Authored by the expert who managed and guided the team behind the Australia Property Pack
Everything you need to know before buying real estate is included in our Australia Property Pack
If you're thinking about buying property in Australia in 2026, you're probably wondering whether now is actually a good time to jump in or if you should hold off.
In this article, we break down the current housing prices in Australia, what the data says about where the market is heading, and whether the conditions favor buyers or sellers right now.
We keep this blog post constantly updated so you always have the freshest numbers and insights.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Australia.
So, is now a good time?
Rather yes, January 2026 is a reasonable time to buy property in Australia, but only if you're strategic about what and where you buy.
The strongest signal is that housing supply remains structurally tight, with total listings down about 10% year-over-year and building approvals still falling, which keeps a floor under prices.
Another major signal is that the national vacancy rate sits at just 1.3%, meaning rental demand is strong and finding tenants should be relatively easy if you're buying to rent out.
Population growth from overseas migration (over 300,000 net arrivals in the past year) continues to fuel both rental and purchase demand, while affordability stress means prices are unlikely to spike dramatically either.
The smartest strategy right now is to target well-located apartments or townhouses in high-demand suburbs with good transport links, plan for a medium-to-long-term hold, and budget conservatively in case interest rates stay elevated.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research before making any property decisions.
Is it smart to buy now in Australia, or should I wait as of 2026?
Do real estate prices look too high in Australia as of 2026?
As of early 2026, property prices in Australia look stretched versus incomes, but they're not wildly disconnected from the reality of tight supply and strong demand that's been driving the market.
One clear signal that prices are high is that national median home values reached around A$873,000 by late 2025, which is a record, and yet listings remain scarce rather than piling up unsold.
Another sign is that despite elevated prices, the share of properties with price cuts hasn't spiked dramatically, which suggests sellers still have enough leverage to hold firm on their asking prices in most markets.
You can also read our latest update regarding the housing prices in Australia.
Does a property price drop look likely in Australia as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in Australia over the next 12 months looks low, unless there's an unexpected shock like a sharp rise in unemployment or aggressive credit tightening.
The plausible range for price movement over the next year is roughly flat to up 5%, with a potential downside of 5% to 10% only if economic conditions worsen significantly.
The single most important factor that could trigger a price drop in Australia is a material increase in unemployment, which would lead to forced selling and weaken buyer confidence.
However, a sharp unemployment spike seems unlikely in the near term, given that the Australian economy has remained relatively resilient and the RBA has been cautious about overtightening.
Finally, please note that we cover the price trends for next year in our pack about the property market in Australia.
Could property prices jump again in Australia as of 2026?
As of early 2026, the likelihood of a renewed price surge in Australia is medium, because the conditions for it exist but would need a clear trigger like rate cuts to materialize.
The plausible upside range for Australian property prices over the next 12 months is around 5% to 10%, assuming borrowing conditions ease and demand stays strong.
The single biggest demand-side trigger that could drive prices to jump again in Australia is an earlier-than-expected series of RBA rate cuts, which would quickly improve borrowing capacity and boost buyer confidence.
Please also note that we regularly publish and update real estate price forecasts for Australia here.
Are we in a buyer or a seller market in Australia as of 2026?
As of early 2026, Australia is mostly a seller-leaning market nationally, because demand remains solid while for-sale inventory stays constrained across most cities.
The months-of-inventory in Australia currently sits below the balanced-market threshold of around 5 to 6 months, which means buyers have less choice and sellers can generally hold firmer on prices.
The share of listings with price reductions remains relatively contained, which tells you that most sellers are not feeling desperate and still have decent leverage in negotiations.
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Australia as of 2026?
Are homes overpriced versus rents or versus incomes in Australia as of 2026?
As of early 2026, homes in Australia appear overpriced when you compare purchase costs to typical household incomes, though the picture is more mixed when you look at rents because rental yields vary a lot by location and property type.
