Authored by the expert who managed and guided the team behind the Australia Property Pack
Get all the data you need about the real estate market in Australia
Australia’s housing market in 2026 is still expensive, but the pace has clearly slowed.
In this blog post, we talk about current housing prices in Australia, rental demand, foreign-buyer rules, lending, risk, and the places where demand is still strongest.
We constantly update this blog post because the real estate market in Australia changes quickly, especially when interest rates, migration and construction approvals move.
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.
How’s the real estate market going in Australia in 2026?
What's the average days-on-market in Australia in 2026?
As of 2026, the average days-on-market for residential property in Australia is about 34 days, which means a typical home still sells, but buyers now have more time than they had during the hotter 2024 and 2025 market.
For most typical residential listings in Australia in 2026, a realistic range is about 25 to 50 days, with well-priced family houses in tight suburbs selling faster and overpriced apartments or prestige homes taking longer.
This is slower than one or two years ago, when strong migration, low rental vacancies and tight listings helped many Australian homes sell closer to 30 days or less.
Are properties selling above or below asking in Australia in 2026?
As of 2026, the estimated average sale-to-asking price ratio for residential property in Australia is around 96% to 97%, meaning the typical home sells slightly below the first asking price.
Based on vendor discounting and auction conditions, we estimate that about 20% to 30% of Australian homes sell above asking, while most sell at or below asking, and our confidence is medium because asking-price data is not reported in one official national database.
The properties most likely to attract bidding wars in Australia in 2026 are scarce family houses in inner Brisbane, Perth, Adelaide, coastal Queensland and tightly held Sydney suburbs such as the Inner West, Northern Beaches and Eastern Suburbs.
By the way, you will find much more detailed data in our property pack covering the real estate market in Australia.
Get fresh and reliable information about the market in Australia
Don't base significant investment decisions on outdated data. Get updated and accurate information.
What kinds of residential properties can I realistically buy in Australia?
What property types dominate in Australia right now?
Residential property in Australia is still dominated by separate houses, with the 2021 Census showing about 70% separate houses, 13% townhouses and 16% apartments, although the listings mix in inner Sydney, Melbourne and Brisbane is much more apartment-heavy.
The single largest property type in Australia is the detached house, especially in outer suburbs, regional cities and family areas away from the inner-city apartment belts.
Detached houses became so common in Australia because Australian cities grew outward for decades, land was cheaper than in dense European or Asian cities, and many households built around car access, gardens and family-sized homes.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Australia right now?
New builds are available in Australia in 2026, but they are not abundant, and we estimate that new or recently completed homes represent roughly 20% to 30% of active residential opportunities in many major-city buyer searches.
As of 2026, the highest concentrations of new-build developments are in Sydney’s Western Sydney growth corridor, Melbourne’s Arden, Fishermans Bend and outer growth suburbs, Brisbane’s Woolloongabba and inner-city apartment zones, the Gold Coast, Perth’s METRONET-linked corridors and Adelaide’s Bowden and Tonsley areas.
Get to know the market before buying a property in Australia
Better information leads to better decisions. Get all the data you need before investing a large amount of money.
Which neighborhoods are improving fastest in Australia in 2026?
Which areas in Australia are gentrifying in 2026?
As of 2026, the clearest gentrification areas in Australia include Marrickville, Dulwich Hill, Campsie and St Marys in Sydney, Footscray, Sunshine, Coburg and Preston in Melbourne, Woolloongabba, Nundah and Chermside in Brisbane, Bayswater, Maylands and Victoria Park in Perth, and Bowden, Thebarton and Port Adelaide in Adelaide.
The visible signs are very specific: old industrial sites are turning into apartments, older shopping strips are adding cafes and medical suites, train-station areas are getting denser, and younger renters are moving into suburbs that were once seen as cheaper alternatives.
Over the past two to three years, many of these gentrifying Australian suburbs have likely seen price growth of around 10% to 30%, with the strongest gains in Perth, Brisbane and Adelaide and softer performance in parts of Sydney and Melbourne.
