Buyer leverage is returning — but not everywhere

The national property market is becoming harder to describe with a single headline. On one hand, some of Australia's largest markets are clearly losing momentum. [Cotality's latest Home Value Index](https://www.cotality.com/au/news-research/reports/home-value-index) showed national dwelling values were flat in May, with Sydney down 0.9% and Melbourne down 0.8% over the month. [Domain has also reported](https://www.domain.com.au/research/) that Sydney property listings have reached a 17-year high, while Melbourne listings have reached a 12-year high. That matters because buyer leverage tends to improve when stock levels rise and urgency fades. In those markets, buyers are likely to have more time, more choice and more room to negotiate than they did during the more heated parts of the cycle. But that is only one side of the story. Other parts of the country are still moving. Cotality's May figures showed Perth and Darwin continuing to rise strongly, while Brisbane, Adelaide and Hobart also recorded gains. [SQM Research data](https://sqmresearch.com.au/weekly-rents.php) also points to continued pressure in rental markets, with national asking rents still materially higher than a year ago. This is the important point for investors: the property market is not simply "rising" or "falling". It is splitting. In Sydney and Melbourne, higher listing volumes and softer sentiment may create better buying conditions, particularly for investors who are disciplined on price and willing to walk away from ordinary assets. In other markets, the challenge may be very different — limited supply, strong rental demand and ongoing competition for well-located, affordable property. For investors, this is not a market for broad assumptions. It is a market for selectivity. A softer market can be useful, but only if the asset still makes sense. A rising market can still be dangerous if the purchase is driven by emotion, poor cash flow or weak long-term fundamentals. The goal is not to chase the hottest location or wait endlessly for a national downturn. The goal is to understand the specific market, the specific suburb and the specific property. At Firm Foundations Property, we are paying close attention to three things: - Where buyer leverage is improving; - Where rental pressure remains strong; and - Where long-term supply and affordability fundamentals still support future growth. The current market is creating opportunity, but it is not the same opportunity everywhere. In some locations, the opportunity may be negotiating harder. In others, it may be moving quickly when a genuinely scarce asset appears. The investors who do well from here are unlikely to be the ones reacting to national headlines. They are more likely to be the ones who understand the local conditions before they buy. --- **Sources:** Cotality, *National Home Value Index*, June 2026; Domain, *Sydney home listings hit 17-year high, Melbourne reaches 12-year peak*, June 2026; SQM Research, weekly rent and listings data, June 2026.