PPG Realty Property Newsletter – September 2026
Spring is usually Sydney's busiest selling season. This year buyers are setting more of the terms. Values are still falling, interest rates went up again last month, and the rental market is finally easing after several tight years. Here is what the latest data shows and what it means for you.
Sydney: values keep sliding
Sydney dwelling values fell 1.4% in September, according to Cotality's Home Value Index. That takes the city 8.6% below its February 2026 peak and 7.0% lower over the past 12 months (Cotality, 1 Oct 2026). Cotality says Sydney is leading the national correction, and that the fall is slightly deeper than at the same stage of the 2022–23 downturn.
Fewer homes are changing hands too. Cotality estimates Sydney sales volumes are down 26.5% on a year ago (Cotality via PropertyUpdate). With fewer buyers, campaigns are taking longer and vendors have less room on price.
Auctions: clearance rates near 50%
Cotality's preliminary figures for the weekend of 10–11 October (as at 1:04pm Sunday) put Sydney's clearance rate at 52.9% from 431 results. Across the combined capitals the rate was 48.8%, the second weekend in a row below 50%. Melbourne came in at 54.8%, Brisbane at 21.4% and Perth at 28.6% (Capital Brief, reporting Cotality, 11 Oct 2026). Sydney's 52.9% was its lowest preliminary result in 10 weeks. About 33.9% fewer homes went to auction than in the same week last year (Australian Conveyancer, reporting Cotality). Another weekly series, based on Saturday results, shows Sydney at 52.8%, against 76.4% in the same week of 2025 (My Housing Market, 10 Oct 2026). Preliminary rates usually come down once all results are in. Cotality publishes final figures each Thursday.
Rents: Sydney is the first capital to turn
Cotality's Quarterly Rental Review shows Sydney dwelling rents fell 0.4% in the September quarter. That was the only fall among the capitals and Sydney's first quarterly drop since December 2024. Sydney's vacancy rate rose to 2.5%, up from 1.8% a year earlier. Even so, the median rent of $843 a week keeps Sydney the most expensive rental capital (Cotality, Oct 2026).
SQM Research shows a similar trend on its own measure. For August, Sydney's vacancy rate was 1.7% (up from 1.4% a year earlier), with 26% more vacant listings than in August 2025. Combined advertised rents eased 0.6% over the month (SQM Research, 15 Sep 2026). The two providers measure vacancies differently, so their numbers won't match, but both show the same direction: more rentals on the market and less pressure on rents.
Australia-wide
- Interest rates: On 29 September the Reserve Bank raised the cash rate by 25 basis points to 4.60%. It was the third increase this year, and the Board said it could raise rates again if needed (RBA statement). The next decision is due on 3 November 2026.
- National values: Cotality's national index fell 1.1% in September. That was the sixth monthly fall in a row, leaving values 5.2% below the March 2026 peak and flat (0.0%) over 12 months. Brisbane had the sharpest fall in September (-1.5%). Darwin was the only capital to rise (+0.4%), and Perth (+10.1%) and Darwin (+11.9%) still lead on annual growth (Cotality).
- National rents: Rents rose just 0.5% in the September quarter, down from 1.6% in the June quarter. The national vacancy rate climbed to 2.1%, its highest since January 2025 (Cotality).
Other states: Melbourne, Brisbane and Perth
Values as at 30 September 2026 (Cotality); rents for the September quarter (Cotality).
- Melbourne / Victoria: Values fell 0.7% in September and are down 6.2% over the year. That is a milder monthly fall than the mid-sized capitals. Victoria's 2026–27 Budget left land tax rates, thresholds and stamp duty unchanged, and extended the off-the-plan duty concession to contracts signed before 21 April 2027 (HSF Kramer). Victorian Labor has promised to gradually restore the land tax threshold from $50,000 to $300,000 site value if re-elected. That is an election promise, not law (Victorian Labor).
- Brisbane / Queensland: Brisbane had the sharpest fall of any capital in September (-1.5%) but is still up 5.9% over the year. Rents rose 1.3% in the quarter. Since 1 May 2025, first home buyers purchasing a new home or vacant land have had full transfer duty relief, subject to conditions (QLD explanatory note).
- Perth / WA: Values fell more than 1% in September but are up 10.1% over the year. Perth's median rent is $798 a week, second only to Sydney. For transactions from 7 May 2026, WA lifted the first home buyer duty exemption for established homes from $500,000 to $600,000, with concessions up to $800,000 (HSF Kramer; WA Government).
What this means for you in Sydney
Landlords: More vacancies mean tenants have more choice. Price your property realistically from the first listing, present it well, and treat keeping a good tenant as worth more than a small rent increase. Higher rates are also adding to holding costs, so this is a good time to review your loan and your budget. We can run a free rental appraisal against current comparable listings.
Buyers: Slower conditions mean more choice, longer campaigns and more room to negotiate, especially on properties that have been on the market for a while. Rates are higher and could rise again, so get your borrowing capacity re-checked before you start making offers.
Sellers: Buyers are price-sensitive, so a realistic price and strong presentation matter more than they did a year ago. Market-wide figures are only a backdrop, though. Results vary a lot by suburb and property type. Talk to us for a pricing view based on recent local sales.
Thinking about buying, selling or leasing? Contact the PPG Realty team for a no-obligation chat.
Sources: Cotality Home Value Index (1 Oct 2026) and Quarterly Rental Review (Oct 2026); SQM Research national vacancy release (15 Sep 2026); Cotality preliminary auction results (11 Oct 2026); state budget and legislation sources linked above; Reserve Bank of Australia Monetary Policy Board statement (29 Sep 2026). Figures are city- or nation-wide indices, not suburb valuations. This article is general information only and is not financial advice.