The price-to-rent ratio in Australia is elevated compared to a balanced benchmark, meaning in many areas you would need to hold a property for a long time before rental income starts to make sense against what you paid.
The price-to-income multiple in Australia is also high by international standards, with the OECD affordability data showing Australian homes well above long-run norms relative to what people earn.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Australia.
Are home prices above the long-term average in Australia as of 2026?
As of early 2026, property prices in Australia sit clearly above their long-term average on most affordability measures, even if short-term growth has started to moderate slightly.
The recent 12-month price change in Australia was around 8.7% nationally, which is faster than the typical pre-pandemic pace of around 3% to 5% per year and shows the market is still running hot.
When you adjust for inflation, Australian property prices are near or at their prior cycle peak, meaning there hasn't been a meaningful correction yet in real terms.
Get fresh and reliable information about the market in Australia
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What local changes could move prices in Australia as of 2026?
Are big infrastructure projects coming to Australia as of 2026?
As of early 2026, the single biggest infrastructure project with clear price impact potential is the Western Sydney International Airport, which is set to begin operations in 2026 and is expected to lift property values in surrounding employment corridors over time.
The Western Sydney Airport is fully funded and under construction, with operations scheduled to commence in 2026, making it one of the most certain major projects on the horizon for Australian property markets.
Other major projects like Sydney Metro West, Melbourne's Suburban Rail Loop, and Brisbane's Cross River Rail are also reshaping transport access and will likely boost demand in suburbs near new stations over the coming years.
For the latest updates on the local projects, you can read our property market analysis about Australia here.
Are zoning or building rules changing in Australia as of 2026?
The single most important zoning change being discussed in Australia is the push under the National Housing Accord to allow more medium-density housing in established suburbs, which could eventually unlock supply in areas that were previously restricted to single-family homes.
As of early 2026, the net effect of these zoning changes on Australian property prices is likely to be modest in the short term, because reforms take years to translate into actual new homes, but over time they could ease price pressure in affected areas.
The types of areas most affected by these rule changes in Australia are inner-ring and middle-ring suburbs of major cities like Sydney, Melbourne, and Brisbane, where existing zoning has limited development but demand for housing remains strong.
Are foreign-buyer or mortgage rules changing in Australia as of 2026?
As of early 2026, the biggest rule change risk for Australian property prices comes from potential mortgage lending tightening rather than foreign-buyer restrictions, because APRA could adjust serviceability buffers if credit growth accelerates too fast.
On the foreign-buyer side, there are no major new restrictions being actively implemented at the national level, though enforcement of existing rules around foreign investment approval continues.
On the mortgage side, the most likely change would be APRA adjusting the interest rate buffer used in loan serviceability tests, which could quickly affect how much Australians can borrow and therefore how much they can pay for property.
You can also read our latest update about mortgage and interest rates in Australia.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Will it be easy to find tenants in Australia as of 2026?
Is the renter pool growing faster than new supply in Australia as of 2026?
As of early 2026, renter demand in Australia is growing faster than new rental supply, which is why vacancy rates remain so low and landlords generally have little trouble finding tenants.
The clearest signal of renter demand is net overseas migration, which added around 306,000 people to Australia in the year to June 2025, and many of these new arrivals initially enter the rental market.
On the supply side, new dwelling completions are not keeping pace with this population growth, as building approvals fell 6.4% in October 2025, signaling that the pipeline of new rentals is not expanding fast enough.
Are days-on-market for rentals falling in Australia as of 2026?
As of early 2026, days-on-market for rentals in Australia is generally low, which means properties are leasing quickly and landlords are not waiting long to find tenants in most areas.
In the best rental areas like Parramatta, Carlton, Newstead, or Subiaco, days-on-market tends to be even shorter than the national average, while weaker suburbs or oversupplied apartment pockets may take a few weeks longer.
The main reason days-on-market stays low across Australia is persistent undersupply combined with strong population growth, which keeps competition for rentals intense in most metro markets.
