PPG Realty Property Newsletter – End of month October 2026
October has been another month where buyers set the pace. Sydney values have kept easing, the city's auction clearance rate has slipped below 50% for the first time in 12 weeks, and all eyes are now on the Reserve Bank's Melbourne Cup Day meeting. The rental market is still sending mixed signals: house rents are rising while unit rents ease. Here is what the latest data shows and what it means for you.
Sydney: values keep sliding through October
Cotality's official October index isn't out yet. It's due in early November. In the meantime, Cotality's daily Home Value Index as at 27 October 2026 shows Sydney dwelling values down 1.4% over the past 28 days, down 4.7% over three months and down 9.0% over the past 12 months (Cotality daily index, as at 27 Oct 2026). That follows a 1.4% fall in September, which left Sydney 8.6% below its February 2026 peak (Cotality, 1 Oct 2026).
Domain's September-quarter House Price Report, released on 22 October, tells the same story. Sydney's median house price fell 4.7% ($82,420) to $1,661,167 over the quarter, taking it back to December 2024 levels. The median unit price fell 3.0% to $820,890, Sydney's steepest quarterly fall for units in four years (Domain, 22 Oct 2026). Even so, Domain notes that nearly 400 Sydney house or unit markets still recorded at least a small annual rise, so results really do vary suburb by suburb.
Auctions: Sydney dips below 50%
Cotality's preliminary results for the week ending 25 October put Sydney's clearance rate at 48.2% from 631 auctions. That was the city's first preliminary result under 50% in 12 weeks, and only just above June's recent low of 47.3%. Sydney's auction numbers were 34.1% lower than a year earlier (Australian Conveyancer, reporting Cotality, 27 Oct 2026).
Across the combined capitals, 48.4% of 1,882 auctions cleared, with volumes 41.8% lower than a year ago. Melbourne cleared 54.8% of 831 auctions, Brisbane just 25.2% of 200, Adelaide 42.5% and Canberra 52.1%. Half the reported results from Perth's 19 auctions were successful (Australian Broker, reporting Cotality, 26 Oct 2026).
A year ago the market was far busier. In the same week of 2025, the combined capitals cleared a preliminary 70.5% from 3,253 auctions, Sydney cleared 68.2% from 959, Melbourne 71.8% and Brisbane 73.5% (Cotality, week ending 26 Oct 2025).
Preliminary rates usually come down once all results are in. The latest final figures, for the week ending 18 October, were 47.6% across the combined capitals and 50.4% in Sydney (570 auctions). Melbourne finished at 51.7%, Brisbane at 29.6% and Perth at 38.5% from only 13 auctions (Aussie, reporting Cotality final results, 23 Oct 2026). Cotality's final figures for the 25 October weekend are due on Thursday 29 October.
Rents: houses up, units easing
SQM Research's weekly asking rents for the week ending 20 October show Sydney's combined asking rent at $916.23 a week, up 0.4% over the past month and 4.1% over the year. The split between houses and units is widening. House rents rose 1.8% over the month to $1,163.14, but unit rents fell 1.0% to $747.59 (SQM Research weekly rents, week ending 20 Oct 2026).
SQM's latest monthly vacancy figures are for September, released on 13 October. They put Sydney's vacancy rate at 1.8%, up from 1.7% in August and 1.3% a year earlier, with 13,331 vacant rentals (SQM Research, 13 Oct 2026). SQM's October vacancy figures are due in mid-November. On Cotality's separate measure, Sydney rents fell 0.4% in the September quarter and vacancy rose to 2.5% (Cotality, 9 Oct 2026). The two providers measure vacancies differently, so their numbers won't match, but both point the same way: more choice for tenants, especially in units.
Australia-wide
- Interest rates: The cash rate is 4.60%. The Reserve Bank raised it by 25 basis points on 29 September, its fourth increase this year after rises in February, March and May (RBA statement, 29 Sep 2026; RBA, Andrew Hauser, 21 Oct 2026). On 21 October, Deputy Governor Andrew Hauser said "the inflation outlook looks materially worse than we projected in the August report", but that he didn't know for sure what the Board would decide. That day, markets put the chance of a rise to 4.85% at around 40% (Reuters via Investing.com, 21 Oct 2026). The next decision is due on Tuesday 3 November 2026.
- Inflation: Inflation picked up again in September. ABS figures released on 28 October show annual CPI inflation rose to 4.3% in the 12 months to September, up from 4.0% in August, and trimmed mean inflation, the RBA's preferred underlying measure, rose to 3.6%, up from a revised 3.5% (ABS, 28 Oct 2026). Sydney's annual inflation was also 4.3%, with fuel (up 23.6% over the year) the biggest driver nationally and rents up 3.6%. Both measures remain above the RBA's 2 to 3% target ahead of its 3 November decision.
