Spring 2026 Property Market Update

A property update from Michael Salvartsis from ‘Real Property Buyers’ Buyers Agency

Australia's spring property season has started slowly, marking a subdued start to what’s normally the busiest time of the year for real estate. This subdued start to spring comes after a series of three Reserve Bank of Australia (RBA) Official Interest Rate Rises to 4.35% (with another expected before year end), the Federal Government's Mid - Year Budget changes that targeted property investors, continued uncertainty in the Middle East and property buyers exercising caution. 

Sydney like most Capital Cities is still seeing the more expensive, premium end of the market lead the downturn and is experiencing weaker conditions and downward price corrections up to Circa 15%, as compared to the lower level Sub $2Mil price point which is experiencing downward price corrections up to 10%.

We are also seeing something emerge that would have been difficult to comprehend during the COVID boom. There is a significant list of properties purchased in the peak of 2021 and 2022 now reselling for less than their original purchase price. When you also account for the substantial inflation experienced over the same period, the deterioration in real value is significant.

With rents rising and home values falling, gross rental yields have continued to trend higher. At 3.8%, the national gross rental yield is at its highest level since September 2019 and Sydney’s gross rental yield is 3.3%. With changes to the recent property taxation policies, investors are most likely to place a greater emphasis on higher - yielding established residential opportunities and commercial investment properties than they did before the Federal Government Budget changes.

Spring normally brings a seasonal lift in the flow of homes coming onto the market, but the increase in new listings is unlikely to be as strong as usual this year. Overall, the housing market is likely to continue to remain under pressure over the ensuing months and conditions might improve if we start to see interest rate cuts and some renewed confidence… realistically we anticipate this may be in the second half of 2027.

Overall, the property market currently provides a favourable environment for buyers, providing choices and a competitive edge with stronger negotiation power especially for astute opportunistic buyers, upsizers and the like.

What we are Observing On The Ground 

• Sydney’s price correction is no longer something being debated or forecast, it's now well established

• Some Vendors are reluctant to submit their properties to the market for sale.  Vendors are adjusting their price expectations to achieve a sale

• Properties that are materially overpriced (and stand out) are being ignored by buyers

• Overpricing of properties is resulting in multiple sales campaign’s and protracted selling periods

• There are a larger number of properties being postponed or withdrawn from auction

• There is an increased number of Private Treaty campaigns (in the more traditional auction markets)

• Properties are transacting at lower price outcomes, creating new comparable evidence

• Correctly priced and positioned quality properties are still attracting significant competition and continue to perform well.  While other properties are more sensitive to price, presentation and strategy

• The most active transactional segment of the market is the First Home Buyer Segment - Sub $1Mil Price Point

• On average there are currently only Two Buyers per property (particularly for properties with guides greater than $2 Mil +)

• Substantial Downward Price Corrections for Higher End Value Properties (Up to Circa 15%)

• Increased Number of Off Market Opportunities (which are readily accessed by Buyers Agents)

• Fewer "New Property / Newly Built” Investor Purchaser Options

• Investors Prefer to chase higher yield established properties rather than brand new stock which comes with a premium

• Significant increase in Commercial Property Investment Enquiry & Activity

Some recent Sydney Case Studies which reflect price declines are as follows:

Property 1

• Redfern

• A Grand Two Storey 4 Bedroom Victorian Terrace

• Located in a Premier Street with Three Street Frontages

• Sold $4,650,000 - Aug '21

• Resold $4,255,000 - May '26

• 8.5% Drop

• 99 Days on Market

Property 2

• Roseville

• A Single Storey, 4 Bedroom Federation Home

• Located in Roseville's Prestigious East-Side Enclaves

• Sold $6,408,000 - Jun '21

• Resold $5,650,000 - Jun '26

• 11.8% Drop

• 32 Days on Market