The property market after Budget 2026 has remained more resilient than many experts expected. Following the Federal Government’s proposed tax reforms, including changes to negative gearing and capital gains tax, many investors were concerned about the potential impact on property prices.
However, more than a month after Budget Night, property values have remained relatively stable across most markets. Combined with a pause in interest rate increases, current conditions are creating new opportunities for home buyers while continuing to support long-term property values.
Whether you’re planning to buy your first home, upgrade, invest, or refinance, understanding how the property market is responding can help you make more informed decisions.
Property Market After Budget 2026: What the Latest Data Shows
The property market after Budget 2026 has become a major focus for buyers, sellers, and investors looking to understand how the proposed tax reforms may influence property values.
While there was considerable uncertainty immediately following the Budget announcement, recent market data suggests that housing markets remain supported by strong fundamentals, including population growth, limited housing supply, and ongoing demand from owner-occupiers.
According to recent property market data, several capital cities recorded only modest movements in home values during the immediate post-budget period, while others continued to see price growth.
Property Prices Across the Capital Cities
Recent figures reveal a mixed but generally stable picture.
Sydney’s median home value sits at approximately $1.238 million, with prices easing by 0.2% during the month. Melbourne recorded a similar decline of 0.2%, bringing its median value to approximately $846,000.
Perth experienced a slight decline of 0.1%, while Canberra saw the largest monthly fall among the major capitals at 0.4%.
However, several cities continued to post gains:
- Adelaide recorded a 0.3% increase
- Darwin rose 0.3%
- Hobart gained 0.2%
- Brisbane increased 0.1%
These results demonstrate that the property market after Budget 2026 has not experienced the widespread downturn many feared. Instead, growth has moderated in some areas while remaining positive in others.
Regional Markets Continue to Outperform
Regional markets once again delivered strong results.
Property values across regional areas increased by 0.2% overall during the month, outperforming several capital city markets.
Some of the strongest performers included:
- Regional South Australia: +0.7%
- Regional Tasmania: +0.5%
Affordability, lifestyle appeal, and ongoing migration from metropolitan areas continue to support regional property demand.
Thinking About Buying in the Current Market?
As conditions become more balanced, buyers may have greater opportunities to negotiate and secure the right property.
Whether you’re purchasing your first home, upgrading, or investing, understanding your borrowing capacity is one of the most important first steps.
At Zippy Financial, we can help you:
✔ Calculate your borrowing power
✔ Compare home loan options from multiple lenders
✔ Understand your purchasing budget
✔ Navigate changing market conditions with confidence
Speak with our team today to explore your options and take the next step towards your property goals.
Why Property Price Growth Is Slowing
While prices remain resilient, the pace of growth has begun to moderate.
This is not unusual given the strong gains recorded over recent years. National property values have experienced substantial growth, and today’s softer conditions appear more like a market normalisation than a significant correction.
Several factors are contributing to slower growth.
Affordability Challenges
Higher property prices have reduced affordability for many buyers.
As borrowing costs and living expenses remain elevated, some buyers are becoming more cautious, naturally easing demand and slowing price growth.
Investor Uncertainty
The proposed tax reforms announced in Budget 2026 created uncertainty among some investors.
While many investors are taking a wait-and-see approach, owner-occupiers continue to drive a significant share of market activity, helping maintain stability across many housing markets.
More Negotiating Power for Buyers
Properties in some markets are taking longer to sell, giving buyers additional time to conduct research and negotiate with sellers.
For many purchasers, this may represent a welcome change from the highly competitive conditions experienced in recent years.
Why a Major Price Correction Appears Unlikely
Despite the moderation in growth, many analysts believe a sharp correction remains unlikely.
Several long-term fundamentals continue to support the property market after Budget 2026.
Owner-Occupiers Remain the Largest Buyer Group
While investors have received much of the attention following the Budget announcements, owner-occupiers continue to account for a large proportion of property purchases.
Importantly, owner-occupiers are not directly impacted by the proposed changes to negative gearing and capital gains tax.
This ongoing demand continues to support property values.
Population Growth Continues to Drive Demand
Population growth remains one of the strongest drivers of housing demand.
Recent figures show the population increased by approximately 1.5% over the past year, adding more than 400,000 people who all require housing.
As population growth continues, demand for homes is expected to remain strong.
Housing Supply Remains Critically Low
One of the biggest challenges facing the property market is the ongoing shortage of housing supply.
Industry estimates suggest that more than 250,000 homes were needed in 2025 to meet demand, yet significantly fewer new homes commenced construction.
Labour shortages, rising building costs, planning delays, and supply constraints continue to limit new housing supply.
As a result, demand is expected to exceed supply for several years, providing ongoing support for property values.
Opportunities for Home Buyers
While underlying market fundamentals remain strong, today’s conditions may create opportunities for buyers.
A more balanced market can mean:
- Less competition
- More time to make decisions
- Greater negotiating power
- Improved property selection
- Potential opportunities before the next growth cycle
For buyers who are financially prepared, current conditions may provide a valuable opportunity to enter the market.
What’s Next for the Property Market?
The outlook for the property market after Budget 2026 remains broadly positive.
Although price growth may continue to moderate in some locations, strong population growth, limited housing supply, and ongoing buyer demand are expected to support property values over the medium to long term.
Rather than signalling a downturn, current market conditions suggest a transition towards a more balanced and sustainable property market.
For buyers, investors, and homeowners, staying informed and having the right finance strategy will be key to making the most of the opportunities ahead.
Ready to Explore Your Home Loan Options?
Whether you’re buying your first home, upgrading, investing, or refinancing, having the right lending strategy can make a significant difference.
Contact Zippy Financial today to discuss your options and take the next step towards achieving your property goals.
Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Connect with Louisa on Linkedin.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
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