Property Market Snapshot — August 2026
Higher interest rates, affordability pressures and ongoing economic uncertainty are continuing to shape conditions across Australia’s property market. For buyers, though, the mood has shifted: homes are taking longer to sell, auction activity has cooled, and there’s more room to negotiate than there’s been in some time.
A softer market, at least for now
KPMG’s latest outlook points to subdued conditions through the rest of 2026, with national house prices forecast to slip 1.1% before a recovery takes hold in 2027. Units are tipped to hold up better, with prices expected to keep climbing over the next two years.
Changes to SMSF property borrowing
From 10 August, the rules around what a self-managed super fund can borrow against have tightened. A new clause has been added to the definition of an “acquirable asset,” meaning only property that qualifies as business real property can now be financed through an SMSF loan.
Contracts signed before 10 August 2026 are grandfathered under the old rules, though it’s not yet clear how many lenders will keep offering products in this space. Residential property can still be bought outright within an SMSF using cash reserves.
Interest rates: on hold, for now
The RBA left the cash rate unchanged at 4.35% at its latest meeting, in line with market expectations. Annual headline inflation eased to 3.8% in the year to June (down from 4% in May), while underlying inflation held at 3.6%.
That softer inflation print has a growing number of economists suggesting the cash rate may have already peaked, with several now tipping no further moves for the rest of 2026 — though the timing of any future change is still far from certain. The next decision is due on 29 September.
If you’ve been with the same lender for a while, now’s a good time to check your loan still stacks up. ASIC has also flagged offset account errors affecting some borrowers recently — worth checking via your banking app, your statements, or directly with your lender that your offset is reducing the interest calculated on your loan.
How values are moving
National property prices fell 0.7% in July — the steepest monthly drop since December 2022, according to Cotality. Sydney (-1.4%) and Melbourne (-1.2%) continue to lead the declines, and the softening has now spread to Brisbane (-0.6%) and Adelaide (-0.2%), markets that had been holding up well until recently.
“There’s been a really rapid deterioration in conditions in Brisbane, which I think has probably been the most surprising trend that we’ve seen over the last couple of months,” said Cotality’s head of research, Gerard Burg, noting stock on the market in Brisbane has swung from 25% below the five-year average in February to around 6% above it now.
Regional areas weren’t immune either, recording their first monthly decline (-0.2%) since January 2023.
Getting ready for spring
With the spring selling season approaching and more motivated sellers expected to list, buyers who’ve done their finance groundwork will be best placed to move quickly when the right property comes up.
Let’s get your finance sorted before spring
Whether you’re chasing pre-approval, reviewing your current loan, or just want a clearer picture of your borrowing power, get in touch and we’ll walk you through your options.