2025-26 Forecast: Australian Property Prices Set to Soar – What It Means for Bundaberg Buyers and Sellers

Australia’s property market is gearing up for another boom, with forecasts predicting record-breaking prices in the 2025–26 financial year. While this might sound like music to the ears of homeowners and sellers, it’s a growing concern for first-home buyers across the country—including right here in Bundaberg.

Two major reports—Domain’s Price Forecast Report and Cotality’s Pain and Gain Report—have laid out some eye-opening predictions for the year ahead. With interest rate cuts on the horizon and demand staying strong, the stage is set for property prices to climb even higher. So what does this mean for Bundaberg's real estate market?

Let’s break it down:

National Outlook: Record Highs on the Horizon

Domain’s report projects sharp growth in Australia’s capital cities, especially in Sydney and Melbourne. Sydney’s median house price is tipped to rise by 7% to an eye-watering $1.83 million by mid-2026. Melbourne is set to follow with a 6% climb, hitting $1.1 million.

Unit prices are also on the up, expected to reach new heights across most capital cities due to affordability constraints and strong demand from first-home buyers taking advantage of government incentives.

The driver behind these increases? Falling interest rates. The Reserve Bank has already slashed the cash rate by 50 basis points this year, with the market expecting a further 80 basis points in cuts by mid-2026. More borrowing power means buyers can afford more—pushing prices higher.

Sellers Are Winning: Profits Rolling In

According to Cotality’s Pain and Gain Report, 94.9% of all property resales in the March quarter were profitable. The median resale gain? A substantial $305,000. That’s a strong return, even if it’s slightly down from the previous quarter.

Houses continue to outperform units, with 97.2% of house resales making a profit, compared to 90.1% for units. The median gain on houses was $355,000, far exceeding the $205,000 for units. Despite this, the median losses were almost identical—suggesting less risk across both markets.

What Does This Mean for Bundaberg?

Bundaberg’s market may not see million-dollar medians like Sydney, but the ripple effect is real—and growing. As affordability in the capitals tightens, more buyers are looking to regional centres like Bundy for better value, lifestyle, and growth potential. This trend is already in play and is expected to intensify.

Here’s how Bundaberg could be impacted:

• Increased Buyer Demand: As interest rates fall and southern markets become increasingly unaffordable, Bundaberg will attract more buyers—especially remote workers, retirees, and investors chasing yield and capital growth.

• Rising Prices: More competition means higher prices. Properties that were once affordable to first-home buyers may edge out of reach. Entry-level homes under $500K could become rare finds.

• Investor Activity: With rental yields already attractive in Bundaberg, lower interest rates will entice more investors, putting pressure on both the rental and buying markets.

• Sellers’ Market: If you're thinking of selling in the next 12–18 months, timing could be on your side. With buyer activity expected to rise and limited stock on the market, we may see shorter days on market and stronger sale prices.

• Units Might Catch Up: While houses currently outperform units nationwide, affordability constraints may push more buyers towards well-located units and townhouses in Bundaberg, increasing demand in this segment.

Local Perspective: Time to Act?

If you’re a Bundaberg homeowner, these national trends suggest the time to capitalise might be sooner rather than later. Rising demand, favourable lending conditions, and strong buyer sentiment are creating ideal conditions for a successful sale.

For first-home buyers, the message is clear—waiting could cost you more. With prices trending upwards, acting early, getting pre-approved, and working with a local agent who understands the market could make all the difference.

And for investors? Bundaberg continues to offer solid rental returns and capital growth potential, especially with infrastructure investment, lifestyle appeal, and migration from metro areas showing no signs of slowing.

Final Thoughts: A Market in Motion

Bundaberg’s property market is in transition—just like the rest of Australia—but we’re better positioned than most. The region offers genuine value and lifestyle appeal, making it an increasingly attractive alternative to inflated capital city prices.

But whether you're buying, selling, or investing, the next 12 months will be critical. Staying informed, acting decisively, and getting expert advice will be key to making the most of what’s shaping up to be a pivotal time in property.

Thinking of Selling or Investing in Bundaberg?
Now might be the best time to make your move. Get in touch with the team at First National Real Estate Bundaberg—we’re here to help you navigate the market with confidence.