To do well in property, I’ve found that you have to worry less about what location is going well right now and look ahead to where the market is heading.
Despite ongoing challenges like inflation, higher interest rates, and cautious sentiment, we’re seeing the early indicators of a rebound in many key markets. Despite the headwinds, recent CoreLogic analysis shows that property values across Australia are poised for long-term growth, driven by a severe shortage of housing, a rapidly growing population, and solid wage growth in key sectors.
But growth won’t be uniform. And it won’t be explosive like the years of ultra-low interest rates. Instead, the next five years are shaping up to be more measured with opportunity for buyers who understand where to look.
Take Melbourne. It’s been through a rough patch, with just 8.2% growth over the past five years compared to Sydney’s 28.2%. But that low base, combined with its growing affordability over Sydney, is now becoming a strength. As CoreLogic’s Tim Lawless pointed out, Melbourne has “built up quite a strong, competitive affordability advantage,” which makes it well-positioned for a comeback. “I would be surprised if Melbourne did not overachieve on that recent five-year period,” Lawless believes.
We’ve seen the same thing in our client portfolios. The last few months have already seen a jump in buyer confidence, more numbers at open homes, and competitive activity at auction, especially in the city’s premium and middle-ring markets. It’s the kind of early momentum that often signals the bottom of the cycle has passed.
Yes, headwinds still exist. Land tax, investor fatigue, and economic uncertainty are real factors. But what matters more is the structural imbalance. There simply isn’t enough housing to meet demand, especially in desirable locations. And with the construction sector still struggling to deliver new supply, the pressure on existing housing stock is only going to grow.
This is particularly true for detached housing. As both Lawless pointed out, scarcity will remain a dominant force, particularly in inner suburbs resistant to density increases. Townhouses and mid-density living will likely see greater demand, but houses in good locations will always outperform over time.
Importantly, this market isn’t just about homeowners, it’s about investors too. Even in a more cautious environment, the fundamentals of property still hold. Rents continue to rise across many areas, particularly where investor activity has dropped away due to land tax changes or affordability barriers. Melbourne, for example, has seen a big improvement in yields as prices corrected and rental demand surged.
What we’ve seen time and again, in Melbourne, Brisbane, Perth, and even emerging markets like Darwin, is that opportunity doesn’t disappear. It just shifts. As one market cools, another heats up. As one segment matures, another becomes affordable. And while timing the market perfectly is impossible, understanding where the growth is headed gives you an edge.
This is why we always tell our new clients to stop waiting for the perfect moment. The best time to buy is when you’re ready, when the fundamentals are strong, and when the deal makes sense for your long-term goals. Not based on elections or headlines or anything else.
What matters most is supply, sentiment, and economic fundamentals, and those are still pointing to opportunity ahead as CoreLogic points out.
So if you’re serious about building wealth through property, now’s the time to tune out the noise, focus on the fundamentals, and get strategic. The next five years are going to present plenty of opportunities, the only question is will you be ready to take them?