Australia’s property market is shifting quickly in 2026 as governments and regulators roll out new rules that could change the way you buy, build, finance and rent homes this year. From tighter lending standards to changes in grants and rental rights, here’s what’s on the horizon.
Lenders are tightening who they’ll lend to and how much they’ll allow you to borrow. New caps on high debt-to-income loans take effect in 2026 to reduce risky borrowing and slow inflation pressures in the property market. This means if your projected loan is more than six times your income, lenders will face limits in approving it.
Governments are updating planning rules and cutting red tape to speed up construction of new homes. These changes aim to ease Australia’s housing supply crunch and could mean quicker approvals for developments and smaller delays at the council level.
Victoria is planning a big shift in how auctions work. Agents will soon need to publish reserve prices earlier so buyers have more transparency before bidding. The aim is to tackle underquoting and make auctions fairer for all buyers.
Some incentives that have helped buyers will be winding up in 2026. That includes Queensland’s $30,000 First Home Owner Grant for new builds and stamp duty breaks on off-the-plan properties in Victoria. A few programs may be extended but buyers should prepare for higher upfront costs if they miss new deadlines.
Renters will benefit from stronger protections this year. Victorian renters will soon be able to transfer rental bonds between properties, so they won’t have to save another bond deposit when moving. In Tasmania, pet rights protections are improving under newer rental laws.
Across states there are a range of tenancy law changes continuing to roll out, such as standardised rental applications and bans on certain third-party fees. These reforms are designed to give tenants more fairness and transparency across their renting experience.
There’s growing talk that the federal government could revisit the Capital Gains Tax discount for property investors in the upcoming budget. Nothing has been confirmed yet, but any change could impact investor behaviour, rental supply and housing prices.
Even with new lending rules and incentives, median home prices are continuing to climb. That puts extra pressure on buyers’ borrowing power and highlights the ongoing affordability challenge in 2026.
Renters are still feeling the squeeze as rents grow faster than wages nationally. Vacancy rates remain low in many areas and competition for quality rentals shows no sign of easing. Tenants need to plan for tighter markets and higher costs throughout the year.
In the now famous The Simpsons episode in 1996, Helen Lovejoy quoted: “Won’t somebody please think of the children”. That statement has found itself into popular culture over the last few decades and was wittily mused by Simpsons lovers as house prices sharply rose post Covid-19. But over the last … Read more