Property Market Australia: The Good, Bad and Must-Haves
December 21, 2021
As with any investment, you can expect two outcomes when you buy into the Australian property market.
Either you hit the jackpot by entering the housing market at the right time, in the right areas and watch property values go up, or you lose a significant portion of your wealth by betting on the wrong dwelling.
Knowing where and when to invest makes all the difference to your property price growth.
That’s why today, we’ll take a closer look at the best of what the housing market in Australia has to offer, and the worst of it so that you can make the best choices.
The housing market has experienced significant growth of roughly 8% per year since the 1960s. More recently, house prices have maintained an upward trajectory despite the extended lockdown period.
One key contributing factor to the market’s strength is the government’s record-low interest rates (designed to promote economic growth).
According to leading authorities like the National Australian Bank (NAB) and Westpac, 2021 prices are expected to climb 18% to reach record highs — breaking the million-dollar barrier.
The forecasts predict that by 2022, prices will still be on an upward trend, albeit slower than the past year.
Change In House Prices (Based on CoreLogic Data)
Month on Month(%)
New South Wales (NSW)
South Australia (SA)
Australia’s capital cities
Good Places to Buy Property In Australia
Here are areas expected to experience high capital gains as property prices continue to soar.
Queensland: Sunshine Coast
The Sunshine Coast’s long stretch of prime coastal land boasts many upcoming suburbs, with property prices growing at an average of 4–7% annually.
Areas like Yaroomba, Warana, Sunrise Beach and Noosa Heads have recorded significant growth potential and are billed to continue on a similar path.
The highest demand growth is mainly in areas closest to the beach as people move to those predominantly “lifestyle areas.”
The economy of the Sunshine Coast is worth over $18.5 billion and is growing at around 4% per annum. Forecasts indicate that the coastal area will have a population growth of 198 000 residents by 2041, further driving prices up.
Apart from the population growth, the coast is expected to diversify beyond tourism into health, high-tech and manufacturing industries.
As the economy of the Sunshine Coast grows from strength to strength, property investors and homebuyers can expect a sound return and substantial home equity.
New South Wales: Central Coast
The Central Coast area is about 100 km to the northern side of Sydney. The region attracts many city dwellers who move to regional areas searching for cheaper but high-quality lifestyles.
Areas like Ettalong Beach, Umina Beach, Gwandalan and Long Jetty have shown 11-13% price increases.
Suburbs in this area are attractive because:
They have considerably lower entry points. Houses in places like Toukley and Blue Haven cost an average of about $600,000. These prices fall within the limits of the government grants, which will also contribute to increased activity on the market.
The quality of life is similar to the more expensive capital city because of its proximity to the city (less than 2 hours from Sydney), excellent health facilities and schools.
There is a high potential for appreciation, with house prices predicted to increase 11% in 2022.
Rental property vacancies are also 0.5% lower than at the same time last year. The tightening vacancy rates mean a significant increase in people moving to the Central Coast, translating to higher values for dwellings in the area.
Melbourne: South Eastern Area Around Monash City
The south eastern side of Melbourne has observed an increase in demand pushing house prices up by roughly 10%.
Price Increases in Monash City Suburbs 2021
Price increase (%)
House prices tend to be steep, averaging over $1 million, while units in this area are cheaper, but both houses and units offer substantial rental yields of roughly 4%.
The area is home to one of Australia’s largest universities. In addition, the economy is a tech hub with investments in technical services, science and healthcare.
Australia’s premier hospital dedicated to heart problems will open its doors in the City of Monash in 2022, another pull factor for more investors to swarm the area, boosting the housing market.
Places to Be Wary of in Australia’s Housing Market
Despite the general boom on the market, it's best to avoid property investment in places with an oversupply of homes and lowering population figures.
Innermost Parts of the City
Housing markets at the heart of most capital cities like Sydney or Melbourne experienced a downturn in prices despite the boom all around them.
The reduction in value was triggered by an increased supply of units, especially apartments in the inner city. As more people migrate outside the city, lowering demand will put downward pressure on inner-city values.
Additionally, because of reduced international travel, the cost of inner-city apartments will keep falling.
Parts of Western Australia
The end of the boom in mining investments which peaked in the early 2000s caused population figures in Western Australia to plummet.
The population decline also hurt demand for housing which caused house and unit values to fall mainly in regional areas.
Population Decline Statistics in Western Australia
% Population Decline
The area’s economy relies on commodities that took a hit due to the global pandemic — leading to the property price structure responding similarly.
CoreLogic data shows that regional Western Australia had negative capital gains on both houses and units. That said, there are still some jewels to be found in the area, so do some calculations before you invest.
Australian Housing Market Must-Haves
Census statistics indicate that more people are moving out of the city and moving to less expensive regional areas to pursue better lifestyles.
Regional properties are, therefore, an opportunity not to be missed.
Owner-occupiers will benefit from top-tier luxury houses in prime regions. At the same time, investors can expect high capital gains as more buyers seek out regional living opportunities.
Townhouses close to the beach and other impressive locations in the best regional markets also offer a cheaper alternative for first-time buyers and investors alike.
Buying Real Estate in Australia
The dwelling market in Australia’s cities and regional areas offers investors and homeowners a good opportunity. With prices expected to continue rising and the Reserve Bank maintaining the current sharpest reduction in interest rates, buying property now will bring solid returns.
Use off-market property listings to beat the market and get premium houses and units before everyone else.
Off-market sites like Listing Loop give you first dibs on homes without the stress of scouring through ads or bidding at an auction.
Frequently Asked Questions
Can I Search for a Property in Different Suburbs?
Yes. Listing Loop allows you to list up to five suburbs. You can get a match from all (or any) of these suburbs.
Does Listing Loop Facilitate the Transaction With the Seller?
Listing Loop connects you with sellers through agents. We are not part of the transaction itself.
How Much Does It Cost to Use Listing Loop
You don’t pay anything to be matched to a property through Listing Loop’s off-market platform.
Simply download the free Listing Loop app or register online.
Once you specify the type of property you are looking for, we'll match you with the properties that best suit your needs. Then, you’re on your way to closing the deal.
It’s really that easy, so sign up today to find the best home to invest in.
Great app for properties, haven't had an issue with the team based on the Peninsula, they are great. Strongly recommend the app and the service. Huw Roberts.
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