Blue Mountains Market Update 2nd Half 2026
OVERVIEW
In Q2 2026, Blue Mountains* recorded a median house price of $1,071,000 and a median unit price of $800,000. This is an annual (Q2 2025 – Q2 2026) growth of 10.7% for houses, but a slight -2.1% softening for units. Comparing Q2 2025 and Q2 2026, sales declined by -24.6% (to 304 sales in Q2 2026) for houses and -8.8% (to 31 sales in Q2 2026) for units. There is an undersupply in the market, in particular for houses, which resulted in a price growth even with higher interest rates in 2026. Now is an ideal time for home-owners to transact. The unit market is slightly more affordable in Q2 2026, which is an opportunity for first home buyers. With very little new housing built, buyers must act fast before any further price growth.
CHANGE FROM LAST
YEAR
FUTURE DEVELOPMENTS** Blue Mountains£ will see approximately $94.2M of all new projects that are due to commence construction in 2026. Commercial $9.4M Industrial
HALF YEAR
$6.1M
HOUSE SALE S
Mixed Use $44.2M
HOUSE ME DIAN PRICE
Infrastructure $34.6M
HOUSE RE NTAL PRICE UNIT SALE S UNIT ME DIAN PRICE
A key infrastructure project is the Blaxland Town Centre. This is a Local Government update which will improve civil, landscaping, and lighting works. Combined with other infrastructure projects in the pipeline this will create a better quality of life for new and existing residents in the local area.
UNIT RE NTAL PRICE
$ MARKET CONDITIONS MEDIAN PRICE Q2 2026
$1.07M
$800K
MEDIAN PRICE Q2 2026
$750
SALES
AVERAGE DAYS ON MARKET Q2 2026
58
40
HOUSE
U N I T
RENTALS
$520
AVERAGE DAYS ON MARKET Q2 2026
18
21
HOUSE
U N I T
New housing stock will be delivered in the form of a mixed-use development, which include (but not limited to): •
3 Euroka Road (2 Units)
•
109 Great Western Highway (4 Dwellings)
Although there are a few projects that will deliver new housing to the Blue Mountains£ it is not enough to answer market demand; especially as there were 304 house sales in Q2 2026 alone. This suggest a high likelihood of more price growth in the short and long term.
4 2 Units/ Apartments
Dwellings