With 2026 on the horizon, many Australians are wondering what the property market will do next – and whether now is the right time to plan their next move.
According to Domain’s latest Forecast Report for 2026, property prices are expected to keep rising across all major cities, continuing the strong momentum we’ve seen through 2025. And while forecasts can shift (and often do), a combination of economic settings, government policy and ongoing supply challenges is all playing a role in shaping what’s ahead.
Below, we break down the key insights – and what they mean if you’re thinking about buying, upgrading or investing in 2026.
What the Forecasts Are Saying
Domain is projecting another year of growth:
- +9% house price growth by late 2025
- +6% further growth in 2026
- Units also trending higher, with solid demand across capital cities
While no forecast is perfect, the drivers behind this outlook are hard to ignore. Several factors continue to add pressure to prices and increase competition across all buyer segments.
What’s Driving the Market?
1. Interest Rate Cuts Boosted Demand
Three rate cuts in 2025 have increased borrowing power and brought more buyers back into the market. Even though no additional cuts are currently expected, the previous reductions have already created momentum that’s flowing into 2026.
2. Government Incentives Are Reshaping Buyer Behaviour
Policy changes have been one of the biggest surprises of the past year:
- The expanded 5% Deposit Scheme is now uncapped and no longer means-tested (beyond purchase price).
- The Help-to-Buy Scheme, offering 2% deposits, is due to commence.
These initiatives don’t just help first-home buyers – they create a ripple effect. When a first-home buyer secures a property, the seller often becomes an upgrader. That seller upgrades again. And so on. This upgrading chain pushes demand through every price point, not just entry-level housing.
3. Low Supply + Tight Rentals = More Competition
Listings remain low, and rental vacancy rates are still extremely tight. This creates a challenging environment for both buyers and upgraders – especially those who need to transition through the rental market between selling and purchasing.
4. Economic and Policy Levers Matter More Than Ever
While unemployment and inflation often dominate headlines, recent market movements have shown us that interest rate decisions and government policy tend to have the strongest real-time impact on prices.
What to Expect in 2026
Based on the current outlook:
- Prices are likely to rise through early 2026
- Growth may ease slightly in the second half of the year
- Stable interest rates could act as a soft brake
- Government incentives may continue to fuel strong buyer demand
In short: Expect upward pressure on prices, ongoing competition, and a market where being prepared matters more than ever.
Planning Your Next Move? Strategy Will Be Key.
Whether you’re a first-home buyer, an upgrader or an investor, having clarity around your borrowing capacity, purchase timeframe and lending strategy is essential – especially in a rising market.
If you’re thinking about buying, upgrading or investing in 2026, now is the perfect time to start preparing.
Ready to Plan Your Next Move?
Speak with the team at Indi Finance to explore your lending options and build a strategy that puts you in the strongest position for the year ahead.
👉 How Much Can I Borrow?
🔗 Further reading: Domain’s latest Forecast Report for 2026
Disclaimer:
The information in this article is general in nature and does not take into account your personal financial circumstances, goals or needs. It reflects an indicative view of the property market based on Domain’s latest Forecast Report for 2026 and other publicly available insights. Forecasts can change as market conditions evolve. Before making any decisions, please seek personalised advice tailored to your situation.