA policy changes, interest rates, and local supply trends.
Being prepared and informed will help you navigate a market that is moving from a high-growth phase into a more measured environment.
If you’re a first home buyer, investor or looking to upgrade your home book a free consultation today and get personalised guidance to make the most of this year’s opportunities.
