Property Expert Predictions

Last week I indicated that price growth locally for the next 6 months would be fairly neutral and I still stick by that. Property experts in a Sydney Morning Herald article this week see a stronger market in 2026. With our median suburb prices being significantly higher than the Sydney wide medium house price at $1,760,000 and medium unit price of $844,390 , I feel that price growth in our main price sectors on the Northern Beaches will still be flat and that the majority of the price growth experts are predicting will be at the lower end and middle part of the market. People can only borrow and afford so much. The full article is attached here. https://www.smh.com.au/property/news/how-far-property-prices-will-rise-in-2026-20260127-p5nxcy.html
 

“House prices will rise 5.8 per cent in Sydney during 2026, KPMG’s Residential Property Outlook, released on Wednesday, forecasts. Units are expected to rise at a similar pace up 5.3 per cent in Sydney. Several forecasters expect property prices to rise this year. Recent Domain research tips Sydney house prices to rise 7 per cent this year and Melbourne 6 per cent. The four major banks are largely predicting single digit home price growth.” The driving factors are mainly a shortage of houses and units, population growth, stable interest rates and at the entry level first home buyers deposit guarantee scheme for buyers up to $1,500,000 in Sydney. There is also expectations that apartments will out preform houses due to units being relatively cheaper and easy to afford. It will be interesting to see what actually happens.