What’s happening in the Australian property market?

If you’re considering investing in the Australian property market, then it’s important that you’re aware of current housing trends. From the ongoing effect of the COVID-19 pandemic, increasing interest rates and the housing crisis, navigating the evolving landscape of real estate in 2024 is best done with the help of property market experts.

In this blog, the Capital Properties team take a look at the key housing trends that have emerged over the past few years and what they mean for property investors across different states and territories.

At Capital Properties, we’re committed to helping ADF members invest their disposable income wisely to achieve long-term financial freedom. That means staying up-to-date with housing trends and navigating the property market to take advantage of any opportunities that arise.

Our free Capital Properties Discovery Session is a great place to examine current housing trends and start your well-informed property investment journey.

On the go? Here’s 30 seconds of take outs:

  • The Australian property market is still feeling the effects of the COVID-19 pandemic.
  • There was a 16% increase in capital-to-regional movement since 2019.
  • Property values in combined capital cities rose by 10.2% in over the last year.
  • Almost each state & territory experienced record high property values in early 2022 & even though they’ve since fallen, property prices in most areas are still higher than pre-pandemic.
  • High interest rates & rising living costs have put pressure on the property market.
  • Rental vacancies are at their lowest since 2018.
  • The national median rent is $600 per week.
  • The government’s promise to deliver 2 million new properties by 2029 is falling short of its target & shows no sign of relieving the housing crisis.

Keep reading >>

Post COVID housing trends – prioritising lifestyle

I know we all want to forget it ever happened, but the reality is that the aftermath of the COVID-19 pandemic has reshaped the Australian property market and we’re still feeling the effects.

In the early days of lockdowns Aussies sought out tree and sea-changes for a better work-life balance in unprecedented numbers. Access to remote work resulted in an increase in demand for larger homes with dedicated office spaces, outdoor areas, and proximity to essential amenities. We’ve talked about this in our blog “The big shift towards the ideal Australian Lifestyle”. Even now, the latest Regional Movers Index shows a 16% increase in capital-to-regional movement since 2019. But that trend doesn’t mean that cities are missing out, with an increase in value by 10.2% in property values over the last year in the combined capital cities.

Let’s take a closer look at what’s happening in each state and territory.

State and territory housing trends:

– New South Wales (NSW) & Victoria 

The demand for city living stayed strong in Sydney and Melbourne, despite the challenges posed by high interest rates and the cost of living. NSW house prices grew to record highs in January 2022, climbing to 27% but have since fallen by 12%. Victoria hit its peak of 17.3% in February 2022 but has experienced a 9% fall. The current city market looks stable, but there’s an increased demand for more affordable housing options in outer suburbs and regional areas.

– Queensland 

Sunny Queensland had a huge surge in demand for lifestyle properties, particularly in coastal regions like the Gold Coast and Sunshine Coast. Brisbane experienced an overall growth of 42.7% in property values by June 2022 and only a 10.9% fall.

And this housing trend looks set to continue as Queensland continues to attract both owner-occupiers and investors seeking the ultimate Aussie lifestyle.

– South Australia, Tasmania & Northern Territory (NT) 

These regions have seen a mix of housing trends, with some areas experiencing significant growth due to the increased desire for space and relaxed lifestyle. However, some others struggled with affordability issues and limited supply. Adelaide had a growth of 44.7% in house values post pandemic and the market has remained strong with a fall of only 2.4%.

NT prices grew just over 31% during COVID with only a 2% fall, whereas Hobart saw a boom of 37.7% growth with a sharp fall of 12.9% in less than a year.

– Western Australia (WA)

Perth and other regional centres in WA experienced strong growth as remote work opportunities increased. The market peaked in July 2022 at 25.9% and has only dropped by 0.4%.

The state’s relative affordability compared to its eastern counterparts made it an attractive option for property investment. And a relatively high average salary in WA (approx. $1988 per week) means that the increased interest rates and cost of living seem to not have had the same detrimental effect as seen in other states.

High interest rates & the cost of living

The current high interest rates and rising cost of living have certainly put pressure on the property market, making affordability a concern for some potential investors. However, while these factors present challenges, they also create opportunities for many savvy investors.

With interest rates expected to stabilise in the coming months, it’s a great time for ADF members to explore property investment strategies that align with their long-term financial goals.

Rental prices

Although many homeowners are feeling the pinch and some prospective homebuyers might feel their dream of home ownership is getting further and further away, many renters are also having a tough time.

Right now, rental vacancies are at their lowest since 2018. Renters are battling in a highly competitive market, with the obvious outcome of increased rents.

Every Australian city has experienced an increase in the median price for rentals, for both units and houses. At the end of the March 2024 quarter, the national median rent advertised on realestate.com.au reached $600 per week. That’s an increase of 3.4% over the quarter and a 9.1% increase from the year prior. And with the current housing crisis, this shows no sign of letting up.

