Property Market Update - July 2026

Sydney Enters a Buyer-Friendly Market 

Australia's housing market softened further through June as affordability pressures, higher interest rates and weaker consumer confidence continued to weigh on buyer demand. National dwelling values declined 0.4% during June, marking the largest monthly fall since December 2022, while values nationally have now eased 0.7% over the June quarter. Despite the recent slowdown, national dwelling values remain 7.3% higher than a year ago.

Sydney was the weakest-performing capital city during June, with dwelling values declining 1.2% for the month and 3.2% across the June quarter. While values remain 0.3% above where they were twelve months ago, Sydney prices are displaying a clear shift from the rapid growth experienced over recent years.
The slowdown reflects stretched affordability, higher borrowing costs and more properties remaining on the market for longer, creating greater choice and improved negotiating conditions for purchasers. 

The Growth Story is Now Highly Localised

Although Sydney has experienced one of the largest corrections among Australia's capital cities, performance continues to vary considerably across individual regions. Premium suburbs remain under the greatest pressure, while many outer metropolitan areas continue to record solid annual price growth despite the broader market slowdown.

Penrith continues to lead Greater Sydney with 9.8% annual growth, closely followed by Richmond-Windsor and Campbelltown (both 9.2%), St Marys (9.0%) and Wyong (9.0%). Other strong performers include Camden, Bringelly-Green Valley, Mount Druitt and the Blue Mountains, highlighting that affordability remains one of the strongest drivers of buyer demand.

This increasingly segmented market demonstrates that Sydney is no longer moving as one market. Buyers continue to favour more affordable locations where borrowing capacity stretches further, while higher-value suburbs have experienced the greatest adjustment following several years of exceptional price appreciation. For buyers, the current environment offers greater choice and more negotiating power than has been available for several years.

More Choice for Buyers as Listings Rise Steadily

The supply of new properties coming to market has continued to improve. Nationally, 32,947 new listings were recorded over the four weeks to 12 July, sitting 2.1% above the same time last year. The increase in new listings has contributed to a gradual rise in total advertised stock, providing buyers with greater choice than earlier in the year.

With more homes available and buyer activity moderating, market conditions are becoming more balanced. Vendors are facing increased competition, while purchasers have more opportunity to negotiate and consider a wider range of properties before making purchasing decisions.

Rental Market Conditions

Despite softer conditions in the sales market, rental demand remains exceptionally strong. National rents increased 5.9% over the past financial year, adding around $40 per week to the median rent. Sydney remains Australia's most expensive rental market, with median rents of $883 per week for houses and $783 per week for units.

National rental vacancy rates remain extremely low at 1.6%, well below the long-term average of 2.5%, supporting continued rental growth. While the pace of housing value growth has slowed considerably, limited housing supply, strong population growth and ongoing rental shortages continue to underpin Australia's residential property market.
As rents outpace home value growth, gross rental yields are gradually but steadily increasing.

Overall market conditions have become more balanced as property listings increase and buyers gain more choice. While growth has moderated compared with previous years, demand remains supported by population growth, limited new housing supply and tight rental conditions.

This content is general in nature and does not constitute credit, financial or taxation advice. It does not take into account your objectives, financial situation or needs. You should consider whether it is appropriate for your circumstances and seek independent professional advice before making any financial decisions.  

This information is general in nature and does not constitute credit advice. It does not take into account your objectives, financial situation or needs. You should consider your own circumstances before acting on this information

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