Experts outline their price and rent forecasts for 2026
As we move into 2026, three major research groups, Domain, SQM Research and Ray White Group, have released updated forecasts for the year ahead. While their methodologies differ, all three expect prices and rents to continue rising through 2026. At the same time, they emphasise that these are predictions, not certainties, with interest rates, construction activity and economic conditions likely to shape how the market ultimately unfolds.
Domain expects every capital city’s median house price to be at a new record high by the end of 2026. Across the combined capitals, house prices are forecast to rise 6 per cent, led by gains of 7 per cent in Sydney and 6 per cent in Melbourne. Unit prices are also expected to rise 5 per cent in the combined capitals, with particularly strong growth forecast in Brisbane and Perth. Domain’s Chief of Research and Economics Nicola Powell said demand remained elevated and that the unit market was expected to outperform in several cities, partly due to buyers chasing relative affordability. She noted that more housing supply was starting to come through, which could help conditions ease toward the latter part of 2026.
SQM Research’s base-case forecasts point to even stronger growth in some cities. It expects house prices to rise 12 to 16 per cent in Perth and Darwin and 10 to 15 per cent in Brisbane and Adelaide, while Sydney and Canberra are forecast to record more moderate gains. SQM also expects rents to rise in every capital city over 2026, with the steepest rises predicted in Hobart, Darwin and Perth.
Interest rates will be the wildcard in 2026
Ray White Group Chief Economist Nerida Conisbee said the national market is heading into 2026 with far more momentum than most expected a year earlier, but also with an unusual degree of uncertainty. She said the affordable tier of properties was likely to continue outperforming, with limited supply pipelines supporting prices. However, she emphasised that interest-rate timing remained the biggest wildcard, with a delayed rate cut likely to produce steadier growth and an earlier-than-expected cut likely to re-accelerate prices.
While the exact outcome for 2026 will depend on how these factors play out, the consensus from Domain, SQM Research and Ray White Group is that prices and rents are more likely to rise than fall this year, although at varying speeds across different cities and segments.
Assuming that’s true, buyers who move sooner rather than later may be able to get ahead of further price rises. Reach out if you’d like to secure a home loan pre-approval.
Licensing statement: Rayne Finance ABN [70 605 100 838] is authorised under LMG Broker Services Pty Ltd Australian Credit Licence 517192. Disclaimer: (1) As with any financial scenario there are risks involved. This information provides an overview or summary only and it should not be considered a comprehensive analysis. You should, before acting in reliance upon this information, seek independent professional lending or taxation advice as appropriate and specific to your objectives, financial circumstances or needs. This publication is provided on the terms and understanding that: (2) LMG Broker Services Pty Ltd, Rayne Finance (Seed Lending Pty Ltd) and the authors, consultants and editors are not responsible for the results of any actions taken on the basis of information in this publication, nor for any error in or omission from this publication. (3) LMG Broker Services Pty Ltd, Rayne Finance (Seed Lending Pty Ltd) and the authors, consultants and editors, expressly disclaim all and any liability and responsibility to the maximum extent permitted by the law to any person, whether a purchaser or reader of this publication or not, in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication.
Explore other FAQs and Facts
What happens to my mortgage in a divorce?
Dividing property after a separation can be overwhelming, especially when a mortgage is involved. Whether you plan to sell or refinance, it’s vital to understand your legal and financial responsibilities. This guide answers common questions to help you navigate your options with more clarity and avoid costly missteps during divorce.
How to buy your first home with a sibling or friend
Buying your first home with a sibling or friend can make it easier to get into the market. By combining deposits and sharing costs, you may be able to buy sooner or buy better. With support like the First Home Guarantee, co-ownership can be a practical path to ownership.
Grants, Schemes & Deposits: A 2026 Guide for First Home Buyers
Buying your first home is about more than just saving a deposit. This guide breaks down what a deposit really means, how much you might need, and the key government grants and schemes available in 2026 to help first home buyers get into the market sooner.
Savings: The Foundation of Your First Home Deposit
Saving for your first home is not just about how much money you have. Lenders also look at how your deposit has been built over time. Understanding the difference between savings and genuine savings early can make the entire home buying process clearer and far less stressful.
Buy now pay later (BNPL): Helpful for Christmas but will it hurt your home loan chances?
Did you use BNPL to get through Christmas? You’re not alone. But with new credit rules now in place, even small pay-later habits could affect your chances of getting a home loan. Here’s what’s changed, what lenders are looking at, and how to make sure your BNPL use doesn’t hold you back.
Regional Victoria: Why buying now stacks up
Regional Victoria’s property market has hit a sweet spot in 2025. Towns like Ballarat, Bendigo and the Surf Coast are seeing steady growth supported by real demand, thriving infrastructure and better buyer choice. With balanced conditions and lasting value on offer, it’s an ideal time to make your move locally.
The Block Daylesford: TV Hype vs. Market Reality
The Block’s Daylesford finale made headlines for all the wrong reasons, but beyond the TV drama, the regional outcome was far from a failure. With three homes selling over $3 million and millions injected into the local economy, the real winner wasn’t the contestants, it was the town.
Five tips to get your property ready for sale
Spring is peak selling season, with listings up 14.4% in August alone. Warmer weather, blooming gardens, and longer days bring buyers out in force. If you’re thinking of selling, small changes like freshening up your street appeal or boosting natural light can make a big impact on both speed and price.
50,000 new places in the Home Guarantee Scheme
From 1 July 2025, an extra 50,000 places are available in the Home Guarantee Scheme, helping eligible buyers purchase a home with a smaller deposit and avoid lenders mortgage insurance. The scheme has already supported over 160,000 Australians since 2020, with tailored guarantees for first-home buyers, regional buyers, and single parents.
How property markets are performing throughout Australia
Australia’s property market is maintaining steady momentum, with dwelling prices rising 1.7% in the first five months of 2025. Perth leads annual growth at 8.6%, followed by Adelaide and Brisbane. Nationwide, demand is outpacing supply, fuelled by interest rate cuts, strong migration, and renewed buyer confidence.