Shellabears Blog

2026 Market Property Outlook: Where Opportunity Is Emerging

January 2026

As we roll into 2026, there’s been another noticeable shift in the conversation around the economy and interest rates. The RBA has clearly adopted a more hawkish (tightening) tone. I’ll be watching the December data coming out next week with keen interest (pun intended). With the rate of inflation tipped to be the deciding factor on whether it will be holding steady for longer, or looking to increase.

The lower and middle of the market has continued to move sharply and has garnered the focus of the media, the upper end has shifted out of the spotlight.

Entry level and the middle are facing intense competition with affordability, first home buyer activity and yields from a strong rental market all intersecting. Prices here have adjusted quickly with listings being absorbed fast. Again, the media is looking at historical data and is spruiking what has happened months ago so positioning yourself for the next move is the important play here.

Setting yourself up with your next home before the rest of the market realises what’s going on will get you more bang for your buck. Many of my recent sales have been to Buyers who are pre-purchasing their next move and are taking advantage of a strong rental market now, with the plan to move into the new property in a few years. A great opportunity to do that would be the apartment at 7/6 Tasker Place which would rent very comfortably for well over $1000/week providing a Gross Yield upwards of 4% along with the future capital gains.

Interestingly, the higher end of the market has moved out of the spotlight. Much of the commentary right now is focused on entry level activity and government incentives, which means the top end is being under-reported and, in some cases, misunderstood. With fewer transactions taking place, the statistics can look flat or unclear, but that’s more a function of low volume than weak demand. I see great opportunity in this space.

When discussing property, strategy, pricing and positioning matter more than ever. There’s no single market right now, but plenty of opportunity if you know where to look and how to move.

If you’d like to talk through what this means for your own situation, whether buying, selling or simply planning ahead, I’m always happy to have a chat.

7 Things I’m Watching

Interest Rates & Capital	What’s happening RBA has maintained thier commentary on a tightening base Why it matters Buyers getting lower principal amounts with reduced serviceability Market impact ⬇️ Downward pressure on prices
Population	What’s happening Increasing Why it matters More people = more housing demand. Market impact ⬆️ Upward pressure on prices
Employment	What’s happening National employment remains strong, with WA leading the charge. Why it matters Job security underpins buyer confidence. Market impact ⬆️ Upward pressure on prices
Building	What’s happening Still below long term approvals and completion, some increase in apartments in Eastern States Why it matters Increased demand for established property Market impact ⬆️ Upward pressure on prices
Stock	What’s happening Listing supply remains tight. Record low supply continues Why it matters Owners are sitting and waiting for the right property. They want to move, but can’t find the right place Market impact 🔥 Intense competition for quality homes
Investment Properties	What’s happening Investment lending has increased significantly. Why it matters Rental demand remains strong due to population growth. Market impact ⬆️ Upward pressure on prices, particularly for high-yield properties
Government – Intervening as always!	What’s happening First Home Buyer Guarantee schemes continue, alongside state-led zoning reforms. Why it matters Substantial demand on sub $850,000 properties Possibly flooding the market with supply of development sites Market impact ⬆️ Powerful upward pressure on prices ⬇️ Possibly downward pressure on development values

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