Investors watching prices fall
A falling market is not necessarily a weakening market. Where fundamentals remain strong, softer conditions can create opportunities to negotiate.
InvestorKit research
Overvalued or Undervalued? Spring 2026
In this edition, the InvestorKit research team reassesses the relative affordability of Australia's 8 capital cities and 25 major regional markets, comparing conditions in Q1 and Q3 2026.
What You Could Learn
A clearer view of the market.
- Why have falling prices not translated into widespread affordability improvement?
- Do recent price declines signal weaker market fundamentals?
- Can affordability alone explain recent market performance?
Inside the report
8 capital cities. 25 regional markets. Q1 vs. Q3 2026.
Here's exactly what's covered in this edition, so you know whether it's worth your time before you read it.
Choose a preview below or open the cover.
Relative Affordability Calculation
How we measure each city's median house price against the affordable price for a dual-income household, at 6.75% and 4.5% interest rates.
Affordability in Spring 2026
Affordability improved slightly across 5 of the 8 capital cities. No regional city in this review remains undervalued.
Key Observations
Falling prices, market fundamentals, cycle position and rental yields: what is shaping the current cycle beyond affordability.
8 Greater Capital Cities and 25 Regional Cities
Recent price movements, housing supply and demand, economic conditions, rental yields and each market's position within the property cycle.
A closer look
A taste of what this report reveals
25 of 33
Cities where house prices declined over the past six months
Only 13
Cities where relative affordability improved despite the downturn
6.75%
The interest rate in our affordability assessment, up from 6.5% last edition
Falling property prices do not necessarily mean housing has become more affordable.
Who this is for
How these findings apply to your portfolio
There is no single measure that determines whether a market represents a good investment opportunity.
Investors comparing markets
An affordable market is not automatically a strong investment market, just as a relatively expensive market is not automatically a poor one.
Investors planning a portfolio
Borrowing capacity, cash-flow health, risk tolerance and the role of each asset should all influence your decision.
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