The Reserve Bank didn’t cut the official cash rate in November, leaving it at 3.60%.
At time of writing there is the expectation of up to two cuts in 2026. ANZ was tipping one 25 basis point cut in March, taking the cash rate to 3.35%.
CBA did not predict any cuts, NAB predicts a 25-point cut in May, while Westpac saw 25-point cuts in May and August, taking the rate to 3.10%. Sydney, Melbourne and Brisbane are expected to dominate price growth in dollar terms, with Sydney’s median house price expected to be more than $1.92 million by the end of 2026, and Melbourne to top the million-dollar mark.
According to Westpac, Sydney house prices could increase by 8% in 2026, Melbourne by 10%, Brisbane and Perth by 8%, Adelaide by 6% and
“For those already in the market, it’s great news for their equity.” says Canstar’s Sally Tindall. “But for buyers, the deposit hurdle is getting higher.”
by the end of 2026 comes into force from July 1, with conveyancers, property lawyers, real estate agents and accountants obliged to comply with anti-money laundering and counter terrorism financing regulations.
These include the appointment of a compliance manager, staff training, due diligence on clients, and reporting of suspicious transactions.
Expect a continuing property price boom, fuelled by lower interest rates, supply shortages and first home buyer incentives.
The Westpac-Melbourne Institute House Price Expectation Index - a strong predictor of consumer confidence - was sitting at 172 in November.
Preparation should begin earlier. AUSTRAC intends to issue sector-specific guidance from the end of January, and enrolment for Tranche 2 entities opens from March 31.
Keep an eye on the AUSTRAC website for updates.
Australia’s population is aging. The ABS predicts that by 2050, over one-third of Australians will be 55 or older. Just 40 years ago, only one-sixth were in this age group. “As our demographic makeup changes, so too will the types of housing we need,”
That was up 12.2% in the year, and 34% in the year.
Back in 2021, the indicator reached a high of 164. In the year that followed, prices rose 16%.
The housing affordability crisis could worsen, but some economists predict the market might peak in 2026, followed by a downturn.
commented realestate.com.au’s Angus Moore.
“Older households are smaller, with four in five having just one or two people. But much of our housing is still large, detached homes… with many living in homes larger than Real estate tycoon John McGrath has released the 2026 McGrath Report detailing his hot property tips for 2026. They include: Ashbury, Newport, Sans Souci, Haberfield, Norah Head. West, West Melbourne, Box Hill, Carisbrook. Clear Island Waters, Peregian Beach. Point, West Launceston, Miandetta, Acton.
they need.” There is a growing need for retirement or aged-care living, and smaller, low maintenance homes.
However, barriers to downsizing include the hassle of moving, emotional attachment, and cost concerns.