Welcome to the first 2026 edition of Opteon’s Property Pulse Check, our quarterly take on Australia’s evolving property markets. As we continue tracking commercial and residential conditions nationwide, this edition captures fresh insights from our valuation experts, revealing where markets are holding steady, gaining pace, or beginning to cool. It’s a succinct snapshot of buyer and seller sentiment across the country.
Tracking the rhythm of Australia's Property Markets
Our quarterly Pulse Check offers a quick read on the health of Australia’s property markets, using a familiar metaphor: the heartbeat. Just like a pulse can signal calm, exertion, or fatigue, market conditions vary by region and cycle. We’ve asked our experts to assess the rhythm of their local markets this quarter: whether it’s resting, elevated, or slowing. Their insights provide a timely snapshot of buyer and seller sentiment, helping you stay in step with the changing pace of the property landscape.
Resting Pulse – The market is steady and well-balanced, ticking along at a healthy pace.
Elevated Pulse – Activity is ramping up, with strong demand pushing the market into growth mode.
Slow Pulse – Momentum is easing as the market takes a breather after a busy run.
Here’s what our experts are seeing on the ground this quarter:
"The retail sector continues to demonstrate strong performance across Australia, underpinned by resilient consumer spending, robust population growth, and a persistent undersupply of retail floorspace. Elevated construction costs have delayed new developments, further tightening supply. Retail remains a standout asset class, attracting heightened investor interest due to low vacancy rates, solid moving annual turnover (MAT), consistent rental growth, and slightly compressed - yields across shopping centres and large format retail (LFR) assets. Transaction volumes for 2025 were close to record levels albeit with fluctuating transaction levels across states."
"The market seems to have stabilised during mid to late 2025, following a period of decline/price adjustment. Buyers remain selective, with the fewer participants targeting offices with strong lease covenants and longer term WALEs, along with a greater focus on modern buildings with strong ESG credentials.
Values have remained somewhat stagnant, highlighting broader market uncertainty and persistently elevated interest rates. Sales volumes remain low in comparison with the stronger office market periods which prevailed prior to the pandemic. Supply is tightening, with fewer new buildings, particularly noting continuing high construction costs."
"Australia’s industrial property market remains one of the strongest commercial real estate sectors, underpinned by low vacancy, constrained land supply and resilient occupier demand. National vacancy has risen slightly as new developments have completed, but it remains well below long-term levels, particularly in Sydney, Brisbane, Perth and Adelaide, indicating ongoing undersupply.
Industrial assets continue to attract strong domestic and offshore capital, supported by income security, rental growth prospects and long-term fundamentals tied to e-commerce, logistics and supply-chain resilience."
"National dwelling values climbed 2.9% in FY26 Q2 (December quarter), with momentum propelled by scarce listings and earlier rate cuts that kept buyer demand firm.
Standout markets included Perth, Brisbane and Adelaide (again), where strong demand and ultra‑tight stock continued to amplify quarterly gains, while Sydney and Melbourne delivered softer advances as higher price points (Sydney) met serviceability limits, and higher supply and higher taxes (Melbourne) continue to subdue price growth.
Lower‑priced segments led activity across several capitals and regional areas, reflecting buyers pivoting toward affordability and constrained supply at the entry level.
December’s +0.7% month‑on‑month print did signal some cooling into year‑end, mainly due to affordability ceilings and the increased probability of multiple interest rate rises in early 2026 and a 'higher for longer' rate path."
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George Garagounis 0427 786 918
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New South Wales
Values remain just 0.1% below Sydney’s recent peak, highlighting a market that is holding its ground rather than entering a strong upswing. Rental conditions continue to lend support, though Sydney’s 3.0% gross yield reflects the ongoing strain on investor returns. Looking ahead, any further gains are expected to be gradual, with restrictive borrowing capacity likely to temper demand while low supply keeps a firm floor under prices.
Australian Capital Territory ACT dwelling values rose 2.2% over the October–December quarter, lifting annual growth to 4.2%, signaling a market that is improving steadily but without the momentum seen in several mid sized capitals. Conditions remain supported by tight supply and consistent buyer demand, though affordability pressures and higher borrowing costs continue to moderate value growth. The market is showing signs of renewed traction, with house values driving the quarterly rise and providing stability across the broader ACT segment.
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Regional Director 0407 332 887 |
South Australia
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State Director 0457 456 355 |
Queensland Brisbane continues to lead performance in South East Queensland, recording double‑digit capital growth across both houses and units, driven largely by the tight supply of properties available for sale. Across the wider SEQ region, markets remain resilient, with price growth underpinned by strong lifestyle appeal and continued interstate migration.
Time on market has held steady over the past 12 months at approximately 20–25 days, reflecting consistent buyer demand. Auction conditions remain robust, with second‑quarter FY25/26 clearance rates sitting around 70–77% across greater Brisbane, while rental vacancy rates below 1% in metropolitan areas point to strong yields and ongoing upward pressure on rents. |
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State Director 0417 449 344 |
Western Australia Perth's residential dwelling values rose 1.9% in December 2025, 7.6% in the December quarter and 15.9% in the past 12 months. With supply at all time lows and strong demand, Perth is experiencing short sale periods of 9 days and low vendor discounting. Perth dwelling prices are at a record high and rental rates have increased 5.9% in the past 12 months. Regional WA dwelling value is 16.1% higher in the past 12 months with listed stock levels falling and rental values up 10.1% over the last 12 months. Regional locations such as the Pilbara (Karratha) are performing strongly by virtue of short supply and positive sentiment around major infrastructure projects.
Northern Territory Darwin's residential dwelling values rose 1.6% in December, 5.4% over the quarter and 18.9% in the past 12 months. Supply of listed stock has reduced as Darwin has seen a significant uplift in buyer activity. Darwin's increase in dwelling prices can be attributed to it's relative affordability, increasing rents (up 8.2% in 12 months), strong rental yield (6.2% higher in 12 months) and positive sentiment around government infrastructure projects, mining and defence related spending.
Regional NT dwelling values are 3.5% higher in the past 12 months with listed stock levels steady and rental value up 3.5% over the last 12 months. Both Darwin and Regional NT median days on market remain more protracted than other states / territories showing 35 days and 101 days respectively. |
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State Director 0433 155 774 |
Victoria From October to December 2025, Victoria’s residential property market showed broadening signs of recovery, with both price growth and buyer activity strengthening compared with earlier in the year. In October, the median house price in Melbourne was around $936,000, up 1.7% over the previous three months and 2.3% year-on-year, while median unit prices sat near $635,000, posting roughly 1.3% quarterly growth. In regional Victoria, houses and units also climbed, with regional house prices around $620,000 and units around $429,000, each up over the quarter and year. |
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Regional Director 0405 715 580 |
Tasmania Hobart dwelling values increased 0.9% over the December quarter, lifting annual growth to 6.8% and pointing to a market that is regaining traction, albeit at a slower pace than many mainland capitals. Conditions remain supported by restricted stock levels and steady buyer demand, though borrowing capacity limits continue to restrain stronger price momentum.
Values are still 5.4% below the March 2022 peak, reinforcing that the recovery phase is measured rather than robust. Buyer activity continues to gravitate toward more affordable segments, where limited supply is sustaining competition and relatively swift selling times. Rental conditions remain a key support, with solid rent growth and comparatively attractive yields helping maintain investor interest.
Looking ahead, further gains are likely to be gradual, as affordability pressures and expectations that interest rates will remain restrictive for some time temper demand, even as tight supply provides an underlying floor to values. |
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