Local Property Report 2026
CEO Insight. As we step into 2026, it’s a great time to reflect on the trends shaping the Australian property market over the past year and what we can expect in the months ahead. 2025 was a year of recalibration. Market conditions began to stabilise. Buyers regained confidence, enquiry levels lifted and transactions that had previously been deferred moved forward. Sellers responded to the improved sentiment with increased activity, particularly in the second half of the year. Across our network, the market shifted toward more balanced conditions, with metropolitan areas recording steady turnover largely driven by owneroccupiers, while regional and coastal areas continued to attract high-quality buyers focused on lifestyle and long-term value. Across price points and locations, the common thread was a return of confidence in the decision-making process, enabling buyers and sellers to act with clarity and purpose. Spring 2025 again highlighted the market’s cyclical nature. Listing volumes increased compared with prior seasons, while buyer engagement remained solid. Agents across Belle Property, Acton | Belle Property and Hockingstuart reported strong competition for well-presented homes, reinforcing the importance of preparation, transparency and clear strategy in achieving strong outcomes. The year also marked the successful launch of First to see, our digital marketing initiative designed to provide buyers with early access to new listings. The platform quickly gained traction, increasing enquiry and creating early momentum ahead of public campaigns. For buyers, it streamlined the search process; for sellers, it delivered immediate exposure NICK BOYD BELLE PROPERTY, HOCKINGSTUART & ACTON | BELLE PROPERTY to a qualified and engaged audience. Looking ahead to 2026, the fundamentals are encouraging. Housing affordability and supply will remain central to the national conversation, particularly as policy settings around CGT continue to evolve. While interest rate movements will remain a key consideration, buyer confidence has proven resilient. The past year has reinforced an important principle: the real estate market is as much about process as it is about price. The best agents combine market knowledge with a disciplined approach to campaign strategy, bridging the gap between seller expectations and buyer needs. As we move through 2026, our focus remains on delivering exceptional results, leveraging innovation like First to see, and ensuring our clients experience a seamless, transparent and successful property journey. Our teams are well-positioned to guide clients with expertise, honesty and strategic insight, helping them navigate the market with confidence and clarity. With confidence continuing, supply improving, and buyer engagement rising, we enter 2026 with optimism and momentum. It promises to be an exciting year for our clients, our teams and the wider Belle Property, Hockingstuart and Acton | Belle Property network. Front Cover: 27 Norwood Grove, Toorak Gardens, SA
v Discover it with First to see. First to see gives you exclusive early access to exceptional properties before they reach the wider market. Gain priority access to new listings, allowing you to arrange inspections and make offers sooner. With fewer buyers competing, you have a clear advantage in securing your dream home. Register and be the first to know when a property matching your criteria becomes available. 51 Beach Road, Collaroy NSW Scan the QR code to register.
Economic snapshot. The economic narrative has completely changed over the past six months, with the data suggesting that the economy is improving with more momentum than most (including the RBA) expected only a few months ago. If we think back to August 2025, confidence was building that the battle against inflation had more or less been won, and despite a recovery in household incomes, consumer spending and business conditions remained subdued. We entered FY26 with the hope that the recovery in household financial conditions would support a lift in business activity in the new year, but there were few clear signs in the data at that point. Since then, the run of data has gone from strength to strength. Households, after pulling back from discretionary spending, have bounced back. Business conditions and profitability have improved back in line with long-run levels. Meanwhile, the housing market gradually built momentum in 2025, with capital city residential property prices growing by 8.3%. But with this momentum comes the question of capacity, and whether demand in the economy still exceeds supply. Inflation data in January confirmed this is the case, accelerating through the second half of last year. Annual core inflation in 2025 was 3.4%. Inflation is moving away from the RBA’s 2.5% long-term goal, and their February forecasts show it reaching 3.7% in June 2026, well above where they had forecast in August last year. This is why the RBA has commenced hiking and why the market expects more to come. With private sector momentum building and no clear path for inflation to return to 2.5%, we expect the RBA to unwind the 75bp of cuts delivered in 2025 throughout 2026. This started at their February Senior Economist at Judo Bank Matt De Pasquale meeting, and will likely be continued in May and August. The risk however is for a greater and quicker increase in the cash rate. How these rate changes are likely to impact the property market is open to debate, particularly given the structural