- National values: Cotality's daily index as at 27 October has the five-capital aggregate down 1.3% over 28 days, 4.2% over three months and 4.2% over the year (Cotality daily index). The latest full national result is for September: down 1.1%, the sixth monthly fall in a row (Cotality, 1 Oct 2026). Domain's September-quarter report found house prices fell in all eight capitals in the same quarter for the first time in 15 years (ABC News, 22 Oct 2026).
- National rents: SQM's national vacancy rate rose to 1.4% in September (from 1.3% in August and 1.2% a year earlier). The national combined asking rent was $704.76 a week, 7.6% higher than a year ago, but unit rents fell in seven of the eight capitals over the month (SQM Research, 13 Oct 2026).
Other states: Melbourne, Brisbane and Perth
Values from Cotality's daily index as at 27 October 2026 (Cotality); rents and vacancy from SQM Research for September 2026 (SQM).
- Melbourne / Victoria: Values are down 0.7% over 28 days and 7.5% over the year, which is the mildest recent fall of the big capitals. The vacancy rate is 1.9% and combined asking rents eased 0.7% in September to $691.97 a week. The big change is Victoria's new underquoting laws. For auctions and fixed-date sales from 16 October 2026, agents must publish the seller's reserve as a single dollar figure at least seven days beforehand, or the sale can't go ahead. A new Property Price Statement has also replaced the Statement of Information (Consumer Affairs Victoria). Melbourne auction volumes on 25 October were 54.7% lower than a year earlier. Cotality said this was partly because of softer conditions and partly because vendors are adjusting to the new rules (Australian Conveyancer). Ahead of the 28 November state election, Labor and the Coalition have both promised to lift the land tax-free threshold back to $300,000, at different speeds. These are election promises, not law (Kalkine, 5 Oct 2026).
- Brisbane / Queensland: Values are down 1.5% over 28 days and 4.5% over three months, but still 2.1% higher over the year (Brisbane including Gold Coast). Brisbane's clearance rate was the lowest of the capitals at 25.2%. Rentals remain tight: vacancy is 0.9% and combined asking rents are $754.49 a week, 7.2% higher than a year ago. On 13 October, Parliament passed the Home Ownership and Other Legislation Amendment Bill 2026. Among other things, it lets first home buyers keep the vacant-land duty concession even if there's an existing shed on the land, and stops buyers of new homes losing first-home benefits because of how the property passed between developer and builder (Queensland Government, 13 Oct 2026).
- Perth / WA: Values are down 1.5% over 28 days and 4.7% over three months, though still 5.8% higher over the year. Perth remains one of the tightest rental markets, with vacancy at 0.6% and combined asking rents of $795.82 a week (up 5.0% over the year). On 23 October, RevenueWA confirmed that the May 2026 first home buyer changes have now been applied. First home buyers pay no duty on homes up to $600,000, with concessions up to $800,000, and on vacant land up to $450,000 (concessions to $550,000). Eligible buyers assessed under the old rules since 7 May can apply for a reassessment and refund (WA Government, 23 Oct 2026).
What this means for you in Sydney
Landlords: Tenants have more choice, especially in the unit market, where asking rents are now falling month to month. Price your property realistically from day one, present it well, and remember that keeping a good tenant is usually worth more than a small rent increase. With a possible rate rise on 3 November, now is a good time to review your loan and holding costs. We can run a free rental appraisal against current comparable listings.
Buyers: Conditions favour you. Clearance rates are below 50%, campaigns are running longer, and there's more room to negotiate, particularly on properties that pass in or have been on the market for a while. The 3 November decision is a genuine risk, though, so get your borrowing capacity checked at a higher rate before you bid.
Sellers: With fewer than half of Sydney auctions clearing, a realistic reserve based on recent comparable sales matters more than ever. Strong presentation and flexible terms can make the difference. City-wide figures are only a backdrop, and 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 renting? Contact the PPG Realty team for a no-obligation chat.
Sources: Cotality daily Home Value Index (as at 27 Oct 2026), Home Value Index (1 Oct 2026) and Quarterly Rental Review (9 Oct 2026); Domain House Price Report, September quarter (22 Oct 2026); Cotality preliminary auction results (week ending 25 Oct 2026, as reported), final results (week ending 18 Oct 2026, as reported) and Property Market Indicator Summary (week ending 26 Oct 2025); SQM Research weekly rents (week ending 20 Oct 2026) and national vacancy release (13 Oct 2026); Reserve Bank of Australia Monetary Policy Board statement (29 Sep 2026) and Deputy Governor remarks (21 Oct 2026); ABS Consumer Price Index, September 2026 (released 28 Oct 2026); state government and other sources linked above. Cotality's October Home Value Index and PropTrack's October index had not been released at the time of writing. Figures are city- or nation-wide indices, not suburb valuations. This article is general information only and is not financial advice.
Writer: Rami Abdallah, PPG Realty