Property Market Spotlight — May 2026

May saw the property market continue its transition into a more balanced and sustainable phase, with consumer confidence improving even as buyers and investors adjusted to a higher interest-rate setting following the RBA's May decision.

Encouragingly, consumer sentiment lifted to 66.35% during the month, up from April, suggesting confidence is beginning to stabilise despite ongoing cost-of-living and interest-rate pressures. While the national weighted clearance rate eased over the month, auction activity strengthened across the two largest markets, with both Sydney and Melbourne improving month-on-month.

Underlying fundamentals remained firmly supportive. Vacancy rates continued to sit at very low levels across most major markets — below 1% in Brisbane, Adelaide, Perth and Hobart — reinforcing sustained rental demand and the ongoing supply shortage that continues to underpin well-positioned property assets. Annual value growth also remained robust across the mid-sized capitals, led by Perth, Brisbane and Adelaide.

Overall, May reflected a market recalibrating rather than retreating. With improving sentiment, critically tight rental conditions, strong population growth and limited housing supply, quality assets aligned with strong fundamentals remain well placed to continue outperforming as conditions evolve.