These 5 property regions may take off in 2026
There has been a noticeable shift in Australia’s property landscape over recent months. While no one can predict the market with certainty, several indicators suggest that conditions may be improving and that certain areas could be positioned for growth.
Here’s what the data and trends are pointing to:
1. Buyer Demand Strengthening
Search activity on major real estate platforms is now at its highest level since late 2021. This suggests more buyers may be preparing to re-enter the market following a period of caution.
If this trend continues, competition for quality listings could increase.
2. Housing Supply Is Still Tight
New listings have fallen year-on-year, and total available stock remains below the long-term average in most states.
In some regions, listings are down more than 40%.
When supply stays low and demand begins to rise, prices can trend upward although the pace will differ widely by location.
3. Rate Cuts Increase Borrowing Power
Recent interest rate cuts by the RBA have helped improve borrowing power for many buyers.
This shift may encourage more first-home buyers and upgraders to take action.
Some major banks have forecast the possibility of steady growth over the next two years, but these are broad projections and not guaranteed.
4. First-Home Buyers Are Returning to the Market
Government schemes like the First Home Guarantee, are making it easier for first-home buyers to purchase with just a 5% deposit for their first home.
This has already increased demand in several regions which were considered affordable just until 12 months ago.
As First-Home Buyers’ participation grows, competition for entry-level housing may rise as well.
5. Sentiment Has Become More Positive
Recent surveys show a large portion of Australians expect property prices to rise over the next 12 months.
While sentiment alone does not drive markets, it often influences timing and buyer behaviour.
Combined with low supply and improved affordability, this positive mindset may contribute to increased activity.
Five Locations to Watch in 2026
Based on affordability, search trends, rental demand, and local economic activity, here are five areas that may offer good opportunities in 2026.
1. Central Queensland (QLD)
Offers relative affordability, ongoing population growth and strong infrastructure investment. These factors may support long-term demand.
2. Wheat Belt (WA)
Low days on market and tight rental conditions suggest interest may continue building, particularly with WA’s strong migration numbers. International events and attractions like UFC and WWE also seem to favour WA over rest of Australia.
3. Central Coast (NSW)
Affordable price points combined with strong liveability elements like health, education, and transport projects could help sustain steady buyer interest and take edge off from the hot and overpriced Sydney market.
4. South Eastern South Australia (SA)
Defence investment, port redevelopment, and lifestyle appeal may support future growth, especially as Adelaide continues to attract interstate buyers from capital cities of Australia like NSW, QLD and VIC.
5. Townsville (QLD)
While Townsville has already been on a hot streak in 2025, local job creation and strong regional appeal combined with relatively affordable prices could make this an area to keep an eye on in 2026.
While nothing is guaranteed, the combination of low supply, improving affordability, and rising buyer activity suggests this may be a good time to reassess your property goals.