By Kieran Clair
The Australian property market heading into 2026 won’t be a single story. It will be many stories, told in parallel.
And that’s actually good news for REBAA professionals, because if you know how to read the room, there are opportunities to for your clients.
Last year, the REBAA committee released a market outlook to the media that paints a picture of stable yet divergent conditions across the nation’s capitals and regions – a forecast shaped by federal housing schemes, state reforms, persistent affordability challenges, and the realisation that interest rates aren’t going anywhere fast.
For buyers’ agents, this means one thing: REBAA members applying specialist-level preparation, local knowledge, and strategic thinking will stand in stark contrast to other less-qualified operators who rely on market momentum alone to support their opinions.
REBAA President Melinda Jennison put it plainly in our release: demand for well-located, quality homes and investment-grade assets has remained solid, even as buyers adjust expectations on budget, location and dwelling type. Translation? Your clients have become pickier for good reason – and that’s where professional guidance becomes invaluable.
The introduction of the Federal Government’s First Home Guarantee Scheme has already noticeably shifted buyer behaviour. Lower-value market tiers and more affordable corridors continue to attract strong interest, particularly first homebuyers working within the scheme’s price caps.
We’re also in a moment where the outlook on interest rate cuts has turned on a dime. Not too long ago, there were predictions of a pending reduction. Now we have some economists predicting the next move in the cash rate with be up, not down.
So what can be expected in property markets across Australia in 2026?
New South Wales prices remain robust on the back of undersupply and high overseas immigration numbers. Sydney is a story of scarcity, not frenzy – listing numbers remain below historic averages, rents continue at record highs, and vacancy rates are tight. The spread into middle-ring suburbs and transport corridors will intensify this year as inner-city affordability becomes more stretched. That said, NSW rental reforms that came into effect mid-year are creating some uncertainty among landlords, and we’ve heard stories of investors who are considering selling or switching asset classes. That could present an opportunity for your buyer clients looking for a savvy entry into the market as the year progresses.
After a flat 2024, Melbourne prices climbed steadily through the second half of 2025, with October delivering the biggest auction weekend in four years and a solid 72 per cent clearance rate. Behind this resurgence is the extra stock that has been absorbed, with demand now exceeding supply in prime markets, building approvals remaining at record lows, and strong immigration.
Investors are circling again, drawn by Melbourne’s affordability advantage. Some banks are forecasting Melbourne to be one of Australia’s strongest performers in 2026, with price growth around 10 per cent predicted by a few. For buyers’ agents, this creates a rare countercyclical window right now. Prices remain below previous peaks, sentiment is improving, yet competition hasn’t reached fever pitch. High-quality, investment-grade homes in tightly held suburbs could prove genuinely rewarding over the next 12 to 24 months.
Brisbane remains one of Australia’s most compelling capital city markets. Low stock levels, tight days-on-market, and immediate buyer interest define the landscape. Townhouses and units are seeing elevated demand as buyers trade dwelling type for affordability, but demand for detached homes in established suburbs remains extremely high. Regional Queensland – from Toowoomba to the Fraser Coast – continues to benefit from lifestyle, interstate migration, and strong rental yields.
Perth’s story is one of sustained strength. With dwelling values up 9.4 per cent year-to-date and the First Home Guarantee now in play, the sub-$850,000 price point is experiencing particularly fierce competition. Regional Western Australia is even stronger, with median values up 13.5 per cent over 12 months. It’s the kind of market where buyers with cash reserves and the ability to act decisively can achieve exceptional outcomes.
South Australia and Tasmania will continue to capitalise on affordability and lifestyle appeal. Record-high prices across virtually all Adelaide suburbs, coupled with rental yields of 4.7 per cent (well above the national average of 3.7 per cent), continue to attract investors. Tasmania’s First Home Guarantee price caps have created pockets of exceptional demand, too, with open homes regularly attracting 30 to 40 groups.
The headline for 2026 is simple: overall housing supply remains the critical pressure point everywhere. Unless there’s a noticeable uplift in both construction and listings across the country, conditions will stay tight, competition will persist, and price growth will remain – albeit at uneven rates across locations.
For buyers’ agents, this is precisely the environment where your value shines. You’re not just opening doors. You’re sourcing off-market and pre-market opportunities, providing independent advice on pricing and risk, and guiding clients through negotiations and due diligence.
In a market where conditions diverge by suburb, state, and strategy, that professional expertise will prove an essential advantage to purchasers.
