Why the Property Market Is Set to Boom, Not Crash
Manage episode 508307621 series 3674111
Australian property prices are set to skyrocket in 2025 – not collapse. The data doesn’t lie.
A closer look at Australia’s housing market reveals a pressure cooker for growth. Predictions of a property crash overlook the hard facts of supply, demand, and affordability.
Why Property Prices Are Rising, Not Falling
- Construction industry insolvencies are up 21% year-on-year, cutting new housing supply.
- The government’s target is 240,000 homes annually, yet only 163,722 dwellings were built in 2024.
- Immigration remains strong with a net gain of 340,000 people, driving long-term demand.
- Shrinking household sizes require an extra 120,000 dwellings nationwide.
Market Evidence of Growth
- Properties are selling fast – just 15 days on average.
- Listing levels are 20% below the five-year average.
- Vacancy rates are at record lows: Adelaide 0.8%, Brisbane 1%, Perth 0.7%, Melbourne 1.8%.
- Three interest rate cuts in 2025 (0.75% total) have boosted buyer power, with more predicted by major banks.
- First-home buyer caps have increased (Brisbane from $700k to $1M), further fuelling demand.
Long-Term Security in Real Estate
Australia’s residential real estate sector is worth $11.56 trillion, with a low national LVR of 21%. Over the past 30 years, metro house prices have grown 453%, cementing property as one of Australia’s most reliable wealth-building strategies.
The Bottom Line
Those waiting for a property crash risk missing out. The fundamentals – limited housing supply, rising population, and increasing affordability from rate cuts – all point to continued property price growth in 2025 and beyond.
Smart investors who act on this data, not fear, will build significant wealth in Australia’s property market.
Learn, invest, grow!
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Disclaimer:
The viewer/listener acknowledges and agrees that:
- Taylored Property Wealth Pty Ltd is a licensed Buyer’s Agency operating in New South Wales, Australia. It is not a licensed financial adviser, accountant, solicitor, mortgage broker, builder, engineer, architect, town planner, or property manager.
- The information provided in this episode (or any related media content) is general in nature and does not...
Chapters
1. Property Crash: Myth or Reality? (00:00:00)
2. Supply and Demand Fundamentals (00:00:22)
3. Migration and Construction Challenges (00:01:59)
4. Interest Rate Cuts and Market Impact (00:04:15)
5. Real Estate Value and Future Outlook (00:05:36)
6. Taking Action in Today's Market (00:11:15)
70 episodes