For many property investors, 2025 offered compelling reasons to buy.
The cash rate came down three times and property prices soared in many markets, driven by lower rates, tight housing supply and government incentives. Meanwhile, rents continued to climb across much of the country.
So, following February’s cash rate increase, what might investors expect next? Below we explore key investment property trends likely to shape the market in 2026.
Uneven price growth across markets
National home values are projected to continue to rise, but growth is unlikely to be evenly spread.
Insights from Cotality’s Decoding 2026 report show that 87% of real estate agents and financial professionals across the property and finance sectors expect dwelling values to rise over the year ahead, while only 3.5% anticipate prices to fall.
Queensland, Western Australia and South Australia are considered the most bullish markets, with strong price performance supported by high population growth and limited supply.
Looking ahead, Perth, Adelaide and Brisbane are expected to outperform Sydney and Melbourne, where price momentum softened towards the end of 2025.
Increased demand for dual-occupancy properties
Properties that can accommodate multi-generational living are expected to be in high demand throughout 2026.
As both housing prices and rents rise, more families are choosing to live together, making dual-occupancy homes particularly attractive to investors. This includes properties such as a main residence with a granny flat, duplexes, side-by-side townhouses, or homes with a detached studio or cottage that functions as a second dwelling.
These types of properties can offer investment benefits, including higher rental income, greater flexibility and reduced risk.
An uptick in regional investing
Investors seeking value outside the capital cities may have regional areas on their radar in 2026.
Regional markets often offer lower entry costs than capital cities, high rental yields, and the opportunity for investors to diversify their portfolios across geographic locations.
In terms of price growth, regional areas have remained comparatively strong, yet they’re still feeling some pressure. Flexible working arrangements and lifestyle migration has meant more people are thinking of moving to regional areas, increasing demand for housing.
In 2025, regional dwelling values rose 9.7%, compared to 8.2% across the combined capital cities. Western Australia stood out, with a 16.1% annual increase, followed by regional Queensland, which saw values rise 12.6%. Regional Victoria had the lowest growth, up 6% in 2025.
Energy efficiency a priority
Energy efficiency and climate resilience are becoming increasingly important considerations for investors.
Properties with features such as solar panels, battery storage, electric vehicle charging, quality insulation and smart energy management systems are expected to be more appealing to tenants in 2026, which in turn can enhance long-term investment appeal.
Young buyers looking to rentvest
Rentvesting is expected to gain further momentum in 2026, particularly among younger buyers navigating affordability challenges.
Rentvesting involves renting in a location that suits your lifestyle, while purchasing an investment property in a more affordable area with the potential for solid rental returns.
This approach can suit buyers who value flexibility and lifestyle, are priced out of their preferred suburb, but still want to build wealth through property ownership.
Thinking about investing?
With the right knowledge and support, property investors can navigate 2026’s property market with confidence and take advantage of emerging opportunities.
If you’re considering purchasing an investment property this year, get in touch. We can help you understand your borrowing capacity, compare lender options and structure your finance to support your long-term investment goals.
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