Australia's property market, which demonstrated substantial activity in 2025, is anticipated to experience moderated growth in 2026.
Market Projections for 2026
- A deceleration in property price growth is expected.
- The risk of interest rate increases remains, which could impact borrowing costs.
- Rising borrowing costs may contribute to negative growth in certain property sectors.
Factors Influencing Market Segments
Despite a general slowing, specific market segments are projected to maintain activity:
- Affordable Market: This segment is supported by:
- Government-backed initiatives for first-home buyers.
- A re-engagement of investors.
- Sustained demand for budget-friendly properties.
- Higher-Priced Segments: These areas are expected to experience a reduction in growth.
Preceding Market Performance (2025)
The anticipated moderation follows a period of significant expansion over the past 12 months. This period was characterized by:
- Double-digit house price growth across numerous regions nationwide.
- Strong performance in cities such as Perth, Adelaide, and Brisbane.
- Contributing factors included low housing inventory and a period of declining interest rates.