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The real reasons property prices look set to climb again in 2026

Australia’s 2026 property market will be shaped less by predictions and more by the fundamentals, namely demand still outstripping supply, costly construction, sticky inflation and policy settings that continue to push prices higher.

House reflected in crystal ball
An assessment of a string of variables that drive property prices point to one seemingly inevitable conclusion. (Image source: Herain Kanthatham/Shutterstock.com)

Apart from hot roast meals or buckets of cold seafood, Christmas presents and songs like Dreaming of a White Christmas (don’t we all?), the other entrenched Christmas season tradition is to predict the housing market movements for the year ahead.

Rather than start with guessing where house prices are heading, I’m going to have a stab at guessing the direction of the forces that drive prices. You can then draw your own conclusions.

First, there’…

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