The NSW property market maintained generally sound fundamentals through the first half of 2026, supported by population growth, constrained supply and continued demand for quality assets.
However, higher interest rates, affordability pressures and elevated development and operating costs are increasingly weighing on investment and development activity.
Conditions vary across sectors. Industrial, office, retail, healthcare and marinas continue to demonstrate some areas of resilience, although investors are becoming increasingly selective around asset quality, pricing and returns. Residential development faces greater challenges, with affordability constraints, higher financing and construction costs, and taxation changes placing further pressure on activity.
Looking ahead, higher borrowing costs and economic uncertainty are expected to continue weighing on sentiment, with investment and development activity likely to remain selective across NSW.
Our latest NSW Market Snapshot brings together insights from our valuation experts across Healthcare and Seniors Living, Marinas, Industrial, Office, Residential Development and Retail, examining first-half conditions and the key factors shaping the remainder of 2026.
Click the link below to read the full Snapshot.
M3 Property – New South Wales Market Snapshot – October 2026
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