Key takeaways:
Buyers may have more leverage, with homes taking longer to sell and vendors becoming more flexible in some markets.
A buyer’s market is not universal. Well-located homes, particularly in sought-after school zones, may still attract strong competition.
Passed-in properties may create opportunities to negotiate after auction, but buyers should maintain a firm price limit.
A lower price does not mean a larger budget. Borrowing power and manageable repayments remain central to any offer.
Buyers may have more room to negotiate in parts of Australia’s property market, but that does not necessarily mean every property is a bargain or every buyer can afford to borrow more.
Homes are taking longer to sell, more properties are available for sale, and vendors are accepting larger discounts from their original asking prices. At the same time, elevated interest rates and cost-of-living pressures continue to limit borrowing power for some households.
For buyers, that may mean more time to compare properties, complete due diligence and negotiate on both price and contract terms. The challenge is knowing what a property is worth and staying within a manageable budget.
Is Australia becoming a buyer’s market?
Several indicators suggest selling conditions have shifted in buyers’ favour.
Cotality’s September 2026 Home Value Index described conditions as a buyer’s market, pointing to longer selling times, larger vendor discounts, low auction clearance rates and above-average advertised stock.
However, conditions continue to vary between cities, suburbs and property types. An affordable home in a tightly held school zone, for example, may still attract strong competition even when the broader market is slowing.
Melbourne-based Mobile Aussie Broker Sabin Sthapit said said buyers were still stretching their budgets for established homes in sought-after school zones.
“When people are stretching their budget, they are usually looking in a particular school zone,” he said.
“There is still high demand because there are only a limited number of established homes on the market.”
This variation is also visible across price segments. Cotality found upper-quartile house values were 10.7% below their peak in Sydney and 10.5% below peak in Melbourne, while lower-priced homes and units had generally been more resilient. Perth’s unit market was an exception, with units recording larger declines than houses across every value tier.
For buyers, this means negotiating conditions may vary not only by location, but also by property type and price bracket. The more useful question is whether the type of property they want is attracting fewer offers, staying listed for longer or selling below its original asking price.
You might also be interested in: Could spring 2026 become a buyer’s market?
Vendor discounts have widened
Vendor discounting measures the difference between a property’s original advertised price and its eventual sale price. A larger discount may indicate that sellers are becoming more willing to adjust their expectations.
The national median vendor discount reached 4.0% over the three months to August 2026, up from around 3.1% at the beginning of the year, according to the Cotality September Housing Chart Pack. The median discount across the capitals reaching 4.2%, the highest level since January 2023.
For illustration, a 4% difference on an $800,000 advertised price would equal $32,000, resulting in a sale price of $768,000.
If a buyer were contributing a 20% deposit, the lower price could reduce:
the deposit from $160,000 to $153,600
the proposed loan amount from $640,000 to $614,400
This example excludes stamp duty, conveyancing, inspections and other purchasing costs. It also assumes the lender values the property at the purchase price and approves the proposed loan. Actual outcomes will depend on the buyer’s circumstances and lender requirements.
A lower purchase price may reduce the amount a buyer needs to borrow, but it does not automatically increase their borrowing power. Lenders will still assess income, expenses, existing debts, interest rates and their own serviceability criteria.
An Aussie Broker can help you understand your borrowing power and how different purchase prices may affect your proposed loan and repayments.
Homes are taking longer to sell
The median Australian home took 39 days to sell over the three months to August 2026, compared with 28 days over the same period a year earlier.
Longer selling times may give buyers more opportunity to inspect a property more than once, review comparable sales, arrange building and pest inspections and consider their offer carefully.
Market | Median dwelling value | Median days on market |
|---|---|---|
Sydney | $1,222,718 | 45 days |
Melbourne | $786,718 | 43 days |
Brisbane | $1,080,142 | 35 days |
Adelaide | $937,207 | 33 days |
Perth | $999,987 | 22 days |
Hobart | $752,397 | 31 days |
Darwin | $647,259 | 34 days |
Canberra | $864,998 | 51 days |
Combined capitals | $990,394 | 37 days |
National | $912,885 | 39 days |
Sources: Cotality Home Value Index, September 2026; Cotality September Housing Chart Pack
Before negotiating on a longer-listed home, buyers may wish to ask:
Has the asking price changed?
Why has the property not sold?
What have comparable properties sold for recently?
The Aussie Property Hub can help buyers research properties, recent sales and suburb-level information before making an offer.
Passed-in properties may open the door to negotiation
The combined capital-city auction clearance rate averaged 49.5% over the four weeks to the end of August, remaining below 50% since early June.
According to Cotality, the number of properties being passed in suggested buyers and vendors were not always agreeing on price.
A property passing in does not necessarily mean the seller must accept a substantially lower offer. However, it may create an opportunity for buyers to negotiate after the auction, particularly if the vendor has a clear reason or deadline for selling.
Sthapit said one of his clients had recently secured a property through post-auction negotiations.
“The property passed in and they were able to negotiate with the vendor,” he said.
“They ultimately secured it after increasing their offer by about $5,000.”
Buyers should still set a firm limit before bidding or negotiating. Buying at auction generally involves an unconditional sale, although the laws and processes vary between states and territories. Buyers may wish to obtain legal advice and confirm their finance position before bidding.
More negotiating room does not necessarily mean a larger budget
A lower purchase price may reduce the deposit and loan amount required for a particular home. Sthapit added this had encouraged some Melbourne upgraders to reconsider locations and property types that had previously been outside their budget.
“I have had two purchases happen that would not have happened before,” Sabin said.
“One was an existing customer who was trying to upgrade, but the area and type of property they were looking at had always been outside their budget.”
The customer had previously been looking at properties priced around $1.5 million to $1.6 million but recently purchased a new property for about $1.3 million.
However, buyers should not increase their budget solely because they expect to negotiate a discount. Interest rates, lender serviceability requirements, and household expenses may still limit what they can borrow and comfortably repay.
Buyers should treat their maximum borrowing capacity as a ceiling, not necessarily a target. Aussie’s mortgage repayment calculator can help compare estimated repayments at different purchase prices and interest rates.
What can property buyers negotiate?
Price is only one part of a property negotiation. Depending on the seller’s circumstances, buyers may also be able to discuss:
the deposit amount or timing
finance, inspection or other contract conditions
For example, a seller who has already purchased another home may value a shorter settlement. An upgrader who still needs to sell may prefer more time.
Buyers should obtain legal advice before changing or waiving contract conditions. Making an unconditional offer can expose a buyer to significant financial risk if finance is not approved or the property has undiscovered problems.
How to negotiate without overpaying
Before making an offer, buyers may wish to:
Set a complete property budget. Include stamp duty, inspections, conveyancing and moving costs, not just the purchase price.
Review comparable sales. Focus on recently sold properties with a similar location, size and condition.
Arrange finance early. Pre-approval may indicate what a lender could be prepared to lend, but it is conditional and does not guarantee final approval.
Keep a firm limit. Test how the proposed loan may affect repayments and household cash flow before increasing an offer.
Current conditions may give some buyers more time and flexibility, but the opportunity is not uniform. The aim should not simply be to negotiate the largest discount. It should be to secure a suitable property at a price and loan structure that remain manageable.
An Aussie Broker can help you understand your borrowing power, compare participating lenders and assess what may be achievable based on your circumstances.
