Apartments accounted for 37.05 per cent of NSW property purchases in the third quarter of 2026, up sharply from 26.32 per cent in the previous quarter, according to InfoTrack’s latest Property Market Update.
Houses, by contrast, fell to 55.38 per cent of purchases, down from 67.3 per cent in Q2 – a drop of almost 12 per cent in market share.
The report analysed NSW property sales from 1 July to 30 September 2026.
InfoTrack attributed the shift to affordability pressures and rising borrowing costs, following the Reserve Bank’s fourth interest rate rise of the year in September.
Lee Bailie, InfoTrack’s Chief Operating Officer, said the figures point to buyers prioritising what they can afford over holding out for a particular property type.
“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,” Lee said.
Vacant land also picked up, rising from 6.32 per cent of purchases in Q2 to 7.58 per cent in Q3 – its second consecutive quarterly increase.
The movement comes ahead of Federal Budget changes to negative gearing rules that take effect 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,” Lee said.
“It will be worth watching whether that growth continues as investors assess the implications of the new rules for their property decisions.”
The apartment shift was most pronounced among first home buyers, for whom apartments made up 77.9 per cent of purchases – 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.”
Parramatta held onto the top spot for first home buyer activity for a third straight quarter, finishing 37 per cent ahead of second-placed Ryde.
InfoTrack’s data shows 63.2 per cent of occupied dwellings in Parramatta are apartments, townhouses or other attached housing, compared with 33.4 per cent across NSW as a whole.
Hurstville debuted in the Top 10 at number three, while 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.”
Western Sydney continues to dominate first home buyer activity, 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.”