Shallow Downturn as Rents and Tight Supply Put a Floor Under Housing Prices (Source: Australian Property Update)
The article argues that Australia’s current housing correction is likely to be shallow and relatively short-lived, describing it more as an “orderly repricing” than a major property crash. Buyer competition has eased, but homes are still selling relatively quickly and vendor discounts remain limited, suggesting that buyers are becoming more selective rather than disappearing from the market. The key support for prices is the ongoing housing shortage and rising rents, with rental growth around 5–7% annually across Sydney, Melbourne and Brisbane. The market is becoming increasingly fragmented: Sydney and Melbourne are softer, while Brisbane remains stronger. Investors are therefore encouraged to focus on location, property quality and rental fundamentals rather than assuming the whole Australian market will move in the same direction.Latest Property Price Forecasts: Australian Property Market Outlook 2026–2027 (Source: Property Update)
The article presents a two-speed Australian property market, with Sydney and Melbourne expected to remain under pressure while Brisbane, Adelaide and Perth continue to perform more strongly. Domain forecasts house prices to fall 3–7% in Sydney and 4–8% in Melbourne by June 2027, while Brisbane, Adelaide and Perth are forecast to rise by 3–7%, 4–8% and 5–9%, respectively. Units are expected to outperform houses because of affordability pressures. The article also highlights the impact of the 2026 Budget’s upcoming property-tax changes, while noting that properties purchased before the relevant grandfathering date remain protected. Overall, the author expects the rest of 2026 and much of 2027 to remain subdued, with a potential recovery beginning around mid-2027 as interest rates eventually fall. The longer-term argument remains positive because of population growth, chronic housing undersupply and rising national wealth.Property Downturn Hides Dozens of Buyer Hotspots Around Australia (Source: Australian Property Update)
Despite the national housing downturn, the article shows that buyer demand remains surprisingly strong in many individual markets. In July 2026, homes were selling faster than a year earlier in 40 of 86 Australian regions, with regional areas particularly resilient because of their relative affordability. Tasmania recorded some of the biggest improvements, including Launceston and North East Tasmania, where average selling time fell from 56 days to 32 days. Parts of regional NSW also saw significantly faster sales. Importantly, the trend isn’t limited to regional Australia: Perth Inner, the ACT, Perth North East, Adelaide Central and Hills and Inner Melbourne also recorded faster selling times. The broader message is that Australia does not have one property market — affordability, limited supply and local demand can keep particular suburbs competitive even while national prices are falling.Housing Costs Have Outpaced Inflation, and Governments Helped Make It Happen (Source: Property Update)
This article looks beyond house prices and argues that Australia’s overall cost of housing has increased faster than general inflation. Since 2000, housing costs have risen by roughly 4% per year compared with 3% annual CPI inflation. Electricity and gas prices have more than quadrupled, while state property taxes have increased by around 250%. The author argues that governments have contributed to the affordability problem by simultaneously increasing housing demand through population policies and incentives while restricting supply through planning rules, taxes, approval delays and construction costs. These expenses are initially absorbed by homeowners, developers and investors but can eventually flow through to higher rents for tenants. The central argument is that Australia’s affordability crisis isn’t simply about expensive houses — it is the result of rising costs of providing, owning and renting housing combined with insufficient supply.Housing Downturn Milder in Rival Price Index as Rents Keep Climbing (Source: Australian Property Update)
The article compares two major housing datasets and shows that the depth of Australia’s downturn depends partly on which index is used. REA Group data shows national home prices fell 0.2% in August, leaving prices 2.7% below the March peak but still 1.8% higher than a year earlier. Cotality’s data is more bearish, showing a 0.9% August decline and a 3.6% fall from the March peak. Regional markets are holding up much better than capital cities, while units are outperforming houses because buyers are increasingly looking for more affordable options. At the same time, rents rose 5.7% over the year, vacancy rates remained tight at 1.9%, and gross rental yields increased to 3.79%, their highest level since 2019. For investors, the key takeaway is that while capital growth has weakened, rental income is becoming increasingly important to total returns.The Myth of Never Selling Investment Properties (Source: Property Update)
The article challenges the common belief that successful property investors should “never sell.” It argues that buy-and-hold remains a strong long-term strategy, but investors shouldn’t keep an underperforming property simply because they are afraid of Capital Gains Tax or transaction costs. Instead, investors should regularly review whether each property still fits their current investment strategy. A property that was appropriate when purchased may later become a poor-quality asset compared with better opportunities available elsewhere. The author suggests asking a simple question: “Would I buy this property today?” If the answer is no, selling and recycling the capital into a higher-quality investment may make more sense. However, the article stresses that this doesn’t mean constantly buying and selling — the goal is to “seldom sell,” not “never sell,” and to avoid selling simply because of temporary market weakness or fear.PropTrack Home Price Index – August 2026 (Source: realestate.com.au)
The latest PropTrack data confirms that Australian home prices experienced their fifth consecutive monthly decline in August, falling 0.2%. National prices are now 2.7% below their March peak but remain 1.8% higher than a year ago and 27.5% higher than five years ago. Capital cities are taking most of the hit, with combined capital prices down 3.6% from their peak, while regional prices are only 0.5% below peak and remain 6.6% higher year-on-year. Units are also outperforming houses, with national unit prices up 3% over the year compared with 1.5% for houses. Darwin was the only capital to record monthly growth in August and remains the strongest capital performer over the past year. The report attributes the slowdown largely to higher interest rates reducing borrowing capacity and demand, while affordability continues to push buyers toward regional areas and cheaper property types.CoreLogic Auction Results (Week ending 30August 2026)
(Total Auction / Clearance Rate)– Sydney: 509/ 51.5%
– Melbourne: 644/ 53.7%
– Brisbane: 146/27.4%
– Perth: 9/66.7%
– Canberra: 50/40%
– Adelaide: 102/ 46.1%
– Tasmania: 2/ 100
Combined Capitals: 1462/49.5%
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