The themes shaping NSW’s investment sales market in H1 2026

The NSW investment market recorded a solid first half of 2026, supported by improving buyer confidence, stabilising pricing expectations and renewed capital deployment across a range of asset classes. As investors adapted to evolving policy settings, changing capital allocation strategies and shifting market dynamics, transaction activity remained underpinned by demand for both development opportunities and income-producing assets. 

From planning reform and development site activity to investor diversification and the continued appeal of defensive assets, a range of themes emerged across the market during the first six months of the year. 

Below, Cushman & Wakefield's NSW Investment Sales team share their perspectives on the trends shaping investment activity across the state and what they mean for the market moving forward. 

Matt Pontey, Cushman & Wakefield’s National Director & Co-Head, Investment Sales NSW believes the investment landscape has shifted materially following the Federal Government's changes to negative gearing.  
“With commercial property retaining its tax advantages, we're seeing capital that would traditionally have been directed into residential assets actively reassessing commercial property and development opportunities. 

“At the same time, the repricing cycle has largely played out, giving buyers greater confidence around value and encouraging capital deployment across Sydney's metropolitan markets. 

"NSW's planning reforms have created one of the strongest development site stories we've seen in decades. Housing targets, transport-oriented development initiatives and planning uplift across key precincts are fundamentally changing how sites are assessed, with development potential now driving value rather than existing use. 

“As a result, we're seeing significant demand from developers and investors seeking opportunities in tightly held locations across the Eastern Suburbs and inner metropolitan corridor." 
Miron Solomons, Cushman & Wakefield’s National Director & Co-Head, Investment Sales NSW said the defining characteristic of the Eastern Suburbs market remains scarcity. Unlike many other markets, values here are underpinned by a combination of wealth, lifestyle appeal and an extremely limited supply of quality sites. 
“That scarcity creates a level of resilience that continues to attract both domestic and offshore capital, regardless of broader market conditions. 

"One of the most notable trends we're seeing is the rise of strata amalgamation transactions. Planning uplift across established precincts such as Double Bay, Bondi Junction, Paddington and Randwick has created opportunities for significant redevelopment, but unlocking those sites often requires bringing together multiple owners with differing objectives. These are highly complex transactions, yet they are becoming an increasingly important source of development stock in some of Sydney's most sought-after locations." 

In the development site sector, Jake Smith, Cushman & Wakefield’s Manager, Investment Sales NSW said development site campaigns are no longer being sold by simply placing an asset on the portals and waiting for enquiry.  
“The buyer pool has become more sophisticated, more selective, and more disciplined around planning risk, delivery cost, funding constraints and exit pricing. 

“In this market, value is created well before launch. The strongest campaigns are those where the asset has been properly interrogated, the planning pathway is clearly understood, and buyers are given a credible commercial narrative around what can be delivered, what risks remain, and where the upside sits. 

“While development opportunities remain abundant, buyers are placing far greater emphasis on planning certainty, feasibility and delivery risk than they have in previous cycles. The campaigns that will outperform are the most controlled, best prepared and commercially coherent, where planning potential is translated into a genuine value proposition.” 
In the multi-tenanted and apartment block sector, Henry Robertson, Cushman & Wakefield’s Executive, Investment Sales NSW said throughout the first half of the year, we've seen investors gravitate towards reliable income-producing assets, with multi-tenanted properties, particularly blocks of units, attracting heightened interest.  
“The appeal lies in their diversified income streams and the underlying strength of residential growth fundamentals, which continue to provide confidence in an evolving market. 

"As capital continues to move away from higher-risk sectors, demand for defensive, cash-flow-focused assets has strengthened. Investors are increasingly prioritising assets that offer dependable income and long-term resilience, particularly in an environment where certainty remains highly valued. 

"Commercial precincts with strong amenity, excellent transport connectivity and constrained supply have remained standout performers during the first half of the year. These locations continue to deliver rental resilience and capital growth potential, making them highly sought after by investors looking for quality assets in proven markets."