Why New Property Under $750,000 Deserves Investor Attention

Why read this article

• Understand why lower-priced property is showing greater relative resilience
• Learn how affordability is influencing buyer and rental demand
• Understand what changing negative gearing rules may mean for eligible new property

Australia’s property market is changing — and the lower-priced end of the market deserves attention.

>While national property values have softened during 2026, recent data shows that more affordable property has been holding up better than the premium end of the market.

Cotality reported that over the three months to July 2026, upper-quartile home values fell 3.2%, while lower-quartile values increased 0.3%.

These figures reflect recent market performance only and do not mean lower-priced property will continue to outperform. Results can vary significantly between markets and individual properties.

However, the trend highlights something important: affordability is increasingly influencing where buyers can participate.

For investors, that puts selected new property below $750,000 firmly on the radar.

Why the $750,000 market matters

PropTrack reported Australia’s median home price at approximately $894,000 in July 2026, including a median house price of around $989,000 and a median unit price of approximately $730,000.

That makes the sub-$750,000 market particularly relevant.

Higher interest rates are limiting how far many buyers can stretch their budgets. On 11 August 2026, the Reserve Bank of Australia left the cash rate unchanged at 4.35%, after three rate increases earlier in the year.

When borrowing capacity is tighter, buyers often look towards more affordable houses, townhouses, units, outer metropolitan locations and selected regional markets.

That can increase the potential pool of buyers for appropriately priced property.

For an investor, this matters not only when purchasing, but also when renting the property and eventually selling it.

Affordable property is showing relative resilience

The broader property market may have softened, but it is not moving evenly.

Recent Cotality data showed the decline has been concentrated more heavily at the expensive end of the market.

At the same time, PropTrack reported that national unit prices increased 5.1% over the year to July, compared with 3.6% for houses, with affordability identified as one factor contributing to stronger unit demand.

That does not mean every affordable property is a good investment.

But it does reinforce the importance of targeting property that sits within the financial reach of a broad group of buyers and renters.

The opportunity is not simply to buy something because it is cheap.

The stronger proposition is:

Affordable price + genuine demand + limited competing supply + good rental appeal + quality new housing.

New property has another advantage: replacement costs are rising

Inflation remains an important consideration for property investors.

Australian CPI inflation was 3.8% in June 2026, while trimmed mean inflation remained at 3.6%.

More importantly for new property investors, the ABS reported that new dwelling prices increased 5.8% over the year, with builders passing through higher labour and material costs.

Rents also increased 3.6% over the year.

Higher construction costs do not automatically mean property values will increase. Property prices remain influenced by supply, demand, finance conditions, location and property quality.

But there is an important investment consideration.

If it becomes increasingly expensive to build a replacement property because land, labour, materials and infrastructure cost more, the replacement value of housing can also become more significant.

For investors purchasing new property, that is one reason construction costs and future supply matter.

New property and negative gearing

One of the biggest changes for property investors is the future treatment of negative gearing.

From 1 July 2027, negative gearing of residential property will generally be limited to qualifying new residential property.

Properties held before 7:30pm AEST on 12 May 2026 are exempt from the changes.

Treasury has confirmed that qualifying new builds can continue to be negatively geared before and after 1 July 2027.

That creates an important distinction between qualifying new property and certain established residential investment properties.

For investors considering property over the coming years, this makes the type of property being purchased increasingly important.

What this could mean for investors

Negative gearing can allow eligible property expenses to reduce taxable income where the deductible costs associated with a rental property exceed the rental income received.

But it is important to understand what that means.

A tax deduction does not reimburse the full cost of an investment loss. Investors remain responsible for the property’s actual cash-flow shortfall, loan repayments and other holding costs.

The outcome will depend on the investor’s income, property expenses, ownership structure and applicable tax rules.

Negative gearing should therefore support an otherwise appropriate investment — not be the reason for purchasing one.

There is also an important current qualification.

