Six trends to watch in Australian property in 2026

Scott Kuru January 6, 2026 4 min read

KEY POINTS

National real estate chain LJ Hooker sees slower, uneven price gains in 2026, with Perth, Adelaide and Brisbane likely to outperform Sydney and Melbourne
Stable rates, rising population growth and improving confidence are expected to lift listings and attract more investors, first-home buyers and upgraders, but with the playing field still tilted towards vendors
Affordability and lifestyle shifts will reshape demand, steering buyers toward value, energy-efficient homes and multigenerational living as rentals remain tight

LJ Hooker says it expects property prices to rise this year, albeit at a slower and more uneven pace than 2025.

Australia’s second largest real estate network has also nominated six trends that it says will shape property market activity in 2016 and a list of suburbs to watch - mainly in affordable areas of capital cities - where some of the trends it has identified are likely to be in play.

The details

LJ Hooker says confidence returned to the property market in 2025, but price rises in the year ahead are likely to be at a slower and more uneven pace.

The real estate chain says it anticipates more affordable capital cities, such as Perth, Adelaide and Brisbane, to continue to outperform Sydney and Melbourne, where growth slowed towards the end of 2025.

Image from LJ Hooker

LJ Hooker’s Head of Research and Business Intelligence, Mathew Tiller, says once the Reserve Bank of Australia started cutting rates in February 2025, buyers adjusted to the new level of repayments, turning up at open homes and auctions in larger numbers.

“Interest rates are expected to stay on hold for most of 2026, so the cash rate becomes the new normal rather than the main driver,” he says.

“Against that backdrop, we anticipate that listings, supply and demand will push market performance.

“The number of buyers looking at property should remain solid, supported by population growth and improving confidence.”

Matthew Tiller predicts investors will be active in 2026, while a more stable interest environment and slower price growth may encourage more first-home buyers and upgrades to move when the right property comes up for sale.

“It is shaping up as a year of adjustment rather than a boom or a bust, with the market balancing out slowly rather than sharply,” Mr Tiller says.

“This is good news for sellers and buyers; there will be both motivation and reassurance to make a move in the coming year, and this should keep increasing turnover.”

Given those baseline conditions, LJ Hooker says it has identified six trends for property in 2026.

A “patchwork” of price rises:

Image from LJ Hooker

LJ Hooker says the more affordable capital cities such as Perth, Adelaide and Brisbane are expected to continue to outperform Sydney and Melbourne in 2026, as local supply and demand play a bigger role than interest rates.

Against that backdrop, it nominates the suburbs of Ripley, Griffin and Petrie in the Greater Brisbane area, Port Adelaide and Munno Para West in Adelaide, and Alkimos and Ellenbrook in Perth’s northern suburbs.

Sellers emerge from “hibernation”:

LJ Hooker says after a long period of very low stock levels of existing properties, more owners are expected to test the market in 2026.

The national real estate chain says extra listings should take some heat out of price growth, but with underlying housing supply still tight, most areas are likely to remain “seller-friendly” markets.

It says suburbs to watch for this trend are Leppington and Dulwich Hill in Sydney, Winter Valley in the Victorian city of Ballarat, Baringa on Queensland’s Sunshine Coast and Petrie in Brisbane, the town of Mount Barker to Adelaide’s south east, Sorell in Tasmania, the Darwin suburbs of Zuccoli and Rosebery, and Giralang and Denman Prospect in the ACT.

“Value not postcodes”:

LJ Hooker says affordability pressures are pushing more buyers to chase value, rather than focusing on a single suburb or postcode, shifting demand towards more affordable cities, outer suburbs and key regional hubs.

It says this is likely to see townhouses, dual occupancy dwellings and mid-rise apartments increase in popularity.

The real estate chain predicts first-home buyers will be particularly active in Penrith and St Marys in Sydney and Werribee, Sunshine West and Tarneit in Melbourne’s west.

Ripley, in the Brisbane-Ipswich growth corridor, gets the nod again, as does Munno Para West on Adelaide’s northern outskirts, Ellenbrook and Baldivis in Perth and Brighton to Hobart’s north.

“Rental squeeze, building freeze”:

LJ Hooker says it expects rents to stay high in 2026 because of a continuing shortage of new homes, especially medium and high-density projects.

This is keeping vacancy rates low, supporting rent growth and maintaining investor interest.

Suburbs where demand for rental properties will remain strong are expected to include Parap in Darwin, Griffin in Brisbane’s north, Bonython in Canberra and Port Adelaide.

“EV Ready Beats NBN Ready”:

“As more households buy electric vehicles and pay closer attention to power bills, buyers will be looking for homes with solar, batteries, charging stations and modern switchboards,” LJ Hooker predicts.

It says older properties that can be more expensive to run and with no “green” features will be seen as dated and harder to sell or rent.

“Multi gen living goes mainstream”

LJ Hooker says high housing prices and tight rental markets are encouraging more families to live together for longer, increasing demand for “multi-generational” homes that can comfortably fit parents, adult children and grandparents.

“Floorplans with a second living area, separate bedroom suites or a self contained studio or granny flat are likely to become more sought after,” the real estate network says.