By the way, we’ve written a blog article detailing what are the current best areas to invest in property in Australia.
Where are infrastructure projects boosting demand in Australia in 2026?
As of 2026, infrastructure is boosting demand most clearly around Western Sydney, Melbourne’s eastern and western rail corridors, inner and south-east Brisbane, the Gold Coast, Ipswich-Springfield, Perth rail corridors and selected Adelaide renewal areas.
The main projects shaping demand are Western Sydney Airport and Bradfield, Sydney links to St Marys, Leppington and Macarthur, Melbourne Suburban Rail Loop East, Brisbane Metro expansions, Gold Coast transport upgrades, Ipswich to Springfield capacity, and Perth METRONET-related rail improvements.
The estimated timeline is mixed, with some projects in the 2 to 4 year pipeline and others in the 5 to 10 year pipeline, so buyers should not assume every infrastructure story will improve a suburb quickly.
In Australia, prices often move first when a credible project is announced, but the bigger and safer uplift usually comes when stations, roads or job hubs are actually funded, visible and close to completion.
Make a profitable investment in Australia
Better information leads to better decisions. Save time and money. Download our data.
What do locals and insiders say the market feels like in Australia?
Do people think homes are overpriced in Australia in 2026?
As of 2026, many locals and market insiders think residential property in Australia is overpriced, especially in Sydney, Melbourne, Brisbane and popular coastal markets where wages have not kept up with home prices.
The evidence people cite most often is simple: the mean Australian dwelling price is about $1.11 million in March 2026, national values are near $942,000 on the NAB/Cotality measure, loan commitments are falling, and rents are still tight.
The counterargument is that Australian prices are supported by high migration, low vacancies, limited new supply, strong bank regulation, and the fact that many existing owners have large equity buffers.
Australia’s price-to-income ratio is high by global standards, and Sydney is usually the toughest market, while Perth and Adelaide still look cheaper relative to local incomes despite their strong recent growth.
What are common buyer mistakes people regret in Australia right now?
The most common buyer regret in Australia in 2026 is buying the wrong legal category as a foreigner, especially assuming an established dwelling is allowed when foreign-buyer rules generally push non-residents toward new homes or approved development.
The second common regret is underestimating holding costs, because stamp duty, foreign-buyer surcharges, land tax, strata levies, vacancy fees and maintenance can turn a good-looking Australian property into a weak investment.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Australia.
It’s because of these mistakes that we have decided to build our pack covering the property buying process in Australia.
Don't buy the wrong property, in the wrong area of Australia
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
How easy is it for foreigners to buy in Australia in 2026?
Do foreigners face extra challenges in Australia right now?
Foreigners face a high difficulty level when buying property in Australia in 2026, because legal access, taxes, financing and property choice are all harder than they are for local buyers.
The main restriction is that foreign persons generally need approval before buying residential land, and from April 2025 to March 2027 they are generally banned from buying established dwellings, with only limited exceptions.
The practical challenges are also very Australian: buyers must separate new dwellings from established dwellings, understand FIRB-style approval timing, budget for foreign surcharges, and check whether a bank accepts overseas income.
We will tell you more in our blog article about foreigner property ownership in Australia.
Do banks lend to foreigners in Australia in 2026?
As of 2026, mortgage financing for foreign buyers in Australia is available, but it is narrower, slower and more conservative than financing for Australian residents.
A realistic foreign-buyer loan-to-value range in Australia is about 60% to 70% for stronger applicants, while interest rates are usually above the best local-borrower offers because banks apply stricter risk checks.
Banks typically ask foreign applicants for verified income, tax documents, bank statements, identity checks, proof of deposit, visa or residency details, and evidence that overseas income is stable and acceptable under the lender’s policy.
You can also read our latest update about mortgage and interest rates in Australia.
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.
How risky is buying in Australia compared to other nearby markets?
Is Australia more volatile than nearby places in 2026?
