Australia’s residential property market has shifted from momentum to correction, with higher borrowing costs, weaker buyer confidence and changing investor economics putting pressure on housing values. Yet falling dwelling prices do not automatically mean relief for renters, because if investors sell rental properties or reduce their exposure to new housing supply, rents can continue rising in an already constrained market.
That creates an unusual situation for the Australian property market in 2026. Buyers may finally have more negotiating power, while renters continue to compete for a limited pool of available homes.
The property market. . .
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