shortage of housing in Australia. Our expectation is that residential property prices will broadly remain unchanged this year. Certain markets will likely see more pronounced decline, driven from a rapid slowdown in investor activity from higher funding costs and tighter credit conditions. This would likely play out in the states and territories that have experienced elevated investor activity over the past year or so (NT, WA, SA & QLD). Investors are historically more sensitive to changes in mortgage rates and tend to react more quickly than owner-occupiers. Owner-occupier stress stemming from these rate rises is likely to be less pronounced than the sharp nominal tightening period of 2022–23. Real household incomes have improved, and households, on average, continued making extra mortgage repayments during the 2025 easing cycle. Overall softness in property price growth from these predicted rate rises however will likely be limited by both ongoing strength in labour markets and the significant dwelling shortfall in supply with approvals continuing to fall short of National Housing Accord targets. Source:Bloomberg, RBA, Judo Bank www.judo.bank
The Belle Property, Hockingstuart and Acton | Belle Property brands are trusted names across the country, with more than 200 offices operating in select lifestyle locations across New South Wales, Victoria, Queensland, South Australia, Western Australia, Australian Capital Territory and Tasmania. Our full-service agencies apply the same level of commitment and attention to detail to all properties, whether it’s a simple studio or a multi-million-dollar residence. While we may be spread across different regions, all our offices and dedicated real estate agents are united by a shared set of values: honesty, respect, openness, integrity and professionalism. Our connected network of offices gives us access to a national database of over 3 million property seekers, bespoke marketing resources and exclusive supplier partnerships. This powerful combination helps us maximise buyer interest, increase competition and deliver exceptional sales outcomes for our clients. Across the network, strategically aligned office clusters also allow us to better service specific regions, sharing insights, buyer demand and opportunities to achieve the best results for our clients. Our global network of real estate and media partners, including Leading Real Estate Companies of the World, Luxury Portfolio International and James Edition, enable us to deliver sophisticated customer experiences, unlock unique opportunities and provide premium services that consistently achieve superior results across any market. Our network. Our connected reach.
Preston Reservoir Experts in your neighbourhood. Hockingstuart Preston & Reservoir continues to lead the local property market, with Josie Galati at the forefront of its success. "House prices in Preston and Reservoir have continued to rise steadily," Josie explains. "This reflects the suburbs' growing appeal to first-home buyers, professionals, and families returning to the area." Whether you're buying, selling, or investing, Josie Galati and Hockingstuart Preston & Reservoir offer a premium experience backed by proven results and trusted local expertise. As we move through 2026, the Preston-Reservoir property market remains highly competitive. Stock levels are tight, with strong buyer demand continuing to outpace supply. This inner-north pocket of Melbourne is benefiting from its proximity to the CBD, excellent public transport options-including the Mernda train line and multiple tram and bus routes-and a growing café and retail culture that appeals to both young professionals and families. The area's appeal is further boosted by infrastructure upgrades and the ongoing revitalisation of High Street, which continues to attract new businesses and lifestyle amenities. With median house prices in metro Melbourne softening slightly, Preston and Reservoir are emerging as attractive options for buyers seeking value without compromising on connectivity or lifestyle. What truly sets this area apart is its balance of urban convenience and green space. From Edwardes Lake Park to Darebin Creek trails, residents enjoy easy access to nature, while still being just 10km from the city. This blend of affordability, accessibility, and amenity makes Preston-Reservoir a standout in Melbourne's evolving property landscape.
Preston & Reservoir 4 Willow Street, Preston Sale Price: $1,560,000 3 a 1 b 2 c Hockingstuart Preston | Reservoir | 03 9471 1100 14 Wilcox Street. Preston Sale Price: $1,381,000 3 a 1 b 2 c 57 Dredge Street, Reservoir Sale Price: $1,500,000 4 a 2 b 8 c 30A Dwyer Avenue, Reservoir Sale Price: $1,400,000 4 a 2 b 2 c 49 Robeson Street, Preston Sale Price: $1,270,000 3 a 1 b 2 c 16 Crawley Street, Reservoir Sale Price: $1,435,000 3 a 2 b 3 c 10A Latrobe Street, Brunswick Sale Price: $1,650,000 4 a 3 b 2 c 11 Caton Avenue, Coburg Sale Price: $1,510,000 5 a 2 b 4 c 2/80 Woolton Avenue, Thornbury Sale Price: $1,365,000 3 a 2 b 2 c 8 Bray Street, Reservoir Sale Price: $1,220,000 4 a 2 b 4 c 90 Broadhurst Avenue, Reservoir Sale Price: $1,015,000 3 a 1 b 2 c 37 Dumbarton Street, Reservoir Sale Price: $1,032,000 3 a 1 b 4 c
hockingstuart.com Expertise you can trust. Hockingstuart Office Name 123 Street Address, Suburb, State 0400 000 000 Hockingstuart Preston | Reservoir 555 High Street, Preston VIC 3072 Josie Galati 0431 621 614 Joe Ledda 0418 176 858
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