Australia’s property market continues to adapt and grow, revealing opportunities for investors both today and into the future. Despite economic fluctuations, shifting supply and demand factors, and changes in housing policy, property remains a foundational investment asset class due to its resilience, capacity for long-term capital growth, and income-generating potential.

Signs of renewed growth and stability

Recent trends indicate a steady rise in property prices across multiple Australian markets, hinting at a potential return to strong growth conditions. This is driven by continued population growth through migration, limited housing supply relative to demand, and confidence returning as inflation stabilises and interest rates appear to have peaked. In major cities such as Sydney, Melbourne, Brisbane, and Perth, agents are reporting increased buyer competition, suggesting early signs of a mini boom in select suburbs.

The power of the ‘investor hat-trick’

Savvy investors are currently targeting locations that deliver the ‘investor hat-trick’: affordability, high rental yields, and potential for capital growth. Regional areas and outer metropolitan zones often offer properties with purchase prices accessible to first-time investors while still delivering healthy rental income. Combined with long-term infrastructure investment – such as transport upgrades and regional economic development – these areas provide a compelling proposition for those seeking strong total returns.

Perth’s standout performance

Perth continues to outperform many Australian cities, with specific property types such as villas and townhouses providing attractive yields alongside solid capital growth. The relative affordability of Perth properties, alongside Western Australia’s strong mining-led economy and population growth, positions it as a standout market. Investors are capitalising on low vacancy rates that support rental increases, enhancing cash flow outcomes even in a high interest rate environment.

Eastern states remain resilient

Midway through 2025, eastern states markets are showing signs of stabilisation after periods of cooling. Brisbane remains a popular investment choice due to interstate migration and preparations for the 2032 Olympic Games. Sydney and Melbourne, while less affordable for entry-level investors, continue to deliver growth in well-chosen pockets with development potential or urban renewal projects underway.

Shifts in housing supply strategies

In Western Australia, government and developers are pivoting towards higher-density housing options to address affordability challenges and growing population demands. This signals an emerging opportunity for investors to consider apartments, villas, and townhouses in well-located areas. Nationally, the long-term undersupply of dwellings relative to demand underpins a strong future outlook for property prices and rents.

Why property remains a strategic investment choice

1. Tangible security – Unlike equities, property is a physical asset providing psychological comfort to many investors.

2. Leverage benefits – The ability to borrow against property magnifies potential returns when combined with rental income.

3. Resilience to inflation – Property historically grows in value over time, offsetting inflation impacts.

4. Population-driven demand – Australia’s immigration program and natural growth sustain ongoing demand for housing.

5. Tax advantages – Negative gearing, depreciation benefits, and potential capital gains concessions make property tax-efficient for many investors.

Looking forward

While no investment is risk-free, Australia’s property market remains underpinned by robust fundamentals. Strategic investors who focus on areas with strong economic activity, infrastructure development, and demographic growth are well-positioned to build wealth steadily over the long term.

For further insights on property investment, avoiding common pitfalls and staying informed about market conditions. reach out to John Tsoulos or Frank Pennisi at IFP Advisory on (08) 8423 6176. Your investment success depends on making informed, strategic decisions.

IFP Advisory is an Accredited ASPIRE Property Advisor Network advisor and all professionals are Qualified Property Investment Advisors (QPIA). Property investing is about purchasing a property that aligns with your goals and investment strategy. You should never be sold an investment. Know your numbers! If you invest wisely and strategically, the Australian residential property market can be a rewarding venture.