Investment Report – Ocotber 2026

Australia’s major property markets are currently navigating a complex period as market price corrections start to collide with rental tightness and rising cash rates. The latest Follio National Investment Report, prepared by Chief Economist Dr Ryan Brierty, provides an in-depth look at investor activity, valuation shifts and what is driving macroeconomics across Perth, Melbourne, Sydney, Brisbane and Adelaide.

Capital Market Downturn Eases Across Major Australian Cities

Australia’s housing market is still going through a downturn broadly across the five main capital cities, but data in September indicates that the pace of decline has begun to ease. Annual dwelling price growth in Perth slowed to 10 per cent, Brisbane to 5 per cent, and Adelaide to 6.5 per cent. Sydney, meanwhile, has dropped below Melbourne on a yearly basis at -7 per cent compared to Melbourne at -6.2 per cent.

Melbourne Emerges as the Most Affordable Capital City

Price corrections in 2026 have widened the gap between capital city entry points, creating disparities for prospective buyers. As of September 2026, Sydney maintained the highest estimated dwelling price at $1.18 million, followed by Brisbane ($1.04 million), Perth at $956k, and Adelaide at $920k. Melbourne, by contrast, has emerged as the lowest-priced capital city at $769k. This means Melbourne’s average entry cost is significantly lower than Sydney (almost $400k), $187k lower than Perth, and $270k below Brisbane, thus lowering the initial deposit required.

Rental Tightness Is Driving Gross Yield Gains

Despite property prices falling nationally, the rental market remains tight, resulting in gross rental yields having an upward trajectory. Vacancy rates in August held firm at 1.7 per cent in Sydney and 1.8 per cent in Melbourne, while they remained below 1 per cent in Brisbane, Adelaide and Perth. Rents themselves have remained stable, with rent in Sydney at $914, Melbourne at $694 and Perth $800 a week.

Download the Full September 2026 Investment Report

For a full breakdown of regional growth cycles, investor lending indicators, and economic forecasts across Australia’s capital cities, download the complete Follio National Investment Report (Oct 2026).