Understanding the Forces Shaping the Property Market in 2026

As 2025 comes to a close, property headlines are once again filling with bold predictions about what 2026 will bring. But rather than playing the forecasting game, this episode takes a more grounded approach — examining the forces already in motion and how they’re likely to shape buyer, seller, and investor behaviour in the year ahead. Chris Bates and Veronica Morgan unpack what’s really driving the market right now: persistently high interest rates, fast-rising lower-quartile prices, tight rental conditions, weak construction pipelines, and a supply side that simply isn’t recovering. They explore why listings remain constrained, how first home buyer incentives and investor lending are colliding in the same price brackets, and why borrowing capacity — not confidence — is doing most of the heavy lifting. The conversation also digs into buyer fatigue versus genuine market softening, the growing influence of global uncertainty on local decision-making, and why some cities and sub-markets may actually accelerate rather than cool. Along the way, they challenge the idea that 2026 will somehow be “easier,” especially for buyers waiting for perfect clarity before acting. If you’re considering buying, selling, upgrading, or investing in the next 12–24 months, this episode offers a clear-eyed framework for thinking strategically — without hype, predictions, or false reassurance. Episode Highlights 00:00 – Introduction: Current State of the Property Market 01:04 – Factors Shaping the Market in 2026 01:48 – Interest Rates and Market Predictions 03:59 – Regional Market Variations 05:58 – Investor and First Home Buyer Dynamics 16:59 – Impact of Development and Zoning Changes 22:54 – Work from Home and Regional Market Trends 25:15 – Helping You Make Better Property Decisions 26:07 – Introduction to Property Moves and Finance 26:22 – Regional Markets Post-COVID 27:14 – Current Market Sentiment and Interest Rates 28:52 – Generational Wealth and Property Ownership 32:00 – Bank Lending and Credit Growth 36:51 – Auction vs. Private Treaty Markets 43:00 – Renovation Trends and Challenges 45:35 – Long-Term Property Investment Strategies 49:48 – Conclusion and Future Episodes About the Hosts Chris Bates is a mortgage broker and co-founder of Alcove, working with clients across Australia to help them navigate complex property and lending decisions. Known for his data-driven approach, Chris specialises in long-term strategy, lending structures, and helping buyers avoid costly financial mistakes. Veronica Morgan is a buyer’s agent and property strategist with nearly two decades of experience advising owner-occupiers and investors. With a background in research, data analysis, and on-the-ground buying, Veronica is widely respected for cutting through market noise and focusing on fundamentals, risk, and long-term outcomes. Together, they bring a practical, evidence-based lens to Australia’s property market — challenging assumptions and unpacking what actually matters. Resources Visit our website: If you have any questions or would like to be featured on our show, contact us at: The Elephant in the Room Property Podcast - questions@theelephantintheroom.com.au Looking for a Sydney Buyers Agent? Work with Veronica: Looking for a Mortgage Broker? alcove.com.au Work with Chris: chrisbates@alcove.com.au Enjoyed the podcast? Don't miss out on what's yet to come! Hit that subscription button, spread the word, and join us for more insightful discussions in real estate. Your journey starts now!

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Understanding the Forces Shaping the Property Market in 2026 is an episode from The Elephant In The Room Property Podcast | Inside Australian Real Estate by Chris Bates.

This episode is 50:45 long.

This episode was published on Dec 28, 2025.

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