Summary
It’s not a secret that the property market is in a downward cycle after considering the constant pressure that both economic and geopolitical events have placed on the sector so far in 2026. We have moved from headline to headline this year starting off with interest rates having been increased 3x times, the middle east conflict causing uncertainty and a subsequent fuel shock. Now we are feeling the effects with inflation which is projected at around 5% and the recent federal budget placing restrictions on negative gearing and increasing CGT payable for investment sales.
The effects on the property market have been clear with days on market increasing and clearance rates dropping week by week. The latest SQM data indicates a clearance rate of 36.8% across Sydney, with on average 350x properties being re-advertised for sale each week for the last month. The consensus is that property prices have dropped by 10% – 12%. The amount of property listed for sale too is causing many homebuyers to pause and sit on the fence.
This period between confusion and too much choice is where opportunity lies, my view is that this is the best opportunity to upsize in recent memory. If you’re currently in an apartment, townhouse or semi-detached property the potential of upsizing into a much larger family home has never been so appetizing.
Many homeowners assume that if property prices fall, upgrading becomes harder because they may sell their current home for less than expected.
In reality, the opposite can often be true.
While the value of their existing property may soften, the property they are looking to upgrade into has often reduced by a larger dollar amount. This effectively narrows the “delta” between the two properties, meaning the additional funds required to upgrade can become significantly lower during softer market conditions.
For example, if a homeowner sells their property for $200,000 less than its peak value, but the upgraded property they were targeting has reduced by $500,000 over the same period, the overall cost to upgrade has actually improved by $300,000.
While headlines continue to focus on uncertainty, periods like this often create the best opportunities for buyers willing to think long term. For many homeowners, the gap between selling and upgrading has narrowed significantly, creating a rare window to secure a better home with less competition and more negotiating power.
Written by Dan Grantham, Director of Grantham Buyers Agents
