Australian Property Market Changes and Opportunities
Australia’s property market is changing — fast. For investors who want to build wealth and stay ahead of the herd, the key lies not in looking backward, but in reading and identifying market signals for the future.
Most headlines and property commentary focus on where prices have been, not where they’re going. But the truth is, the past doesn’t predict the future. The investors who profit most are those who understand the indicators of change — economic trends, population movements, infrastructure pipelines, and, most importantly, the ongoing crisis of low housing supply meeting surging demand.
Let’s unpack what the data is really telling us, and where smart investors should be focusing now.
The Real Problem: Too Many Opinions, Not Enough Forward-Looking Data
Property investors today are drowning in data. Everywhere you look there’s another analyst, economist or spruiker portraying as a “guru” sharing a formula or location for success. But many of these formulas are based on their belief and or outdated relying on historic data rather than emerging trends.
At properT network, based on our 19 years as professionals in the investment property space, we combine property data with economic and demographic indicators to forecast future growth areas — focused on what can predictably happened, based on the constant in real estate is change.
Investors who recognise and adapt to that change early, will always outperform those following the herd.
Supply Shortage: The Core Driver of Capital Growth and Rising Rents
Forget the noise about interest rates and media speculation. The number-one driver of property prices right now is painfully simple: we’re not building enough homes!!
Australia is experiencing one of the most acute housing shortages in modern history. Population growth — fueled by migration and natural demand — is outstripping construction by tens of thousands of dwellings a year. This imbalance is pushing both prices and rents higher, across both capital cities and regional areas.
Even during economic uncertainty, limited supply has insulated property values and generated record-low vacancy rates. Investors who secure housing assets now, while others hesitate, are positioning themselves for significant capital appreciation and healthy yields over the next five years. Equating to both Capital Growth + Positively Geared potential … when selecting a property that is worthy of your investment dollars and aligned to an astute investment strategy.
Dispelling the Myths: Growth isn’t just in the Capitals
The belief that “you must buy in a capital city to get growth” is officially outdated. Australia has changed, and will continue to evolve.
Over the past 5 years, Regional Markets have rivaled and in many cases outperformed the big cities:
- Gold Coast: +77% growth vs Brisbane’s 63%
- Mount Gambier (SA): +60% growth
- Mandurah (WA): +78% growth vs Perth’s 62%
- Launceston (TAS): +57% growth vs Hobart’s 43%
Strong regional economies, infrastructure investment, and lifestyle migration have fueled this shift.
For investors, these markets offer not only affordability but strong rental returns and ongoing demand — a combination that’s becoming rare in capital cities.
Understanding Market Cycles: Timing is about Identifying Market Trend, not Guesswork
Real estate is cyclical. Markets rise, plateau, and rise again. Knowing where a location sits in its cycle allows investors to capture both short-term uplift and long-term growth. Plus the proven adage that it is not about timing the market, it is about “Time Spent in the Market.“
For example, Perth’s sustained performance since 2018, or Adelaide’s consistent growth over the last five years, both stemmed from investors recognising structural change early — before the data made headlines.
These “second-wind markets” — areas that boomed during COVID, cooled slightly, and are now reigniting — present some of the best opportunities today. Locations like Frankston, Bendigo, Ballarat, and the Sunshine Coast plus others are showing clear signs of renewed momentum. All experiencing parallel growth in terms of : demand, low supply, population growth, industry and government investment into infrastructure, lifestyle, affordability etc.
Emerging Trend: The Rise and Rise of Units
For decades, investors believed houses would always outperform units. But recent data challenges that assumption.
Across 2024–2025, units outperformed houses in Brisbane, Perth, Adelaide, Darwin, and multiple regional markets. In Brisbane, unit prices rose 13% versus 9% for houses; in Perth, 12% versus 7%.
This trend is being driven by lifestyle shifts — downsizers, young professionals, and migrants seeking affordable, secure, low-maintenance homes close to amenities. With the affordability gap between houses and units widening, demand for quality apartments will continue to climb, particularly in inner-urban and lifestyle-driven regional hubs.
What Smart Investors Are Doing Now
Savvy investors aren’t chasing last year’s hot spot. They’re analysing leading indicators — the early signs of demand that signal tomorrow’s growth.
At properT network, we research market Price Predicting Index (PPI) to help our clients identify rising sales activity as a key precursor to price growth. Where transaction volumes rise consistently quarter-on-quarter, price growth almost always follows.
We pair this with the market’s Empirical Formula — a set of fundamentals that filters out risky markets and highlights sustainable opportunities. These include:
- Population above 50,000
- Diverse local economy and job growth
- Major infrastructure and transport links and investment
- Low vacancy rates and strong rental demand
- Median price typically $800,000 – $1.2m
This formula eliminates one-industry type towns and speculative “boom or bust” areas, keeping focus on reliable, long-term growth potential where population growth is planned for – placing upward pressure on supply of dwellings to own or rent.
Where the Opportunities Are Emerging
Current national data reveals over 1,700 Australian suburbs achieved double-digit growth last year, and more than 570 markets recorded 20%+ growth — many with median prices below $700,000. This does not indicate our investors should continue to invest in these locations.
Queensland, Western Australia, and South Australia continue to dominate, with over 1,300 of those high-growth markets between them. But Victoria is now showing early signs of revival, particularly in the outer-metro and regional belts — the first green shoots of recovery since its slowdown. Victoria sits in a position on the property clock poised for growth, having an exceptionally high population growth, yet a slow down in building approvals.
Markets with strong infrastructure pipelines, local employment growth, and limited new supply are the ones to watch, research and act on now, ahead of the trend and way before the media start to report their growth … that would mean you have missed out on a decent slice of capital growth potential.
“Property Markets don’t Wait for the Market to Prove You Right.”
how would you identify investment grade property opportunities?
Final Takeaway: “Property Markets don’t Wait for the Market to Prove You Right.”
Every investor wants certainty — but waiting for “proof” often means missing the opportunity entirely.
Did you know that the property market doesn’t move as one? While headlines talk about “the Australian housing market,” the reality is there are thousands of micro-markets, each responding to their own local economic conditions. But how do you identify which make for a ‘better’ investment?
The investors who succeed in the next cycle will be those who act decisively — those who recognise that low supply, strong demand, and shifting living patterns are reshaping the investment landscape right now.
Australia’s next generation of growth markets is already forming.
The only question is: “Will you be ahead of the herd, or chasing it?”
