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Sydney’s 2026 Property Market Forecast
- aupropertyplatform
- 22 hours ago
- 1 min read
Sydney’s housing market is expected to remain on a growth trajectory in 2026, although the pace of price increases is likely to be more moderate compared to recent years.
Analysts forecast dwelling values across Greater Sydney to rise between 5 – 8 % in 2026, supported by ongoing demand, constrained supply and modest population growth. This would build on the strong but slowing momentum seen in 2025.
According to PropTrack and other market forecasters, Sydney’s median dwelling price may climb from around $1.23 million to over $1.30 million by year’s end, with some house price forecasts pointing toward figures approaching $1.9 million or more in certain scenarios.
Affordability pressures and tighter borrowing conditions will temper growth, directing buyer interest toward more affordable outer-ring suburbs and middle markets.
Meanwhile, higher-end and inner-city segments may see slower gains as cost-of-living stresses limit buyer participation.
Rental markets in Sydney are also projected to remain tight, with rental rates rising as supply struggles to keep pace with demand. This ongoing imbalance suggests sustained investor interest even as overall growth moderates.
Overall, 2026 is set to be a year of steady, if uneven, growth in Sydney’s property market.
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