As of 2026, Australia is moderately volatile compared with New Zealand, Singapore and major developed Asia-Pacific housing markets, with higher short-term city swings than Singapore but stronger banking-system protection than many looser credit markets.
Over the past decade, Australia has had clear price cycles, with Sydney and Melbourne falling during rate-tightening periods, while Perth, Brisbane and Adelaide have sometimes moved in the opposite direction because local supply and migration conditions were different.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Australia.
Is Australia resilient during downturns historically?
Australia has historically been fairly resilient during downturns because lending is tightly regulated, most borrowers are stress-tested, population growth supports demand, and supply shortages reduce the chance of a broad oversupply crash.
In the most recent major national downturn, many Australian markets fell roughly 5% to 10% before recovering, while weaker individual suburbs or premium segments sometimes fell more and took longer to regain peak values.
The property types that usually hold value best in Australia are well-located family houses near jobs, schools and rail in suburbs such as Sydney’s Inner West, Brisbane’s inner north, Perth’s western suburbs, Adelaide’s inner east and Melbourne’s established middle-ring suburbs.
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.
How strong is rental demand behind the scenes in Australia in 2026?
Is long-term rental demand growing in Australia in 2026?
As of 2026, long-term rental demand in Australia is still growing, but rent growth is starting to hit affordability limits because many tenants simply cannot keep paying higher rents every year.
The tenant groups driving long-term rental demand in Australia are new migrants, international students, young professionals, single-person households, families priced out of buying, and workers moving to Queensland and Western Australia.
The strongest long-term rental demand is in inner Brisbane, the Gold Coast, Perth growth corridors, Adelaide’s inner and middle suburbs, Sydney’s rental-heavy inner and western suburbs, and Melbourne areas close to universities, hospitals and train lines.
You might want to check our latest analysis about rental yields in Australia.
Is short-term rental demand growing in Australia in 2026?
Short-term rentals in Australia are facing more regulation in 2026, especially in tourist-heavy and housing-stressed areas where councils and states are trying to protect long-term rental supply.
As of 2026, short-term rental demand in Australia is still growing in the best tourism markets, but the opportunity is much more local than national.
The current estimated average occupancy rate for short-term rentals in stronger Australian tourism markets is often around 55% to 75%, while weaker or oversupplied areas can sit much lower outside peak seasons.
The guests driving short-term rental demand in Australia are domestic holidaymakers, returning international tourists, event visitors, business travellers, families, and remote workers staying longer in coastal or lifestyle areas.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Australia.
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.
What are the realistic short-term and long-term projections for Australia in 2026?
What's the 12-month outlook for demand in Australia in 2026?
As of 2026, the 12-month demand outlook for residential property in Australia is flat to slightly weaker nationally, with buyers still present but more cautious because borrowing power has been squeezed.
The biggest factors for Australian housing demand over the next 12 months are interest rates, unemployment, migration, investor tax rules, construction costs and whether listings rise faster than sales.
Our forecast is that Australian dwelling prices are likely to move between about -3% and +3% nationally over the next 12 months, with Sydney and Melbourne weaker and Perth, Brisbane and Adelaide more resilient.
By the way, we also have an update regarding price forecasts in Australia.
What's the 3–5 year outlook for housing in Australia in 2026?
As of 2026, the 3 to 5 year outlook for housing in Australia is cautiously positive, with prices likely to rise again after short-term softness if population growth stays strong and new supply remains limited.
The major plans shaping Australia over the next 3 to 5 years include Western Sydney Airport and Bradfield, Melbourne Suburban Rail Loop East, Brisbane Metro, Gold Coast transport upgrades, Perth rail capacity work, and large housing-renewal projects in major cities.
The single biggest uncertainty is whether Australia can build enough homes quickly enough, because high construction costs, planning delays and labour shortages could keep supply below demand.
Are demographics or other trends pushing prices up in Australia in 2026?
As of 2026, demographics are still pushing Australian housing prices upward, mainly because population growth is stronger than the speed at which the country is adding suitable homes.
