New vs Established Investment Property in 2026: Why the Tax Rules Now Favour New Builds
From 1 July 2027, two investors paying the same price for the same rent can face very different tax bills, simply because one dwelling is new.
Spring Surge: Australian Property Listings Climb Sharply in October as Investor Confidence Grows
With national listings up nearly 11% in a single month, the spring property market is showing renewed vitality offering investors fresh opportunities across key capitals.
The Spring Market Heats Up
Australia’s residential property market saw a robust revival in October 2025, with national listings jumping 10.9% to reach 252,557 dwellings
The seasonal surge signals returning vendor confidence and renewed buyer activity, particularly in Sydney and Melbourne, which recorded month-on-month gains of 13.2% and 15.4%, respectively.
For investors, this uptick means greater choice and the potential to secure properties before competition intensifies further into summer. Despite this month’s strong growth, listings remain slightly below last year’s levels, suggesting that demand is still absorbing much of the new stock coming online.
New Listings Lead the Charge
Fresh listings properties listed for under 30 days soared by 18.2% nationwide, reaching 87,986 new properties
Melbourne led the surge with an impressive 23.7% lift, followed closely by Adelaide (+33.5%) and Sydney (+17.2%).
The sharp rise in new listings reflects not only seasonal momentum but also sellers’ growing confidence that buyers are active and ready to move. In markets like Brisbane and Perth, where new listings dipped slightly year-on-year, scarcity continues to support price resilience making them particularly appealing to investors seeking long-term capital growth.
This renewed flow of properties provides an important window for investors: competition between sellers often leads to more negotiable prices and flexible settlement terms.
Old Listings and Market Health
Older listings (180+ days on market) increased just 1.0% month-on-month, now totalling 72,364 dwellings
The modest rise suggests that while new listings are abundant, buyer demand remains sufficiently strong to keep overall stock turnover healthy.
In particular, Adelaide saw a 17.8% drop in older stock, confirming solid absorption and competitive conditions. Conversely, Darwin’s old listings plunged over 50% year-on-year, a reflection of limited available stock and heightened volatility in smaller markets.
Overall, the balance between new and old listings points to an active, well-functioning marketplace conditions that tend to favour strategic investors with access to accurate, timely data.
Distressed Listings Decline
One of the most telling indicators of market stability is the number of distressed listings properties sold under financial duress. Nationally, distressed listings were steady in October but remain nearly 30% lower than a year ago
Western Australia and Queensland recorded the largest annual declines, down 50.1% and 32.8%, respectively. This suggests that households, despite enduring higher interest rates, are generally managing their repayments effectively. For investors, this trend reflects a market underpinned by resilience rather than desperation—reducing the likelihood of large-scale price drops and supporting long-term portfolio confidence.
Asking Prices Continue to Rise
According to SQM Research’s Weekly Asking Prices Index, national asking prices rose 1.9% for houses and 1.4% for units in October
The combined dwelling growth of 9.7% year-on-year shows the market’s enduring strength.
Brisbane continues to lead annual price gains at +12.0%, while Perth follows closely at +10.2%. Even Sydney and Melbourne, markets that had experienced softer conditions earlier in the year, now show stable or positive growth trajectories.
For property investors, this upward trend reinforces the value of diversification across capital cities. Markets such as Perth and Adelaide offer affordability and momentum, while Sydney and Melbourne present opportunities for capital appreciation as consumer sentiment improves.
A Balanced Yet Buoyant Market
Australia’s spring property season has delivered a strong rebound in listings, driven by renewed confidence among sellers and consistent buyer demand. While total listings remain fractionally below 2024 levels, the combination of fresh supply, steady prices, and minimal distressed sales indicates a balanced yet active market.
For property investors, the message is clear: conditions are aligning for strategic acquisitions before 2026 brings further competition and potential rate adjustments. Whether seeking capital growth in Perth and Brisbane or stable yields in Adelaide and Canberra, now is the time to explore Australia’s revitalised property landscape.
Visit our website to view all our available investment properties www.ausinvestmentproperties.com.au
Source: SQM Research, National Listings Lift Sharply in October, November 2025
From 1 July 2027, two investors paying the same price for the same rent can face very different tax bills, simply because one dwelling is new.
TL;DR The May 2026 Federal Budget abolished negative gearing for established properties purchased after 12 May 2026 and will replace the 50 per cent CGT discount with indexation from 1 July 2027. New builds are exempt and keep both tax benefits. With ABS data showing rents still rising and housing the biggest driver of inflation, high yield new builds such as co-living, dual occupancy and duplex homes now offer stronger cash flow and better tax treatment.
TL;DR Lone-person households are Australia’s fastest growing household type and make up roughly a quarter of the nation’s three million renting households, yet most rental stock is built for families. Purpose-built co-living, rooming house and studio accommodation adds multiple self-contained dwellings to a single block, delivers strong yields and targets a tenant pool that is growing every year. The investors who win in this space will be the ones who prioritise quality, compliance and location.
This report provides a quarterly review of pricing across current market listings analysed by Aus Investment Properties. It is designed as an investor-grade market snapshot of build pricing, land pricing and package pricing across residential investment product types and key states. Unless otherwise stated, all standard residential analysis excludes Specialist Disability Accommodation (SDA), which is reported separately because specification, compliance settings and package structure differ materially from non-SDA stock.
Higher borrowing costs are changing the market, but smart Australian investors can still find strong opportunities TL;DR: The latest RBA rate rise means property investors in Australia need to be more selective in 2026. Higher interest rates can reduce borrowing power and place more pressure on cash flow, but they do not eliminate good investment opportunities. Investors who focus on strong locations, realistic numbers and sustainable rental demand can still make smart property decisions in the current market.
TL;DR: APRA has introduced a new lending limit that affects Australian property investors. From 1 February 2026, lenders regulated by APRA can fund only up to 20 per cent of new investment loans where the borrower has a debt-to-income ratio of six or more. This is not a blanket ban on investor lending, but it may make it harder for highly leveraged investors to borrow at the upper end of their capacity. APRA has also kept the mortgage serviceability buffer at 3 percentage points.
Capital Growth 12 months, measures the increase in a property’s value over the previous 12 months, indicating how much the investment has appreciated in that timeframe.
Capital Growth 10-year annualised, reflects the average annual increase in a property’s value over the last decade, smoothing out short-term fluctuations to show long-term appreciation trends.
Vacancy Rate, indicates the percentage of properties that are currently unoccupied in that postcode, It’s a key indicator for investors to assess the rental demand.