Australian property is unique

This table doesn’t have all the details I’d like but it’s one of the most comprehensive I’ve seen across countries, so thought it would be good to share here. Eg. it doesn’t show the interest tax deductions in the US can be on your primary residence, unlike in Australia.

According to this table, Australian property is the Nadia Comaneci of the housing Olympics! (Perfect 10s). Perhaps helps explain why our houses command some of the highest prices in the world over the last 2-3 decades and why the industry is typically so bullish on property.

Buyers’ agents have been vocal and published quite a lot on why we should invest in property. They see the policy settings, the tax incentives, the macro-economics, the trends, and Australian culture in general, all very positive for property. As a broker, I can also tell you that the Australian banking sector is absolutely interested in funding property and making it easier for borrowers/brokers/bankers to buy.

Additionally, from recent discussions I’ve had with a few independent buyers’ agents, I’ve taken the summary below from them as a cornerstone of what many of them have come to believe, follow and discuss with their clients. It’s based on trends they’ve seen in the Australian economy from the days of the GFC. Readers here should see this as a bit of a playbook buyers’ agents use to understand their economic outlook:

1. Property is a safe-haven during market uncertainty
2. The Govt introduces incentives whenever global markets are uncertain
3. RBA lowers cash rates which encourages investment and into property
4. Banks lower interest rates to remain competitive
5. Lower rates mean higher borrowing power
6. Investors target affordable properties when borrowing power increases

Take-aways

Consensus view of the industry is that prices will continue to go up, building on the recent gains seen in Melb in 2025, as it appears to catch up to the growth seen in the other capitals over the past 18-24 months. The industry is poised as it believes we’re on the cusp of the turning point in Melb now: 1H'25 Syd up 1.9% and Melb up 1.8%.

Buyers’ agents note that as Investors return to Melb market, there'll be no stock at the $600k-$650k levels. This is compounded by falling interest rates, with first home buyers having more borrowing capacity. Demand then will be high, they say. Followed by, of course, the eternal: NOW IS THE TIME TO INVEST! Buyer Beware. The better buyers’ agents frame Melb property as a ‘long game’, and that’s something I do support. Speak to your broker to understand your borrowing capacity and loan repayment serviceability.

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