Are vacancies dropping in the best areas of Australia as of 2026?
As of early 2026, vacancies in Australia's best rental areas like Zetland and Chatswood in Sydney, Carlton and Richmond in Melbourne, Newstead in Brisbane, and Subiaco in Perth remain very tight, often sitting below the already-low national average of 1.3%.
In these high-demand suburbs, vacancy rates typically run closer to 1% or even lower, compared to the 1.3% national rate, which means landlords in these areas have even more tenant interest to choose from.
One practical sign that the best areas are tightening first is when open inspections start drawing crowds of 10 to 20 applicants for a single property, which is now common in well-located suburbs near major employment hubs, universities, and transport nodes.
By the way, we've written a blog article detailing what are the current rent levels in Australia.
Buying real estate in Australia can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Australia as of 2026?
Is for-sale inventory shrinking in Australia as of 2026?
As of early 2026, for-sale inventory in Australia is down roughly 10% compared to the same time last year, which means buyers have fewer options and competition for good properties remains stiff.
Months-of-supply in Australia currently sits below the 5 to 6 month level that typically indicates a balanced market, which is why sellers generally have the upper hand in negotiations.
The main reason inventory is shrinking in Australia is that many existing homeowners are reluctant to sell and move because they locked in low mortgage rates years ago and don't want to take on higher borrowing costs for a new property.
Are homes selling faster in Australia as of 2026?
As of early 2026, homes in Australia are selling relatively quickly in most markets, with median days-on-market remaining compressed due to low inventory and steady buyer demand.
Compared to last year, median days-on-market in Australia has stayed roughly stable or slightly faster in high-demand capitals like Sydney and Melbourne, though some regional areas have seen a modest slowdown.
Are new listings slowing down in Australia as of 2026?
As of early 2026, new for-sale listings in Australia are down about 3% year-over-year nationally, though Sydney and Melbourne have actually seen slight increases while other cities remain softer.
Seasonally, Australia typically sees new listings pick up in spring (September to November) and slow down over the summer holidays, so the current levels are roughly in line with normal patterns but on the lower end.
The most plausible reason new listings are subdued in Australia is that homeowners with low fixed-rate mortgages are reluctant to sell and re-enter the market at today's higher borrowing costs, a pattern often called "rate lock-in."
Is new construction failing to keep up in Australia as of 2026?
As of early 2026, new housing construction in Australia is falling short of household demand, with the NHSAC explicitly describing a persistent supply gap that won't be closed quickly.
Building approvals dropped 6.4% in October 2025, and multi-unit approvals fell even more sharply, which means the forward pipeline of new homes is weakening rather than strengthening.
The biggest bottleneck limiting new construction in Australia is a combination of high construction costs, labor shortages, and financing challenges for developers, which makes many projects unviable even when demand exists.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Australia as of 2026?
Is resale liquidity strong enough in Australia as of 2026?
As of early 2026, resale liquidity in Australia is generally strong in major metro areas, meaning well-priced homes in good locations typically sell within a reasonable timeframe without significant discounting.
Median days-on-market for resale homes in Australia's capital cities currently sits in the 30 to 50 day range, which is consistent with healthy liquidity benchmarks where properties move without sitting unsold for months.
The property characteristic that most improves resale liquidity in Australia is location near transport hubs, employment centers, or quality schools, because these areas consistently attract multiple buyers even when the broader market softens.
Is selling time getting longer in Australia as of 2026?
As of early 2026, selling time in Australia has stabilized after the rapid sales pace of 2021 to 2022, and is not noticeably lengthening compared to last year in most markets.
Current median days-on-market in Australia typically ranges from around 25 days in hot suburbs to 60 days or more in slower pockets, with the national average sitting somewhere in the 35 to 45 day range.
One clear reason selling time can lengthen in Australia is affordability pressure, because when buyers struggle to qualify for mortgages at current rates, fewer people can make offers and sellers have to wait longer or reduce their price.
