Interest Rates to Hold Steady
Most economists expect interest rates to remain stable through 2026 as inflation slows. This creates predictable borrowing conditions and boosts buyer confidence.
Source: Reserve Bank of Australia
https://www.rba.gov.au/
Housing Supply Improving
Construction activity is forecast to rise after several slow years. More medium density projects will reach completion, helping ease demand pressures.
Source: Domain Outlook
https://www.domain.com.au/research/
Regional and Outer Suburbs Remain Strong
Lifestyle regions and fringe suburbs will continue to outperform due to affordability and ongoing migration.
Source: CoreLogic Market Update
https://www.corelogic.com.au/reports
Growing Demand for Sustainable Homes
Energy efficient homes are expected to outperform as buyers and renters prioritise lower running costs and greener living.
Source: ABS Environment and Energy Data
https://www.abs.gov.au/statistics
Predicted Market Trends (2026)
| Trend | Outcome |
| Interest Rates | Stable through 2026 |
| Supply | Gradual increase, especially townhouses and units |
| Regional Growth | Solid demand continues |
| Sustainability | Higher premiums for energy efficient homes |
| Rentals | Tight vacancy and strong yields |
What This Means for Buyers
| Insight | Why It Matters |
| More stock | Less pressure when making offers |
| Stable rates | Easier long term planning |
| Better unit and townhouse opportunities | Improved affordability for first home buyers |
| Ability to choose quality | More time to focus on layout, community, and energy performance |
Buyer takeaway: 2026 offers more breathing room. It is a good year to re enter the market if you stepped back in previous years.
How Investors Can Position Themselves in 2026
| Strategy | Benefit |
| Look to regional lifestyle hubs | Stronger yields and lower buy in prices |
| Consider townhouses and duplexes | High appeal and lower maintenance |
| Target transport growth corridors | Infrastructure lifts long term value |
| Invest in energy efficient upgrades | Higher rental demand and tenant retention |
| Explore affordable units | Consistent demand from migrants and young professionals |
Investor takeaway: Growth follows affordability, infrastructure, and liveability.
Where to Invest in 2026
- Growth corridors with new transport and schools
- Regional hubs like Newcastle, Geelong, Sunshine Coast
- Suburban townhouses and duplexes
- Units in well connected outer metro suburbs
Sources
- Domain Property Market Outlook
https://www.domain.com.au/research/ - CoreLogic Housing Market Update
https://www.corelogic.com.au/reports - ABS Housing and Population Data
https://www.abs.gov.au/statistics - RBA Official Cash Rate and Forecasts
https://www.rba.gov.au/