S&P Global Ratings’ June-quarter RMBS review, reported by Mortgage Professional Australia, shows 0.91% of prime NSW mortgages in its securitised-loan sample were more than 30 days in arrears at June 2026, above the 0.85% national prime rate. National nonconforming arrears were 3.42%. Higher interest rates and softer property values are reducing refinancing and voluntary-sale options for some highly leveraged recent borrowers, although S&P still expects overall mortgage performance to remain steady and losses to stay contained while unemployment remains relatively low. Sydney owners and investors should maintain realistic cash-flow buffers, review lending costs early and seek lender support promptly if repayment pressure emerges.
Mortgage arrears indicators at June 2026
Measure
Rate
NSW prime RMBS, 30+ days
0.91%
Australia prime RMBS, 30+ days
0.85%
Australia nonconforming RMBS
3.42%
Victoria prime RMBS, 30+ days
1.00%
Queensland prime RMBS, 30+ days
0.55%
RMBS figures cover loans in residential mortgage-backed securities and are not the entire mortgage market. Source: S&P Global Ratings, as reported by Mortgage Professional Australia.
NSW construction activity rises 1.4% in the June quarter
The ABS preliminary Construction Work Done release shows the value of construction activity in NSW rose 1.4% in the June 2026 quarter to $24.11 billion and was 7.7% higher than a year earlier. National residential building work increased 1.7% over the quarter and 9.1% over the year to $27.87 billion. Total Australian construction nevertheless fell 2.1%, mainly because engineering work declined 6.0%. For Sydney property owners and investors, stronger residential work points to an active supply pipeline, but it should not be read as an immediate increase in completed homes; local approvals, commencements and completion timing remain important.
Construction work done — June quarter 2026
Measure
Value
Quarterly change
Annual change
NSW total construction
$24.11b
+1.4%
+7.7%
Australia residential building
$27.87b
+1.7%
+9.1%
Australia total building
$45.84b
+1.3%
+10.0%
Australia total construction
$82.52b
−2.1%
+2.7%
Seasonally adjusted chain-volume measures. The ABS describes these as preliminary estimates subject to revision.
Sydney auction clearance rate revised to 56% for 29 August
Domain’s later-reported Sydney auction results for the week ending 29 August 2026 show 730 auctions scheduled and 516 results reported. 288 properties sold, 110 were withdrawn and 118 passed in, producing a 56% clearance rate, compared with 73% at the same time last year. Reported sales totalled $273,411,068, with a median sale price of $1,625,000. Domain last updated this historical weekly page on 9 September 2026 and describes the results as preliminary and current at the time of publication.
NSW modelling links denser Sydney housing with lower long-term costs
The 2026–27 NSW Intergenerational Report says the state added about 2.7 residents for each additional dwelling in the year to June 2025, close to the average household size. NSW Treasury modelling indicates that, compared with retaining 2021 density constraints, continued easing of density limits in established areas over 40 years could reduce housing costs per square metre by around 24%, cut commuting costs by about one-fifth and provide benefits equivalent to roughly $8,400 in additional annual income for the average household. These are long-term modelled outcomes, not guaranteed forecasts. For Sydney landlords and investors, transport access, local supply pipelines and changing dwelling types remain important when assessing future demand.
Westmead South proposal opens path for up to 13,000 homes
The NSW Department of Planning is exhibiting a draft Westmead South rezoning proposal that could enable up to 13,000 homes, with 3–5% dedicated to affordable housing. The plan allows diverse housing, including towers up to 38 storeys near the Metro station, almost three hectares of new public open space, a new school, community and commercial facilities, plus improved walking and cycling connections. Submissions close at 5 pm on 16 September 2026 and the proposal is expected to be finalised in 2027. This is a draft rezoning rather than a development approval; nearby owners and investors should review the official maps and supporting studies before drawing property-specific conclusions.
NSW sets one statewide framework for planning consultation
From 1 September 2026, a new statewide Community Participation Plan will replace more than 100 separate plans used across NSW. The NSW Government says the framework standardises consultation requirements, allows longer public-comment periods for strategic planning proposals and major complex developments, and removes mandatory exhibition for some low-impact development application types. Councils can still tailor their engagement approach. For Sydney property owners and investors, the change should make consultation rules more consistent, but notice and exhibition requirements will still depend on the proposal and applicable council guidance.
NSW property-tax first instalment is due 31 August
Revenue NSW advises that the first 2026–27 property-tax instalment is due on 31 August 2026 and interest may apply if payment is late. This is not the general NSW land tax: it applies only to owners who opted into the former First Home Buyer Choice scheme instead of paying transfer duty. For an opted-in property that is not owner-occupied, including one now rented out, the 2026–27 annual rate is $1,743.12 plus 1.170% of land value, subject to the owner’s assessment and any applicable cap. Affected owners should check their notice for the amount and payment options.
Bathla administration puts Western Sydney project delivery under scrutiny
Bathla Group, a major developer of lower-cost homes, townhouses and apartments in Western Sydney, has entered voluntary administration. ABC News reports that its main entity, Universal Property Group, recorded $3.2 billion in liabilities as at June 2025, while administrator Teneo said its immediate priority is to stabilise operations so construction activity and property settlements can continue. Bathla has projects and pipeline exposure across suburbs including Schofields, Marsden Park and Tallawong. Buyers and investors connected to affected projects should rely on project-specific written updates and professional advice, as timing and outcomes will depend on funding, contracts and the administrators’ decisions.