Treasury is still finalising detailed elements of the new rules, including the definition of a qualifying “new residential dwelling”.

Investors should therefore not assume that every property marketed as new will automatically qualify after 1 July 2027.

Eligibility should be confirmed with an appropriately qualified accountant or tax adviser.

New property may also retain a CGT distinction

The changes also extend to capital gains tax.

Under the Government’s proposed framework from 1 July 2027, qualifying new-build investors may retain the ability to choose between the existing 50% CGT discount and the new inflation-based CGT arrangements.

The better treatment will depend on the investor’s circumstances, the property’s performance and applicable tax legislation at the time.

This adds another reason why qualifying new residential property deserves attention as the tax environment changes.

The power of leverage

Property also gives investors the ability to use borrowed funds to gain exposure to an asset significantly larger than their initial capital contribution.

For example, an investor may contribute part of the purchase price and borrow the balance, subject to lender requirements and borrowing capacity.

If the property increases in value, the increase applies to the value of the whole asset, not just the investor’s initial contribution.

That can magnify returns.

It can also magnify losses.

Investors remain responsible for the loan and property expenses if values fall, rents change or interest costs increase.

Leverage can be powerful, but it should always be supported by appropriate borrowing capacity and cash-flow planning.

Why new property under $750,000 stands out

Several factors are now coming together within this market.

Affordability: Property below $750,000 sits substantially below Australia’s current median house price and around the national median unit price.

Recent resilience: Lower-quartile property has recently held up better than the premium end of the market.

Buyer demand: Higher borrowing costs are directing greater attention towards more affordable housing.

Rental demand: National rents remain higher than a year ago, adding to the importance of well-located rental property.

Replacement costs: New dwelling costs continue to increase as labour and materials become more expensive.

Tax treatment: Qualifying new residential property will retain an important negative-gearing distinction from 1 July 2027.

Together, these factors make the affordable new-property market an increasingly relevant area for investors to investigate.

They do not guarantee investment performance, but they provide a strong reason to look more closely.

What makes a good sub-$750,000 investment?

Price should only be the starting point.

A property should also be supported by:

• Sustainable population and housing demand
• Diverse local employment
• Existing and funded infrastructure
• Appropriate levels of future housing supply
• Strong rental demand
• A property type suited to the local tenant and owner-occupier market
• A reputable builder or developer
• Holding costs the investor can comfortably manage

A cheaper property in a weak market can still be a poor investment.

The focus should be on finding value rather than simply finding the lowest price.

Why investors should start researching now

The negative-gearing changes take effect from 1 July 2027.

That does not mean investors should rush into a property purchase.

It does mean investors considering new property have a clear reason to begin reviewing their position now.

Researching markets, assessing borrowing capacity, obtaining taxation advice, comparing properties and completing due diligence all take time.

Starting earlier allows investors to make a considered decision rather than responding to a deadline.

Get in Touch

New property under $750,000 is becoming an increasingly important part of the Australian investment market.

Affordability is influencing buyer behaviour. Lower-priced housing has recently demonstrated greater relative resilience. Construction costs remain elevated. Rental prices have risen, and the changing negative-gearing rules will create an important distinction for qualifying new housing from 1 July 2027.

For investors, the message is not to buy simply because a property is new or below $750,000.

It is to look for well-researched new property at an accessible price, in markets supported by genuine demand and strong long-term fundamentals.

If you are considering property investment, talk to Accrue Real Estate about the new-property markets and opportunities below $750,000 that we are currently researching.

How Accrue Real Estate Helps

Finding the right new property under $750,000 requires more than simply focusing on price. At Accrue Real Estate, we use market research and property data to identify locations where affordability is supported by factors such as housing demand, employment, infrastructure, rental conditions and future supply. Our team helps clients compare new-property opportunities across Australia, assess builders and developers, and support property-related due diligence. We also work alongside your financial, taxation, lending and legal advisers so the property you consider can be assessed in the context of your broader circumstances and long-term objectives.