10 insights into the investment property market

What a difference a month makes! The property market is never dull and the start of 2026 has proved the point. It is a tale of two cities – or at least two sides of the country – with Perth going gangbusters and the Melbourne and Sydney markets steadying. Conflict in the Middle East has escalated faster than anyone imagined, fuelling expectations of another RBA rate rise later this month.   

Each month we pull together 10 insights impacting the investment property market. Read on for this month’s instalment … 

1. Two-speed market: The median house price in all capitals is over $1m for the first time but the growth story is not consistent across the country. February figures form Cotality showed Perth values up 2.3% while Sydney and Melbourne ‘flatlined’. Low-listings are driving growth in all but Melbourne (down 0.4% over the rolling quarter) and Sydney (down 0.1%) where sentiment weakened. The catch for investors is that competition for lower-priced properties remains tough. Proptrack analysis showed that “across the capital cities, annual growth for houses and units remains similar. However, momentum is shifting, with units outpacing houses over the past quarter.”
2. Regions lead the way: Australia’s regions take the prize when it comes to house price growth – up 10.5% over the past year (compared with 8.6% in metro areas) and 59% (compared with 41%) over the past five years, according to Proptrack’s Home Price Index. Cotality also reports the regions outperforming capitals in NSW, Victoria, South Australia and Tasmania.
3. Cash flow pressures. The good news is that rents were up 1.7% nationally in the three months to February and the rental index is up 5.5% for the year. The bad news (or slightly less good news) is that while rental growth may be up strongly in Darwin, it has eased in Adelaide, Perth and the ACT.
4. Investor loans up: ABS investor loan data released last month reveal investors were keen to borrow, and borrow more. The number of new investor loans for properties was up 5.5% for the December quarter (and 23.6% for the year). The value of loans was up 7.9% and 31.8% for the year! First home owners stayed busy too, with loan commitments up 6.8% for the quarter and the value up 15.5%.
5. The Middle East: Foreign Minister Penny Wong summed up the conflict in the Middle East as ‘unpredictable; saying it spread mush faster and more widely than anyone expected. And the impacts will be wide too. While travellers were scrambling, motorists were queuing for fuel as prices rose before their eyes and the big question is whether interest rates will be next. The Financial Review reported economists saying “a prolonged conflict in the Middle East would push inflation higher and put more pressure on the Reserve Bank to lift interest rates.” RBA Governor Michelle Bullock said on March 3 that it was “too early to say what the economic impact will be, events are moving rapidly and there are different ways this can play out.” 
6. Cyber risk: There has been a roll call of cyber attacks reported over the last month, including one involving the medical data of 15 million French people. The unfolding war in Iran amplifies the risk according to Cyber Daily which reports US institutions are on high cyber alert, and Here in Australia, cyber security firm CyberCX said the risk of cyber attacks against entities like financial services, as well as energy, water, defence and government agencies, is “elevated”.
7. It's all about strategy: Despite affordability pressures and slowing price growth rates, it would seem the only way is up for property in Australia and the challenge for investors is strategic property choice – properties that will out-perform in the long-term.
8. Are women turning off property? The great gender debate is alive and well in property. The latest Women in Property Report from Cotality shows young Australians are dreaming less about home ownership, and especially younger women (Gen Z and Millennials). Almost half Gen Z men still thought property ownership was highly important, but only 38% of women.
9. Timely compliance reminder: It is the list where no property agents wants to feature – the NSW Name and Shame Register launched earlier this year. It publishes details of regulatory actions such as disciplinary actions, cancellation, suspension or disqualification of licences, public warnings and prosecution outcomes to help owners, renters, buyers and sellers in choosing a property agent.
10. APRA on the move: Regulatory changes to limit high debt-to-income (DTI) home lending to pre-emptively contain a build-up of housing-related vulnerabilities in the financial system took effect from 1 February. The move to contain riskier lending has a real focus on investors and is aimed at strengthening banking and household sector resilience.