Apartment Outlook: Demand, Supply, Vacancy, Rents and Prices. 2H 2026 Edition

CBRE estimate that investment returns for apartments in Sydney, Melbourne and Perth are likely to outpace historic rates. In other cities, investment returns are likely to be more modest relative to history.

We see apartment values as attractive, reflecting the recent impact of changes to negative gearing, capital gains tax and high/near-peak interest rates.  Falling supply is also likely to see acceleration of rent growth. CBRE forecast apartment supply will average 54,800 pa over the next 5 years compared to 74,200pa in the previous 10 yrs. 

We expect median rents to grow by 26% between 2026-2031, across 53 precincts in Australian capital cities. By 2031, 82% of 2-bed apartments are forecast to have rents exceeding $800/week (39% exceeding $1000/week).

CBRE expect median apartment prices to grow by 20% between 2026 and 2030. We expect the strongest growth to be in 2028 and 2029.