January 2026
Dear Client
We hope you all enjoyed the festive break and are ready for the year ahead!
The team at DB Philpott Real Estate were busy over the Christmas period. We saw 160 groups across 26 open inspections between Christmas and New Year and leased 7 properties.
PRICE GAP SHRINKS AS UNIT RENTS CONTINUE TO CLIMB
Despite slowing, rental properties remain hot assets nationwide, with units driving most growth as the price gaps between houses and apartments narrow.
Rental properties across the country have entered a period of change, with the market slowing to match renters’ affordability despite low supply and competition still strong.
According to Domain’s December Quarter Rent Report, at the national level, rental conditions have been fragmenting, with some markets still growing, while others have slowed or stabilised.
Domain’s chief of research and economics, Dr Nicola Powell, said that growth has eased and will be more selective than in the last couple of years, where most capital cities saw rapid increases.
Data showed that the gap between houses and units is widening, with Sydney house rents rising as units stall, while in Melbourne and Canberra, units lead as renters prioritise affordability, shifting city-level demand patterns.
According to Domain, Adelaide’s rental market has shifted into a deeper slowdown, with rents flat for several quarters, signalling a more structural cooling after years of outsized growth.
In the December quarter, Adelaide house rents held steady at $620 per week, marking the first time in six years that rental prices flattened for two straight quarters.
Adelaide unit rents rose slightly by 1.0 per cent or $5 to a record $525 per week, indicating more controlled growth.
Across the quarter, units continued to outperform houses, with the price gap shrinking to $95, the narrowest since 201, as renters increasingly traded space for affordability.
Across the country, Powell said more renters are choosing units, driving stronger rent growth than houses in Melbourne, Brisbane, Adelaide, Canberra, and Darwin.
“Rents are still at record highs, but household budgets are under pressure. In many areas, renters now need an income of more than $100,000 to rent comfortably.
“Conditions still favour landlords, with very low vacancy rates across all capital cities. However, increased investor activity and ongoing support for first-home buyers could help ease the shortage of rental homes over time, with the market starting to rebalance in 2026,” she concluded.
Via realestatebusiness.com.au (16/1/26)
WHY CAUTION, NOT SPEED, WILL DEFINE PROPERTY SUCESS IN 2026
According to PRD chief economist Dr Diaswati Mardiasmo, in 2026, investors will have to adapt their portfolios by balancing risk management with evaluated growth opportunities amid uncertain interest rates, moderating inflation, and uneven market performance.
She said that investors might have to be more cautious over the next 12 months, combining some safer investment properties with more high risks purchase.
“Investors should consider diversifying their portfolios and investing in lower-risk real estate opportunities, which will provide a “safety net” if larger investments fail due to economic and market conditions,” Mardiasmo told SPI.
Over the next 12 months, Mardiasmo said dwelling prices will once again be tied to interest rates, inflation, the global economy, and the first home buyer schemes.
“While inflation pressures could keep interest rates stable, a cash rate increase if inflation rises could slightly dampen demand but encourage buyers to act under safer conditions,” she said.
2026 MARKET TRENDS
Over the next 12 months, Mardiasmo said dwelling prices will once again be tied to interest rates, inflation, the global economy, and the first home buyer schemes.
“While inflation pressures could keep interest rates stable, a cash rate increase if inflation rises could slightly dampen demand but encourage buyers to act under safer conditions,” she said.
Following the continuous increase in house prices and the low supply, Mardiasmo said that time buyers will likely turn to higher-density living, especially in cities and densely populated areas.
“In the coming years, units, apartments, and townhouses are expected to see the highest demand due to growing affordability issues with houses.”
On the other side, she said that investors will target detached houses with four to five or more bedrooms, which offer higher yields and soaring rents.
Mardiasmo said that the demand for numerous bedroom houses will also lead to a surge in multi-generational houses.
“Multi-generational houses are also becoming more popular due to their ability to keep up to date with changes in individual living standards.”
“Additionally, it combats the rising housing costs as the house will be inherited by the next of kin in the house.”
She said that to attract and cater to multi-generational families, investors will have to target areas with surrounding schools and universities, proximity to medical facilities, public transport, and low crime rates.
Via smartpropertyinvestment.com.au (13/1/26)
ONWER ZOOM INFORMATION SESSION
We will be hosting the next Zoom Information Session on Wednesday 4th February @ 6pm.
Vinko Juric from Bluestone Buyers Agents will be providing his outlook on the South Australian Housing Market for 2026 and sharing any hot tips he might have.
We will circulate a Zoom link closer to the time.
Wishing you a Happy New Year & Thank you for your ongoing support!
Regards David, Benjamin & the Team at DB Philpott Real Estate
