11 Nov
As we mark Remembrance Day, we pause to honour those who served and sacrificed and reflect on the importance of community and looking out for one another.
Against a backdrop of growing economic uncertainty, Australia’s property market continues to face significant challenges. Five interest rate rises this year have taken rates to their highest level in 18 years, with successive 0.25 percentage point increases eroding confidence among households, businesses and property buyers.
The outlook remains challenging. Unemployment is at 4.7% and forecast to rise above 5%, while inflation is expected to stay above 3%.
The latest REIP data, provided by our partner Forms Live, reflects this uncertainty. National buyer numbers fell 14% in October, while properties are taking longer to sell. Median days on market reached 42 in September, up from 29 a year earlier, as stock accumulates and buyers take advantage of reduced competition.
Queensland has recorded a 6.1% fall in property prices over the past three months, while WA and SA are also softening. Although the pace of decline is moderating in Victoria and NSW, Sydney has experienced sharp price falls.
For agents, realistic vendor conversations are essential. With buyers taking longer to make decisions and higher-priced properties experiencing greater discounting, sellers need to understand that waiting another three to six months may not deliver a better outcome.
REIP CEO Sadhana Smiles believes restoring economic confidence requires more than monetary policy alone. Stronger fiscal discipline, restraint in government spending and alternative measures, including taxing gas exports, warrant serious consideration rather than continuing to rely so heavily on interest rates.
Cameron Kusher recently joined Sadhana on the Behind the Numbers podcast, where they discussed the economic outlook, changing property conditions and what agents should be watching as the market adjusts.
You can listen to the podcast here.
Victorian rental market: Affordability pressures and tightening supply
The latest REIP rental data, provided by Forms Live, reveals growing affordability pressures across Victoria, with rent arrears accounting for 33.7% of properties issued a notice to vacate in the 12 months to October 2026, up from 28.3% in the previous year. While arrears eased in October, the annual increase highlights the financial challenges facing tenants.
At the same time, more landlords are choosing to sell or reclaim their rental properties. Half of all properties issued notices to vacate over the past 12 months were linked to landlords selling, moving in, renovating or demolishing, up from 40.3% a year earlier.
With interest rates continuing to rise, higher borrowing costs may be contributing to these decisions. Early REIP data also reveals a median of just 91 days between a lease renewal and selling notice, so landlords may raise the rent and still need to sell soon after.
For tenants, finding another property can mean paying considerably more. New REIP advertised rental data shows median asking rents of $570 per week, compared with $530 for renewed leases, a difference of $40 per week or $2,080 annually. For units, the gap is even greater at $67 per week.
These findings highlight the competing pressures facing Victoria’s rental market. Tenants are struggling with affordability, while investors are weighing rising holding costs against the viability of retaining their properties. As more rental properties potentially leave the market, the challenge of maintaining supply and housing affordability becomes increasingly complex.
Leading through a changing property market
Across industries, business owners are considering how to maintain operations and serve clients as conditions change. In real estate, that can mean making difficult decisions about costs and staffing when sales slow or settlements take longer than expected.
Some agencies are considering downsizing. For others, reducing staff costs may be necessary to keep the doors open. The options available depend on the agency’s financial position and what’s happening in its local market.
For some businesses, revisiting the forecast can help clarify those options. If the assumptions behind the original budget have changed, an updated view of revenue and cash flow can show what the business can afford and whether the targets set for the team still make sense. Some agencies may have room to reduce discretionary spending or change how work is organised. Others may need to make more substantial changes.
There’s also a commercial value in retaining experience. In real estate, local knowledge and client relationships take years to build. When an experienced team member leaves, the impact can be felt in who picks up their work, how clients are looked after and how quickly the agency can respond when activity picks up. The time and cost of recruiting and rebuilding a team form part of that financial picture, alongside the immediate savings.
Where roles do change, people want to know what it means for them. That includes the people directly affected and those taking on different responsibilities. Clear, respectful communication can give both groups some certainty at a difficult time.
Each agency will weigh these decisions differently. The trade-off is between what the business needs to stay viable today and the experience and client relationships it will rely on through the next phase of the property cycle.
As the industry navigates these challenges, opportunities to connect, exchange ideas and learn from one another remain valuable. The upcoming Blac_Salt real estate conference, taking place at Crown Melbourne on 24 November 2026, offers an opportunity to do that, with REIP members receiving 10% off tickets using code BS_10.
Real Estate Industry Partners (REIP)
DATA SOURCE: REIP market and rental data is provided by our partner Forms Live.
