Northern Beaches
January 2026 Market Update: Northern Beaches Property Outlook
As we move into 2026, the start of a new year provides an ideal opportunity to take stock of the Northern Beaches property market and consider what the months ahead may bring. Following a resilient finish to 2025, local conditions continue to be shaped by steady interest rates, tight housing supply and a clear shift in buyer and tenant behaviour toward affordability and value.
The Reserve Bank’s decision to leave interest rates on hold through the final months of 2025 has provided a welcome sense of stability for buyers and property owners alike. While borrowing costs remain higher than pre-COVID levels, many households have now adjusted to the current rate environment.
Nationally, housing demand continues to outweigh available supply, particularly in established lifestyle markets. One of the most notable trends emerging into 2026 is the outperformance of lower-priced homes. New research from Cotality shows properties falling under the expanded Home Guarantee Scheme price caps recorded stronger growth than higher-priced homes throughout the December quarter.
This divergence highlights how affordability constraints, combined with government incentives and serviceability limits, are reshaping buyer demand. As a result, competition is strongest in accessible price brackets, while premium buyers remain active but increasingly selective.
On the Northern Beaches, constrained supply remains a defining feature of the market. Well-located homes, quality apartments and properties positioned within reach of first-home buyers and upgraders are attracting strong enquiry and competitive bidding.
Suburbs such as Mona Vale, Warriewood, Dee Why abd Manly continue to benefit from lifestyle-driven demand, proximity to beaches, transport and schools, and a limited pipeline of new housing. While prestige homes are still selling, the clearest momentum is occurring in the lower-to-mid price ranges, reflecting the broader affordability trend seen nationally.
Overall, the local market has entered 2026 balanced, active and resilient, supported by stable economic settings and enduring lifestyle appeal.
Sales Performance
Houses
Sales: 134
Average Sale Price: $2.73M
Average Days on Market: 35
Units
Sales: 106
Average Sale Price: $1.425M
Average Days on Market: 36
Rental Market
Houses
Properties Leased: 86
Average Days on Market: 15
Average Rental Yield: 2.8%
Units
Properties Leased: 132
Average Days on Market: 12
Average Rental Yield: 3.3%
Rental conditions remain tight, with fast leasing times and steady yields reflecting continued demand from tenants seeking coastal lifestyle locations.
The beginning of 2026 is also an ideal time for landlords to pause, reflect and ensure their investment property is protected and performing at its best.
In Raine & Horne's recent blog, “What New Year resolutions should I make as a landlord in 2026?”, we outline proactive steps that can reduce risk, improve tenant satisfaction and maximise returns. From safety and compliance checks through to maintenance planning, insurance reviews and rent assessments, small actions taken early can prevent costly issues later in the year.
We’ve also shared insights from “How to give yourself a summer rate cut”, where the team from Our Broker explains practical ways borrowers, including landlords, may be able to reduce their mortgage interest rate, even in a stable rate environment. Securing the best possible rate remains critical, particularly as residential property continues to outperform many other asset classes over the long term.
As 2026 unfolds, steady interest rates, low housing supply and ongoing lifestyle-driven demand are likely to continue supporting property values across the Northern Beaches. Homes that offer affordability, location and quality are expected to remain in strongest demand.
For homeowners, now is an excellent time to understand where your property sits in the current market. Whether you’re considering selling, refinancing, investing or simply staying informed, having an up-to-date view of your property’s value is a powerful planning tool.
If you’d like an updated, no-obligation price guide for your home, please feel free to get in touch.
We look forward to working with you throughout 2026. You can reach us on 02 9999 0800.