By Julian & Renee (Australia) – with writing support from Alberto Aldana (Colombia)
Many buyers and sellers across Sydney and New South Wales are focused on interest rates, fuel prices, and the rising cost of living. However, this is not the first time Australia has faced an energy-driven economic shock, which provides a model for what could happen in the near future and into 2026. The oil crisis of 1973 reminds us how global conflict can rapidly alter property decisions. During the 1970s, Australia produced approximately 70% of its own oil, which initially provided some protection. However, this was short-lived. As domestic prices began to align with global levels, fuel prices increased, inflation surged, and the property market adjusted accordingly. By 2026, Australia is in a more vulnerable position, as its reliance on imported fuel means global supply disruptions can flow through to households, lending conditions, and settlements much more quickly.
The most important lesson is that energy shocks are not limited to petrol stations — they affect the entire economy. The main pressure points for property owners and buyers include:
- Rising fuel costs increasing transport and freight expenses across NSW
- Higher construction costs due to reliance on diesel transport for materials
- Inflation placing pressure on the Reserve Bank to maintain higher interest rates
- Reduced borrowing capacity, leading to lost pre-approvals and tighter lending conditions
There is a stark contrast between past and present:
- In the 1970s, Australia experienced inflation as high as 17.6%, alongside rising unemployment and sharply higher interest rates
- Despite this, property sometimes acted as a hedge against inflation, as buyers sought hard assets
- By 2026, the situation is more fragile due to significantly higher household debt and greater sensitivity to interest rate rises and repayment shocks
The consequences for vendors and purchasers can be significant:
- Sellers may face:
- Slower buyer demand
- More difficult negotiations
- Increased time on market
- Buyers face greater risks, including:
- Reduced borrowing capacity
- Higher mortgage costs
- Increased likelihood of finance complications during settlement
There are also broader practical considerations. Australia’s Liquid Fuel Emergency framework exists due to limited onshore fuel reserves. If key shipping routes are disrupted for extended periods, fuel rationing could become a real possibility. This has direct implications for property, influencing transport and commuting patterns, construction activity and buyer preferences. As a result, properties with the following features may become more desirable:
- Proximity to train lines and town centres
- Access to public transport
- Solar panels and battery systems
- EV charging capability
In areas such as Blacktown, Schofields, Marsden Park, Kellyville, Rouse Hill, and Norwest, these factors are increasingly becoming economic drivers, not just lifestyle preferences.
Julian and Renee are specialists in property transactions throughout New South Wales. With extensive experience working with local councils including Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby, and Parramatta, they bring a personalised approach to every settlement. In uncertain times, conveyancing is much more than paperwork. We assist buyers and sellers in understanding risk, timing, financial pressure, and contract strategy. This helps ensure that small issues do not become major problems, particularly in an environment where economic conditions are changing rapidly.
Our team has a proven track record of working seamlessly with the Blacktown, Hawkesbury, Blue Mountains, The Hills Shire, Hornsby, and Parramatta councils.
North-West Growth Corridor: Marsden Park, Box Hill, Schofields, Tallawong, Riverstone, Gables, Melonba, Grantham Farm, and Angus.
The Hills District & Surrounds: Castle Hill, Kellyville, North Kellyville, Bella Vista, Baulkham Hills, Beaumont Hills, Norwest, Rouse Hill, Winston Hills, and Westmead.
Blacktown City & Established West: Blacktown, Seven Hills, Glendenning, Glenwood, Stanhope Gardens, The Ponds, Quakers Hill, Kings Langley, Parklea, Acacia Gardens, Arndell Park, Rooty Hill, and Doonside.
Hawkesbury & Lifestyle Estates: Dural, Middle Dural, Kenthurst, Glenhaven, Galston, Glenorie, Annangrove, Nelson, Cattai, Maraylya, Vineyard, and Windsor.
Parramatta & Emerging Hubs: Parramatta, Northmead, North Rocks, North Parramatta, Wentworthville, and St Marys.