You’ve probably heard it before: “Property values double every 7 to 10 years.” But is that really true?
It’s more of a myth than a rule.
While some high-performing suburbs have seen values double in under a decade, the national average tells a different story. According to CoreLogic, Australian property prices have increased by approximately 67% over the past 10 years - impressive, but not quite a doubling.
The reality is that property markets move in cycles and performance can vary significantly, even between neighbouring suburbs.
So, what’s happening right now?
Several indicators suggest we may be entering a new growth phase:
- Affordability : Property in the area where their values are doubled, usually it happened on affordable regions of the capital. Those areas started with lower prices compared to the other places, and it attract more people to buy the property in that area. Additionally, if those areas are complemented by better transportation links as an option, development at the regional level and amenity.
- Low Stock, High Demand: Property listings remain below historical averages, while buyer interest increases, creating upward pressure on prices. Although the government has made an effort to make properties affordable for people in Australia, a rental crisis still occurred.
- Population Growth: Australia's population grew by nearly 700,000 people last year, primarily through migration, intensifying housing demand. The foreign buyer and immigration aren’t significantly causing the Australian housing crisis, due to the investment rule for foreigners considered difficult, and also most of students prefer to be in student accommodation.
- Interest Rates Easing: The Reserve Bank of Australia has begun cutting interest rates, with further reductions expected. Lower rates can enhance borrowing capacity and stimulate buyer activity.
- Tight Rental Market: Rental vacancy rates have tightened to 1.6% nationally, making property investment more attractive due to higher yields.
- Construction Constraints: High construction costs and extended timelines are limiting the new housing supply, increasing the value of existing properties. The reason is also because developers and builders are only able to build new projects if it's feasible financially and if they can sell the property at higher prices compared to the current market prices.
What does this mean for you?
We're in a unique window of opportunity. If you've been waiting on the sidelines, now might be the time to act, not to chase the bottom, but to position yourself ahead of the next upswing.
While short-term market movements are unpredictable, long-term fundamentals remain strong: quality locations, limited supply and sustained demand drive lasting capital growth.
At Space Property, we're here to help you navigate this evolving landscape, whether you're a first-time buyer or expanding your investment portfolio. You could increase your wealth effortlessly through asset price appreciation, without really needing to add your working hours by taking advantage of the right timing for you to enter the property market. Moreover, you could avoid to pay the income’s tax through your investment in property.
Let's focus on strategy, not speculation.
The best time to buy was yesterday.
The next best time? Today.