The most important demographic shifts are net overseas migration, growth in Queensland and Western Australia, smaller households, more renters staying renters for longer, and international students returning to university-heavy suburbs.
Non-demographic trends also matter, especially remote work in lifestyle regions, investor demand for rental income, high construction costs, and infrastructure-led demand around new transport corridors.
These pressures are likely to continue for several years in Australia, unless migration falls sharply, construction accelerates strongly, or unemployment rises enough to reduce household formation.
What scenario would cause a downturn in Australia in 2026?
As of 2026, the most likely downturn scenario in Australia would be a mix of high or rising interest rates, weaker employment, lower investor confidence, more listings, and reduced buyer borrowing power.
The early warning signs would be longer days-on-market, vendor discounts above 4%, auction clearance weakness in Sydney and Melbourne, falling loan commitments, rising vacancies and developers delaying new projects.
A realistic national downturn would likely be around 5% to 8%, while weaker segments in Sydney and Melbourne could fall more, although Perth, Brisbane and Adelaide may be cushioned by tighter rentals and stronger population pressure.
Make a profitable investment in Australia
Better information leads to better decisions. Save time and money. Download our data.
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 | Why we trust it | How we used it |
|---|---|---|
| Australian Bureau of Statistics, Total Value of Dwellings | ABS is Australia’s official statistics agency, so it is the strongest source for national dwelling-stock values. | We used it for the size, value and mean price of Australia’s dwelling stock. We used it to separate national fundamentals from portal listing noise. |
| Australian Bureau of Statistics, Building Approvals | ABS is the official source for approved new dwellings in Australia. | We used it to judge whether new builds are genuinely plentiful. We compared houses versus apartments and townhouses in the approval pipeline. |
| Australian Bureau of Statistics, Population | ABS is the official source for population growth, interstate movement and migration. | We used it to measure housing demand pressure from population growth. We cross-checked whether migration is still strong enough to support rents and prices. |
| Australian Bureau of Statistics, Lending Indicators | ABS tracks new mortgage commitments across owner-occupiers, investors and first-home buyers. | We used it to see whether buyers are still active. We treated falling loan commitments as an early warning sign for cooling demand. |
| Reserve Bank of Australia, Financial Stability Review | The RBA is Australia’s central bank and monitors household and banking-system risk. | We used it to assess downturn resilience and mortgage stress. We compared price risk with household balance-sheet risk. |
| Foreign Investment Australia, Residential Land | This is the official foreign-investment guidance for residential land in Australia. | We used it to explain what foreigners can and cannot buy. We used it because Australia’s foreign-buyer rules are unusually restrictive in 2026. |
| Australian Taxation Office, foreign established-dwelling ban | The ATO is responsible for enforcement of residential foreign-investment rules. | We used it to avoid outdated foreign-buyer summaries. We used it to explain the established-dwelling ban and related compliance risk. |
| Infrastructure Australia, 2026 Infrastructure Priority List | Infrastructure Australia is the national infrastructure adviser. | We used it to identify transport projects that can shift housing demand. We focused on projects that affect residential access, not generic construction spending. |
| National Housing Supply and Affordability Council | NHSAC is the federal expert body on housing supply and affordability. | We used it to assess structural undersupply and the 3 to 5 year outlook. We used it to keep projections grounded in housing-system evidence. |
| NAB/Cotality Property Market Update | NAB publishes bank research using Cotality housing-market data. | We used it for the May and June 2026 market read. We used it to understand flat national values, slowing growth and city divergence. |
| Domain Rental Report | Domain is a major listings platform with recurring rental-market reporting. | We used it to test rental pressure against SQM vacancy data. We used it because rental demand is better measured from more than one dataset. |
| AHURI short-term rental report | AHURI is Australia’s main housing-policy research institute. | We used it to assess short-term rental pressure and regulation risk. We used it because Airbnb-style demand is highly local and can distort tourist markets. |