Guide, advise, sell: Agents’ strategy for the 2026 market

To capitalise on 2026 market trends, she said that agents should advise their clients on incentives, liveability, infrastructure, risk, and long-term suburb potential.

Additionally, she advised agents to do a deep dive into their area, understanding safety, environmental risks, educational offerings, local jobs, healthcare, and transport, to help buyers make informed choices.

Mardiasmo said that agents will also have to keep up with rapid economic shifts and market trends to continuously provide their sellers and potential buyers with further knowledge and insights.

2026 market trends

Over the next 12 months, Mardiasmo said dwelling prices will once again be tied to interest rates, inflation, the global economy, and the first home buyer schemes.

“While inflation pressures could keep interest rates stable, a cash rate increase if inflation rises could slightly dampen demand but encourage buyers to act under safer conditions,” Mardiasmo told REB.

“A rate hike could also impact Melbourne’s market recovery and stabilise Sydney.”

Additionally, Mardiasmo said that high building costs, including wages, materials, land, and infrastructure fees, along with a slowdown in new construction, will likely make existing homes a more attractive option than new builds.

Following the ongoing house price increase and low supply, Mardiasmo said agents will see buyers turn to higher-density living, especially in cities and populated areas.

“In the coming years, units, apartments, and townhouses are expected to see the highest demand due to growing affordability issues with houses.”

“More specifically, two-bedroom, one-bathroom apartments will be the most popular configuration for future potential buyers.”

She said that detached houses will remain highly demanded in 2026, but soaring prices will limit entry into the market for many first home buyers.

On the other hand, she noted that investors will target detached houses with four to five or more bedrooms, which offer higher yields and soaring rents.

Mardiasmo said that the demand for numerous bedroom houses will also lead to a surge in multi-generational houses.

“Multi-generational houses are also becoming more popular due to their ability to keep up to date with changes in individual living standards.”

“Additionally, it combats the rising housing costs as the house will be inherited by the next of kin in the house.”

She said that to attract and cater to multi-generational buyers, agents will have to provide more detailed information on surrounding schools and universities, proximity to medical facilities, public transport, and crime rates.

Investors to be more cautious

On the investor side, Mardiasmo said that agents will be more cautious in their investments, balancing risk with long-term growth.

“Agents will have to focus on peace of mind and on underdeveloped areas that have the potential to boom over the next 5–10 years,” she said.

According to Mardiasmo, Sydney is expected to see house price growth of 6–8 per cent, with median prices reaching a minimum of $1.7m, while Brisbane could experience a 7.4 per cent rise, adding around $154,000 to median prices by the end of 2026.

Down south, Melbourne’s median house prices have been projected to grow between 6 and 10 per cent, increasing $65,000–$100,000 or more, potentially pushing the median above $1 million.

In the region, data showed that the Sunshine Coast is projected to grow by 5–7 per cent, the Gold Coast by 10–13 per cent, while Townsville could see a $156,000 increase on its $520,000 median (25–30 per cent).

Similarly, Wollongong is set to surpass $1 million, Newcastle and the Central Coast are expected to rise 6–10 per cent, and Ballarat’s median prices are estimated to climb $154,000.

Geelong is the only area expected to decline slightly, with growth projected between -2 and +1 per cent.

First home buyers to be supported

As first home buyers will continue to flood the market, Mardiasmo said agents will have to be empathetic and provide more hands-on guidance to secure the sale and future clients.

She said that over the next 12 months, the First Home Buyer scheme will continue to reshape the lower end of the market, lowering barriers to jump on the property ladder but increasing prices overall.

“First home buyers face anxiety and stress purchasing their first home, and want to be provided all the information they need to consider before buying or taking advantage of government and state incentive programs,” she concluded.