Property Market Outlook 2026: What Buyers and Investors Should Expect
As 2025 draws to a close, Australia’s property market has once again proven its resilience. Despite higher living costs, construction delays, and shifting buyer sentiment, property values have held firm – and in many regions, continued to rise.
Looking ahead, all signs suggest 2026 could mark a turning point. With interest rate cuts on the horizon, continued population growth, and a persistent housing shortage, both buyers and investors are preparing for what could be the next phase of market growth.
Here’s what to expect as we move into 2026.
1. Interest Rate Cuts Could Reignite Buyer Demand
After a period of stability following the Reserve Bank’s tightening cycle, most economists anticipate interest rate cuts in 2026. Lower borrowing costs will directly improve buyer affordability and serviceability, giving many Australians, especially first home buyers and investors – renewed confidence to act.
Historically, when interest rates begin to fall, property activity rises. While price growth may start modestly, it often accelerates as confidence builds.
2. Housing Supply Will Remain Tight
Despite ambitious government housing targets, the supply of new homes is still well below demand. Construction costs, land release delays, and planning bottlenecks continue to restrict new housing delivery.
For buyers, this means competition for quality stock is likely to intensify. For investors, the undersupply supports stronger rental yields and long-term capital growth — particularly in growth corridors around Melbourne and major regional hubs.
3. Population Growth Will Keep Demand High
Australia’s population growth remains one of the strongest in the developed world, driven by migration and natural increase. With most new arrivals renting first, demand for housing, especially in Melbourne and nearby regional centres – is set to remain high well into 2026.
This will continue to place upward pressure on both rental prices and property values, particularly in suburbs that combine affordability, infrastructure, and accessibility.
4. Regional Markets Will Stay on the Radar
Regional hubs like Geelong, Ballarat, and Bendigo are expected to remain strong performers in 2026. Improved infrastructure, lifestyle appeal, and better connectivity to Melbourne make these markets attractive alternatives for both homeowners and investors.
As affordability challenges persist in the city, regional areas could see a second wave of growth as buyers look further afield for value.
5. Investors Will Gradually Return
With interest rates likely easing and rental conditions remaining tight, investor activity is expected to increase. After several years of caution, many will see 2026 as a window to re-enter the market, particularly those looking to leverage existing equity and expand their portfolio.
High rental yields, strong depreciation benefits, and limited supply of brand-new properties will all help drive renewed investment confidence.
6. Brand New and Off the Plan Properties Will Stay in Demand
For both first home buyers and investors, off-the-plan and brand-new homes continue to present strategic advantages:
- Stamp duty savings (in many cases)
- Modern, low-maintenance designs
- Attractive depreciation benefits
- High appeal to tenants
As buyers increasingly prioritise energy efficiency, comfort, and long-term value, demand for quality new developments will remain strong through 2026.
Final Thoughts
While 2025 has been a year of adjustment, 2026 is shaping up to be a year of opportunity. With the potential for lower interest rates, ongoing population growth, and a persistent housing shortage, conditions are aligning for renewed confidence and steady market momentum.
At Crest Property Investments, we help clients make informed property decisions – whether you’re buying your first home, expanding your portfolio, or seeking quality brand-new and off-the-plan opportunities.
If you’d like to understand where the best opportunities may lie in 2026, get in touch with our team. We’ll help you plan your next move with confidence and clarity.
Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
December 2025
