In property being early in a market can be the difference between a good investment and a great one. Over the years, I’ve seen firsthand how getting into a market before it becomes widely recognised can set investors up for incredible returns. It’s not about chasing the hot spots where everyone else is buying—it’s about recognising the potential before the crowd arrives.
Property markets typically follow cycles of growth, correction and stagnation. The trick to being early is understanding where a market is in its cycle and spotting the signs of growth before it fully takes off. By the time a market hits the mainstream, much of the easy growth is already gone. Being early means you get in at the lower price points and ride the wave as demand drives prices up.
I’ve seen this play out in cities like Perth and Townsville. A few years ago, when many investors weren’t paying attention to these markets, I encouraged clients to get in early. The fundamentals were there—low supply, rising demand, and population growth were all pointing to future gains. Fast forward to today, and those who invested early are enjoying some pretty substantial increases.
When you’re early in a market, you benefit from more than just lower prices. You also face less competition, which means you can be more selective with the properties you choose and negotiate better deals. By the time a market becomes widely recognized as a “hot spot,” competition heats up, making it harder to find good deals and forcing buyers to pay premiums just to secure a property.
For example, when we bought in Townsville, the market was relatively quiet, and prices were still affordable. Today, that same market is seeing a surge in interest, and prices have risen significantly.
One of the key indicators I look for when assessing whether to enter a market early is the balance between supply and demand. This simple principle is often the driving force behind price movements and being able to read the signs early can give you a major advantage.
When a market has low listings—meaning there are fewer properties for sale—but shows strong sales numbers, it’s often a clear sign that demand is outstripping supply. This creates upward pressure on prices as buyers compete for a limited number of available homes. On the flip side, when supply is high and demand is low, prices tend to stagnate or fall.
I always look for markets where there are fewer properties coming onto the market but an increase in buyer activity. This tells me that the market is tightening, and prices are likely to rise as demand intensifies. If you can spot this dynamic early, you can get in before the real price increases happen.
There are also a few other indicators that are worth paying attention to.
– Infrastructure development: New roads, schools, transport links, and commercial projects are strong indicators that an area is poised for growth. These developments attract more residents and businesses, which in turn drive up demand for housing.
– Population growth: Areas experiencing steady population growth are often early indicators of future market demand. As more people move in, housing supply tightens, leading to rising property prices.
– Government investment: Government funding for major projects can signal a long-term commitment to the area’s development. This kind of investment is often a catalyst for future growth, making it an ideal time to get into the market before others catch on.
Being early isn’t about short-term wins—it’s about positioning yourself for long-term success. When you invest early in a market that’s about to grow, you benefit not only from rising property values but also from rental yields that improve as demand increases.
You also have the opportunity to generate equity quickly and even purchase again in the same market if you got in early enough. This is a very powerful way to grow your equity and build a large property portfolio in a short space of time.
So don’t wait for the market you want to buy in to start making headlines. Get set early and ride that wave higher.