Blog post by Empower Wealth

August 2026 Property Market Update: What Is the Data Telling Us?

There is a lot for property investors to digest right now.

Higher interest rates, persistent inflation, cost-of-living pressures and recent tax policy changes have all landed within a relatively short period of time.

Add the daily cycle of property headlines and forecasts, and it can become difficult to work out what is actually happening beneath the noise.

And this week’s RBA decision added another layer of uncertainty. While the Board left the cash rate unchanged at 4.35%, it made clear that inflation is still too high and that further rate increases remain on the table if inflationary pressures persist.

That’s why the Empower Wealth Research Team has produced our first Property Market Update — a regular look at the market and economic data we monitor when assessing Australian property markets.

You can download the full report here >

The market has lost momentum

The first thing that stands out is the change in short-term momentum.

The three-month pace of dwelling value growth has turned negative across most major capital cities, while regional Australia has remained comparatively resilient. Sydney and Melbourne house values have also now moved into negative territory over the 12 months to July 2026.

At the same time, units are telling a somewhat different story. Over the past year, units outperformed houses in seven of Australia’s eight capital cities.

Whilst it’s important to keep in mind that this is a combined regional figure, and individual regional markets may perform quite differently, the broader trend is clear. Three-month readings can move around from month to month, but the direction of the trend lines, together with weaker sentiment, points to further short-term headwinds.

This is an important reminder that even within the same city, different property types can behave very differently.

Buyers have become more cautious

Another notable shift is sales activity.

Compared with a year earlier, monthly dwelling turnover over the three months to July was down across every capital covered in the report, including 24% in Sydney, 19% in Melbourne, 39% in Brisbane and 33% in Perth.

Stock has also been building across many markets.

But importantly, the data does not necessarily suggest that owners are suddenly rushing to sell. Rather, fewer properties are being absorbed as buyer demand becomes more cautious.

And the longer-term picture hasn’t disappeared

While short-term conditions have softened, some of the longer-term structural issues facing Australia’s housing market remain.

Inflation is still sitting around 4%, the cash rate is at 4.35%, and consumer sentiment remains below the level typically associated with optimism.

At the same time, dwelling approvals are running at around 199,000 a year, while Australia’s population was growing by roughly 412,000 people annually to the end of 2025. These measures are expressed in different units, so they shouldn’t be compared one-for-one, but together they help provide context around Australia’s ongoing housing supply challenge.

That mix of short-term weakness and longer-term supply pressures is one reason we believe it is important to look beyond any single headline.

What does this mean for property investors?

Probably the most important takeaway from this report is that there is no single Australian property market.

Sydney is behaving differently to Perth. Houses are behaving differently to units. Regional markets are behaving differently to the combined capitals.

And within individual cities, the differences can be even greater.

That is why our Research Team looks across a wide range of indicators — values, rents, stock, turnover, days on market, demand and supply, economic conditions and suburb-level data — before forming a view.

The goal isn’t to predict the next headline.

It’s to build a clearer picture of the risks, opportunities and market conditions that may matter when making a long-term property decision.

Download the full August 2026 Property Market Update

The full report includes city-by-city analysis across Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and Darwin, together with suburb-level Demand Supply Scores and the economic indicators we’re monitoring.

Download here >

More resources

Understand our Location Hierarchy

Where you buy matters just as much as what you buy.

While market conditions change, the fundamentals of successful property investing remain the same. Our long-standing investment philosophy hasn’t changed — understanding the quality of a location is still one of the most important drivers of long-term performance.

Download our Location Hierarchy infographic to see how we assess different locations and identify investment-grade opportunities.

Download here >

Catch up on this week’s RBA decision

Interest rates remain one of the biggest influences on borrowing capacity, confidence and property market momentum.

In this week’s RBA announcement, the Board reaffirmed that inflation remains too high and, notably, included commentary on housing — something that has rarely featured so prominently in recent statements.

Read our analysis of what the decision means for borrowers, property investors and the broader market.

Watch here >

Generate Your Own Suburb’s Data

You can also do your own suburb-level research in Moorr, including exploring property-market data and suburb scores across Australia.

Learn more here >

Want to take the next step?

If you’re considering your next property move and would like to understand how current market conditions fit into your broader strategy, you can book a free, no-obligation initial consultation with the Empower Wealth team. Simply fill in the form below and our team will reach out to you.

Would you like to reference or use this Property Market Update?
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Categories: Property Research

Tags: Adelaide, Australian property market, Brisbane, Melbourne, Perth, Property Market, Sydney