The Australian Property Institute regularly seeks the expert views of property valuers on the outlook for all types of property, including what the emerging drivers of property prices are.

Read the full Australian Property Market Outlook Q2 Report

In Q2 2026, the property industry has become less optimistic—or more cautious—with all key asset classes. Residential is no longer the brightest spot, with market expectations showing more resilience for industrial. Meanwhile, the agricultural outlook remains solid but the sentiment scores for office and retail have fallen below the neutral level, suggesting a challenging quarter ahead.

Report highlights

  • The API Property Market Outlook Index has declined from 7.1 in Q1 to 6.1 in Q2, as interest rate concerns are weighing on market sentiments across all key asset classes.
  • Western Australia has the strongest property market outlook (with an index score of 7.8) while New South Wales (5.2) and Victoria (5.5) are the most cautious.
  • Industrial (6.8) has the highest market sentiment score, followed by residential (6.2) and agricultural (5.7).

Share the report 

We encourage readers and industry stakeholders to explore the report and share its findings within their networks. By amplifying these expert perspectives, you help ensure informed, balanced views of Australia’s property markets reach a wider audience.