Rate Cuts and Rising Prices: Australian Property Market Investment Forecast Update

The Headlines Are Catching Up – The Property Rise Is On

It’s always interesting when the headlines start to reflect what we’ve been talking about for years.

As one economist has put it:
“Australia’s housing market is now in a coordinated acceleration phase, with every single major market now exhibiting monthly growth rates that signal significant momentum building across the nation.”

Add to that the newly released CoreLogic July Home Value Index (HVI), and the trend is unmistakable:

• National housing values rose by 0.6% in June, marking five consecutive months of growth.
• Almost every region is in the green: Hobart was the only area to record a monthly decline (-0.2%).
• Supply remains tight, with listings tracking -5.8% below the same time last year.
• Rental growth is easing, but demand isn’t. The national rental index rose 1.3% for the quarter.

In other words, the tailwinds are back: lower interest rates, stronger confidence, a tight labour market, and ongoing supply constraints are creating a clear runway for price growth through 2025 and beyond.

While we typically focus on the micro level to uncover real opportunities, and often find that broad macro data can be more distracting than helpful, this is one of the few times the macro trends reveal a systemic issue. It’s exactly the kind of scenario we’ve been preparing our clients for.

The Rise We Forecasted Is Already Here

Yes, interest rate rises lingered longer than we believed they should have. But rather than cooling the market, they’ve simply delayed the next peak, not cancelled it. Better yet (or worse, depending on whether you own property or not), the delays have only increased the veracity of pent-up demand. The longer the delay, the greater the pressure builds.

Now, with the first rate cut already behind us and a second one tipped as early as next week, momentum is building faster than many anticipated.

We’ve consistently been saying it since 2022; the real upswing would unfold through 2025 and pick up pace as interest rates begin to fall. And for those paying attention, it’s clear that acceleration has now begun.

So What Comes Next?

We’re looking ahead to late 2026 into 2027 as the next peak, with strong growth likely across key markets over the next 18 months.

Let’s be clear, we don’t invest in the short term, but we keep getting asked, so here it is (it is also a good reminder of why we need to act now, rather than later):

Even as the broader economy slows, stimulus and policy shifts are giving more people more access to housing, whether that’s owner-occupiers, upgraders, or investors. The trouble is, the supply still isn’t catching up.

Despite the government rhetoric, there has been little to no real momentum in increasing housing supply. And in some markets, the gap between demand and supply is growing more extreme.

Let’s take the Sunshine Coast as a prime example.

It’s no longer Australia’s #1 migration destination, not because demand has eased, but because people simply can’t get in. There isn’t enough housing.

But don’t mistake that for decline. The Sunshine Coast is still recording some of the highest growth rates in the country. The shift is structural; this is a region with more change than any of the nation’s top 20 cities, more investment per capita, and a significant pipeline of infrastructure already underway. Key to note is that those who are coming are coming with money, so ‘affordability’ of the supposedly high prices isn’t materially changing – household disposable income is increasing.

This is the Manhattan effect (LINK) in action:
Limited land. High demand. High Disposable Incomes. Serious capital.

It’s not slowing, it’s transforming. And for those who can buy here, it’s a generational opportunity.

Strategy Over Speculation

If you’ve been waiting for prices to drop, you’ll likely be waiting forever.
It’s never going to be cheaper than it is today.

Every growth pattern we’ve forecasted hasn’t just materialised, it’s often outperformed even our conservative estimates. We’re entering a period of unprecedented opportunity, and whether you’re buying your first investment or growing your portfolio, your strategy matters more than ever.

Can’t afford to get into the Sunshine Coast? That doesn’t mean you’re out.
We’re actively researching and sourcing homes in other strong-performing regions. The key is aligning your strategy to your financial capacity, not chasing hype, but building a portfolio that works.

Remember, we aren’t talking about ‘where you live’, we are discussing property as a financial asset.

This isn’t about just buying a property.
It’s about creating long-term prosperity.
It’s about understanding the full picture and putting the right plan in place to get you there.

And you don’t have to do it alone.

We’ve been around for more than 20 years and have more than 15 years of accurate long-range forecasting. Tap that experience, foresight and capacity, and it’s no wonder we have such an impressive track record of helping investors succeed. We know what works. Our process is evidence-backed, proven, and entirely focused on your success.

Ignore the noise. Forget the headlines.
It’s not what people say, it’s what they do that counts.

If you’re ready to take the next step, we’re here to help.

Let’s build a strategy that moves with the market, while others are still waiting to see what happens.