2026 Property Outlook: How the savvy buyer wins in an uneven market
The Australian property market in 2025 was characterized by one word: acceleration. Driven by interest rate cuts and a chronic shortage of stock, we saw national growth hit 9%, with standouts like Perth and Darwin reaching staggering 15% - 17% increases.
However, as we move into 2026, interest rate rises are ahead, the market growth will slow and become uneven. To succeed this year, buyers need to be well informed to help make the right borrowing and purchasing decisions.
THE LADDER LOWDOWN:
Interest rate rises - As early as late Jan 2026
Uneven growth - rate rises may subdue growth in the year. But some regions may bounce back like Melbourne
Savvy well informed buyers win - if you know your market, and what’s possible to borrow, you’ll get ahead in 2026
1.The Return of Interest Rate Pressures
The biggest shift coming in 2026 is the cost of debt. While 2025 benefited from cuts, we are forecasting a reversal. Expect the first interest rate hike as early as the end of January, with subsequent rises likely in April or May. This will inevitably impact borrowing power and market sentiment as we move into the second half of the year..
As rates rise, it’s always good to check your current rates.
2. Uneven market
We expect 2026 to be "uneven." Higher rates will likely slow price growth in markets that peaked early, but this creates a window of opportunity elsewhere.
For example, Melbourne—which underperformed relative to the national average in 2025—is showing signs of a strong recovery. Savvy investors are already looking away from the "hot" headlines of last year and toward the value plays of this year.
And Darwin which experienced rapid gorwht
First home buyers are pushing up prices in the market under $1m, but we see the oppositite at the top end. WIth the premium market in Sydney experiencing some flattening of prices. December 2025 also saw Sydney show a small decline in prices.
3. Savvy buyers win in 2026
Whether you are looking to purchase your first home or add to an investment portfolio, the right advice is your greatest asset. Knowing exactly what you can afford to borrow—and how that changes as rates rise—is the difference between a stressful purchase and a smart investment.
What you need to do
Depending on your stage in the market, there’s opportunity in 2026.
First home buyers: Buying can be daunting, so reach out for a chat if you’d like to see how to get into the market. Read out blog here too.
Refinancers: See what your property is really worth by requesting a free property report.
Purchasers: With values shifting, if you’d like data on suburb performance or houses you want to buy, ask for free suburb or property report
Investors: Take a step back to see where the market is heading, as past performance may not be the best predictor of future. We’ll help you understand how much you can borrow to build your portfolio.
Next steps
The first easy step is simple: Have a conversation and know your borrowing capacity. Everything else flows from that number. We will help you calculate your full potential in a changing market.
Call Will on 0414 877 724 or will@ladderfs.com.au and he’s happy to help.