Is it realistic to exit with profit in Australia as of 2026?
As of early 2026, the likelihood of selling with a profit in Australia is medium-to-high if you hold for at least 5 to 7 years, but more uncertain for shorter holding periods given current elevated prices and transaction costs.
Most property investors in Australia need to hold for at least 5 years to realistically cover transaction costs and achieve meaningful capital gains, though in strong markets some have done well with 3 to 4 year holds.
The total round-trip cost of buying and selling property in Australia, including stamp duty, agent fees, legal costs, and other expenses, typically runs between A$50,000 and A$100,000 on a median-priced home, which is roughly US$32,000 to US$65,000 or EUR 30,000 to EUR 60,000.
The single factor that most increases profit odds in Australia is buying in a location with strong long-term demand drivers like transport upgrades, job growth, or proximity to hospitals and universities, because these areas tend to outperform even in softer markets.
Get the full checklist for your due diligence in Australia
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Australia, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Australian Bureau of Statistics (ABS) - Total Value of Dwellings | Australia's official statistics agency and primary source for dwelling values. | We used it to anchor official median values and validate private index data. We treated ABS as the baseline for triangulating price levels across sources. |
| ABS - Building Approvals | Official measure of new housing entering the construction pipeline. | We used it to assess whether new supply is accelerating or stalling. We translated approval trends into future stock pressure estimates. |
| Reserve Bank of Australia - Cash Rate Target | The official record of the policy rate that drives mortgage pricing. | We used it to set the cost-of-money context for buyers in 2026. We treated cash rate settings as the main swing factor for price risk. |
| RBA - Statement on Monetary Policy (Nov 2025) | The RBA's flagship macro and forecast document including housing outlook. | We used it to anchor rate and outlook discussions in official forecasts. We tested whether near-term rate reversals looked likely. |
| APRA - Property Exposure Statistics | Banking regulator data showing how housing lending is evolving. | We used it to assess credit risk and lending trends. We treated it as an early warning system for lending-driven price swings. |
| NHSAC - State of the Housing System 2025 | Government-established council focused on supply and affordability analysis. | We used it to ground the structural shortage story in a formal report. We stress-tested crash narratives against their supply findings. |
| OECD Affordability via Housing Data Portal | Official Australian portal republishing transparent OECD affordability metrics. | We used it to benchmark price-to-income positioning versus history. We treated it as the cleanest cross-country affordability comparison. |
| PropTrack - Home Price Index (Nov 2025) | Major methodology-transparent index using broad sales data. | We used it to estimate national price growth, medians, and segment splits. We cross-checked its signals against ABS and Cotality indexes. |
| REA Group - Listings Report (Oct 2025) | Clearest high-frequency read on supply for sale in Australia's biggest marketplace. | We used it to gauge market tightness through stock and new listing trends. We translated listing scarcity into buyer versus seller power dynamics. |
| Cotality (CoreLogic) - Home Value Index (Nov 2025) | Widely cited home value index with consistent methodology and broad coverage. | We used it to corroborate price change direction entering 2026. We also used city-level data to identify where risks differ across Australia. |
| SQM Research - National Vacancy Rates (Nov 2025) | Long-running, widely referenced source for rental vacancy metrics. | We used it to quantify rental tightness and tenant demand. We treated vacancy as the simplest check on landlord market power. |
| Australian Treasury - National Housing Accord | Official policy framework for increasing housing supply. | We used it to evaluate supply-side policy and reform timelines. We assessed whether policy is enough to change the balance soon. |
| Infrastructure Australia - Priority List | National body assessing priority infrastructure needs and opportunities. | We used it to identify where major transport and urban investments are concentrated. We connected access improvements to likely demand uplift zones. |
| Western Sydney Airport | Official project source on Australia's newest major airport. | We used it as an example of a macro catalyst shifting demand in specific corridors. We illustrated why infrastructure maps matter for suburb selection. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.