Buyers are snapping up deals in softer Victorian and NSW markets despite four rate hikes this year, while mid-size capitals lag and purchasers push for faster settlements.
As prices fall, clearance rates plummet and listings become harder to win, the underlying data tells a different story about softening market than what the national headlines suggest
According to PRD’s latest Australian Economic & Property Report 2nd Half 2026, the Time To Buy a Dwelling index rose to 88.4 points in October, up from 84.4 in September.
In contrast, when the federal budget was handed down in May, introducing major tax changes, the index plummeted to 70 points.
PRD chief economist Dr Diaswati Mardiasmo said buyers were still seeking value in softer markets despite constrained borrowing capacity, wanting to get ahead of possible cash rate cuts and price growth next year.
“A lot of buyers who are ready to purchase, who’ve been waiting in the wings are thinking, ‘Now’s my time’,” she said on the REX podcast.
She urged agents to make the most of the opportunity and present suburb-specific data on capital growth to hesitant buyers, to boost conversions and allow them to establish themselves as trusted experts.
Buyers flock to soft markets
Victoria recorded the highest reading at 93.1 index points, followed by NSW with 93.0 points, and Tasmania at 88.5.
Mardiasmo said buyers were trying to get ahead of future competition, remembering that when the Reserve Bank began cutting rates in 2025, prices rebounded quickly.
“Now that they’re seeing there’s cash rate hikes and buyers are becoming more cautious, a lot of buyers who are ready to purchase, who’ve been waiting in the wings are thinking, ‘Now’s my time’,”, she said.
She also said that despite borrowing power falling, the softer markets in Sydney and in Melbourne enabled lower entry points for price-sensitive buyers.
“They’re thinking, ‘Let’s get in now, while many buyers are not in the market, while prices are a little bit down, and we’ll bite the higher interest rate but make our savings later on when the cash rate is cut’,” she said.
She also noted that despite the days on market increasing across Sydney, Melbourne and Brisbane, and in regional areas, buyers were seeking faster settlements.
“People are taking their time to actually sign the dotted line to say, yes, I’m definitely buying this property because they want the best for their money,” she said.
“But once they do, they want as quick a settlement as possible so that they can get it at today’s interest rates, because there’s a possibility that there might be more cash rate hikes.”
Purchasers shun strong price growth
In contrast to the weaker markets, Mardiasmo noted the Time to Buy index had fallen across the cities where price growth remained strong, including Brisbane, Adelaide, and Perth.
“Those sorts of places, we’re seeing much stickier buyers in comparison to Greater Sydney and Greater Melbourne just because of the pricing,” she said.
Mardiasmo said while the data varied in each suburb, the cautious buyers were usually located in blue-chip, premium suburbs, while the more confident purchasers were in the medium price brackets.
“That can be the sweet spot for people who are ready to buy, who can capitalise on the lower demand or the slower price growth and later on gain that savings when there is a cash rate cut down the line,” she said.
Agents as educators: Cutting through the noise
To take advantage of the remaining demand in the market, Mardiasmo said agents should become educators and present data at a local level so buyers weren’t simply focusing on national headlines.
By highlighting past capital growth over the years in a particular suburb, she said agents can demonstrate their expertise and encourage hesitant buyers to act in the slower market.
“If you have a buyer that is hesitant because they’re saying, ‘Oh, but we’re hearing on the media that there’s a property price crash’ … Show them what’s actually happening in that specific suburb,” she said.
Mardiasmo said agents should be prepared to show figures on the median house or unit price, and historic one-year, five-year and the 10-year growth data specific to that suburb.
“I have investor clients that go, ‘Oh, but it’s reported that Australian homes are losing value’ and I say, ‘Well where are you actually wanting to buy? Where is your focus?’”, she said.
“I say that particular suburb is not the whole of Australia, and so I always bring it back to that.”
Listen to the full episode here.
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