Blue Mountains Property Market Update 1st Half 2026
The Blue Mountains is a stunning picturesque area about 60 kilometres west of Sydney CBD. Known for its dramatic cliffs it is a haven for outdoor enthusiasts. With modern amenities and transport options to Sydney CBD, the area is an ideal family location.
Property Trends
In Q4 2025, Blue Mountains had a median house price of $1,052,000 and a median unit price of $795,000. This represents an annual (Q4 2024 – Q4 2025) median price growth of 13.7% for houses and 10.4% for units. Comparing Q4 2024 – Q4 2025, sales increased by 13.5% for houses (to 388 sales in Q4 2025), and by 65.2% for units (to 38 sales in Q4 2025). Median prices have increased in the Blue Mountains, despite increased sales (more supply). This indicates a resilient and highly demanded market. This suggests that now is an ideal time for owners to capitalise on their investment, especially with very little new stock planned for construction in 2026.
Project Development
Blue Mountains will see approx. $161.8M of new projects commencing construction in 2026. Key residential/mixed use projects that will provide supply include: 98 Railway Parade (3 townhouses), 5–7 Camp Street Mixed Project (4 Dwellings) and 3 Euroka Road Mixed Use Development (2 Units). With a very low number of stand-alone houses planned, especially compared to Q4 2025 sales of 388 houses, an undersupply is likely. This will push up prices even further, for all stock types. Thus, buyers must act fast.
Rental Market & Growth
House rental yields in Springwood (2777) were 3.3% as of December 2025, above the Blue Mountains LGA (2.9%) and higher than Sydney Metro (2.6%). Further, median house rental price increased by 5.9% in the past 12 months to Q4 2025, at $720 per week. In this time, the number of housed rented increased, by 18.5% (to 32 houses in Q4 2025). This indicates a highly demanded house rental market in Blue Mountains, which is beneficial to investors – especially those looking for a more affordable option to Sydney.
Vacancy Rates & Property Investment
Springwood (2777) recorded a low vacancy rate of 0.6% in December 2025, below the Blue Mountains LGA average of 1.2% and Sydney Metro’s 1.8%. Vacancy rates have decreased in the past 12 months, indicating an even tighter rental market. Furthermore, a 0.6% vacancy rate is significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%. This suggests a quicker occupancy of rental homes in Springwood (2777) / the Blue Mountains. There is a conducive environment for investors, even with a higher house and unit sales price (entry price) in Q4 2025.
