NSW buyers are increasingly turning to apartments, which accounted for 37.05 per cent of property purchases in quarter three, up from 26.32 per cent in the previous three months, while the share of buyers purchasing houses fell by almost 12 per cent.
The shift comes amid affordability pressures and rising borrowing costs, following the Reserve Bank’s fourth interest rate rise of the year in September.
PropTech firm InfoTrack has released its latest Property Market Update, analysing NSW property sales from 1 July to 30 September 2026.
Houses accounted for 55.38 per cent of NSW property purchases in Q3, down from 67.3 per cent in Q2.
InfoTrack’s Chief Operating Officer Lee Bailie said: “While houses remain the most popular property type overall, the shift this quarter shows buyers are considering what they can afford rather than simply holding out for a house, and apartments are becoming a much bigger part of that equation.”
Vacant land also recorded its first meaningful lift this year, increasing its share of purchases from 6.32 per cent in Q2 to 7.58 per cent in Q3.
The rise comes ahead of changes announced in the Federal Budget to negative gearing rules from 1 July 2027, which will limit negative gearing on residential investment properties to new builds, including eligible homes constructed on vacant land.
“Vacant land has increased its share of purchases for two consecutive quarters. It will be worth watching whether that growth continues as investors assess the implications of the new rules for their property decisions,” he said.
For first home buyers, apartments accounted for 77.9 per cent of purchases, marking a third consecutive quarterly increase.
“Last quarter, almost four in five properties purchased by first home buyers were apartments, showing just how important more affordable property options have become for those trying to enter the market,” Mr Bailie said.
Parramatta retained the top position for first home buyer activity for the third consecutive quarter, ranking 37 per cent ahead of second-placed Ryde.
The suburb’s housing profile helps explain its appeal, with 63.2 per cent of occupied dwellings made up of apartments, townhouses or other attached housing, compared with 33.4 per cent across NSW.
Ryde climbed to second place, while Hurstville debuted in the Top 10 at number three. Wentworth Point jumped from tenth to fifth place.
“Parramatta, Ryde, Hurstville and Wentworth Point have all seen significant apartment development, giving first home buyers more choice as they look to enter the market,” Mr Bailie said.
“Western Sydney continues to be a major focus for first home buyers, with Parramatta, Penrith, Blacktown and Liverpool all in the Top 10.
“A second cluster is emerging along Sydney’s north-west corridor, with Ryde, Castle Hill and Rouse Hill also attracting strong first home buyer activity.”
The full report can be viewed here.
