01/06/2026
The May 2026 Cotality data paints a clear picture: the national property market is cooling, and it's cooling unevenly.
Sydney prices fell 0.9% in May. Melbourne dropped 0.8%. Estimated home sales in those two cities are down 17% and 14% respectively on a year ago. Nationally, Q1 sales are 4.1% below the five-year average.
At the same time, rents hit their highest annual growth rate in almost two years (up 5.9% nationally) with vacancy rates at record lows. Renters are now paying $204 more per week than they were five years ago.
The headwinds are real: a cash rate at 4.35%, weak consumer sentiment, Federal Budget changes weighing on investor appetite. But constrained supply is keeping a floor under values. This isn't a crash, it's a shift.
For buyers, conditions are starting to turn in your favour in some markets. For sellers, pricing and timing strategy matters more than ever. For investors, the data still tells a compelling long-term story if you're positioned correctly.
