When Everyone Else Steps Back, Could It Be Time for Investors to Look Closer?

Falling property values can improve the starting point

Entry price matters.

When property markets are booming, buyers often compete against each other, vendors have stronger negotiating power and investors can find themselves paying a premium simply to secure a property.

Today's market looks very different.

Cotality reports that the median time a property spends on the market has increased to 39 days from 28 days a year earlier, while capital-city vendor discounts have widened to 4.2%, the highest level since January 2023. Listings are also up substantially from a year ago.

For an investor, that can mean:

• less competition from other buyers
• more time to complete proper due diligence
• greater negotiating power
• more choice
• and potentially a better purchase price

None of that automatically makes a property a good investment.

But buying a quality asset at a lower price can improve the economics from day one.

It may mean borrowing less, contributing less capital and potentially improving the rental yield relative to the purchase price.

The question is not simply:

“Have property prices fallen?”

It is:

“Has this particular property fallen far enough for the numbers to start making sense?”

Rents are moving in the opposite direction

While property prices have been falling, rents have remained under pressure.

Cotality reported national rents increased 5.9% over the year to June 2026, taking the median national dwelling rent to approximately $705 per week. Over the previous five years, national rents had risen 40.6%.

There are also signs that rental supply could become tighter.

Recent analysis reported that significantly more rental properties have been sold than purchased and returned to the rental pool following the recent changes to the investment environment, potentially adding further pressure to rental availability.

For an investor, the combination is worth paying attention to:

lower property values + stronger rents = potentially improving rental yields.

That equation won't apply equally to every property or every suburb.

And future rent increases are never guaranteed.

But if purchase prices continue to soften while rents remain elevated, some properties that didn't stack up twelve months ago may start looking very different today.

That is why we believe investors should be running the numbers again rather than assuming the opportunity has disappeared simply because sentiment is negative.

Some of our best property decisions have been made when others were nervous

Property investing can feel easiest when everyone is optimistic.

Prices are rising.

Open homes are busy.

Investors are talking about their latest purchase.

And the headlines are positive.

But that is often when competition is also at its highest.

In our own experience, some of the better opportunities we have found in property have come during periods when other buyers were reluctant to participate.

That doesn't mean buying simply because other people are fearful.

It means being willing to look when others aren't.

If a quality property has fallen in value, the rent is attractive, there is strong underlying tenant demand and the long-term fundamentals of the area make sense, the fact that general market sentiment is poor doesn't automatically make it a bad investment.

In fact, reduced competition may allow an investor to be more selective.

You can negotiate.

You can walk away.

You can wait for the right property.

And you can focus on the numbers rather than competing with ten other buyers simply because everyone wants to own property at the same time.