Property Update - August 2026

Monthly highlights
 

• Home values in Sydney and Melbourne are already over 5% down from their peaks, while the modest downturn in Brisbane and Adelaide is just two months old. Growth in Melbourne’s home values has been limited in recent years, meaning any sizeable pull back in values will would see a return to levels last seen prior to the pandemic. In contrast, Perth’s rapid recent growth would mean a 20% decline would return the market to the same levels as April 2025, while a similar fall in Brisbane and Adelaide would move back to levels of mid-2024.

• The rolling quarterly trend for national dwelling values was down 1.9% over the three months to July.

• Dwelling value growth has continued to lose momentum, with each of the majors now in a downturn over a rolling four-week period.

• National home sales fell by 0.8% over the year to July 2026, with the divergence between regional and capital-city markets continuing to widen. Monthly sales remain below the five-year average, after trending lower from a peak in October last year. The market remains split. Across the combined regional areas, sales volumes rose by 4.2% year on year, while volumes across the combined capitals fell by 3.5%. Most of the weakness was concentrated in Perth (-14.8%), Brisbane (-7.2%) and Sydney (-4.2%), while growth was largely driven by regional Victoria, regional New South Wales and the Northern Territory.

• The rental market remains tight, with annual growth steady at 5.9% over the year to July 2026, unchanged from last month. This is up from a mid-2025 low of 3.4%, with the rise evident across both capital cities and regional markets. The combined capitals and combined regionals are both at 5.9%, so rental growth is broadly even across the board. At 5.9%, rent increases still outpace wage growth (3.3%), meaning most renters are spending a larger proportion of their income on rent than a year ago.

• Unit approvals rose to 7,460 in June 2026, although activity remains well below the February peak of 9,514. Persistently high construction costs continue to weigh on apartment development, making projects more difficult to finance and bring to market. Meanwhile, house approvals have risen to 10,868, a 16.0% annual increase with approvals 10.7% above the decade average. Demand for smaller homes, faster build cycles and greater participation from owner-builders has provided support to the detached housing sector. Dwelling commencements also moved higher over the quarter, increasing by 3.6%, with apartment commencements leading the gains through a 9.8% rise.

• The Reserve Bank of Australia kept the cash rate on hold at 4.35% in August, it’s the second consecutive meeting without a change. This follows three straight rate hikes between February and May. The decision was in line with consensus expectations after a softer-than-anticipated June inflation reading.

Download the report here (PDF 3MB)