Navigating the housing crisis

With Australia’s population continuing to grow at a rapid pace, there’s no sign of relief for housing shortages and low rental stock. The national population increased by a record 659,795 people from September 2022 to the same month in 2023.

548,770 individuals migrated here from overseas, so as they’re unlikely to own their own property, they’ll be relying on rental accommodation – at least for the short term. Even the Federal Government’s Housing Accord goal to build 1.2 million new properties over five financial years from mid 2024 is looking like it’s too little, too late. In fact, Australia needs to approve about 80,000 more homes every year in order to meet the new dwellings target and we’re falling woefully behind. This chronic housing shortage is likely to keep driving up property prices and rents throughout 2024.

Again, this presents both challenges and opportunities for potential property investors. By leveraging expert advice and focusing on emerging growth areas, investors can navigate the housing crisis and continue to build a robust property portfolio.

What’s next for the Australian Property Market?

Economists and property experts will all have varying opinions on what the current housing trends means for the future of the Australian property market. From predictions of the market stabilising – along with interest rates, to the possibility of a surge in the market due to ongoing demand and supply, the team at Capital Properties will be keeping our fingers on the pulse of the housing market.

As always, the Capital Properties team are here to support ADF members to become informed investors by providing expert advice, personalised strategies, and access to premium investment opportunities across Australia.

The best place to start is our FREE Capital Properties Discovery Session which will help you identify what you need to start investing and give you an idea of what we bring to the table as property investment specialists. Then our follow up Strategy Sessions will help you create a plan to find your perfect investment and work towards achieving your goals.

You can also click the following links to access our monthly Australian Property Market Report and our free online Property Investment Tools and Apps.

Make the most out of the silly season and book your end/start-of-year review with the Capital Properties team

‘Tis the season to be jolly, and what better way to celebrate than by taking a moment to reflect on your property investment strategy with Capital Properties? As the year draws to an end and a new one about to begin, it’s the perfect time to evaluate your property investments, set new goals, and make any necessary adjustments so you can hit the ground running in 2024.

In this blog post, we invite you to join us for an end/start-of-year review to help secure your financial future for the years to come. So, grab a cold one and let’s explore why a property investment check-up is the best way to close out your year.

The Capital Properties team live and breathe property investment for ADF members, and it’s our mission to make sure we help you achieve your property investment goals to reach future financial security. Our FREE Capital Properties Discovery Session is a great place to start, and we have tools and strategies to help you every step of the way.

On the go? Here’s 30 seconds of take outs:

  • Capital Properties clients use proven property investment strategies to weather the storms and make the most of the opportunities in the Australian Property Market.
  • An end-of-year review will make sure you stay on the path to financial success. The review covers:
    • Lifestyle and financial goals
    • Assessment of current property portfolio
    • Optimisation of property investment strategy
    • New opportunities identified
    • Prep for tax season
  • We’ll also cover latest property data, market analysis, research as well as your cash flow position and explore the options available to you, whether you’re ready to grow your portfolio, or make changes to get you closer to that point.
  • Book your end-of-year review now so you can hit the ground running in 2024.

Keep reading >>

Looking back to look forward

Before we welcome in the new year, it’s only natural to look back at the past one and reflect on the successes and challenges we’ve faced. In 2023, Australian Defence Force (ADF) property investors encountered plenty of opportunities and challenges in the Australian property market. From the highs of unprecedented rental demand in some areas and attractive government initiatives, to the lows of building supply issues and soaring interest rates, we’ve had a hell of a ride.

Capital Properties clients have used our proven property investment strategies to weather the storms and stay ahead of the game with growing portfolios and strong capital growth across all their investments. And we want to see you continue to succeed in 2024 and beyond. That’s why we encourage you to take advantage of a Capital Properties end-of-year review and make sure you stay on the path to financial success.

Why an end-of year review?

The comprehensive Capital Properties end-of-year review will allow you to:

  1. Review your lifestyle and financial goals

It’s easy to get busy and bogged down in the craziness of day-to-day life, especially if they involve training, exercises, and deployments. So, it’s important to speak to someone with an objective view to make sure you are still in line with your goals.

  1. Assess your current property portfolio

Together we can analyse your current property investment(s), assess their performance, and make sure they still align with your financial and lifestyle objectives.

  1. Optimise your property investment strategy

We’ll make sure you stay on track by working with you to optimise your property investment strategy to maximise returns and minimise risks.

  1. Identify new opportunities

The Australian property market is constantly evolving. The Capital Properties experts will help you discover new opportunities that may be worth exploring in the coming year.

  1. Prepare for tax season

According to the Australian Taxation Office (ATO), 9 out of 10 rental property investors make errors in their tax returns, especially when it comes to interest deductions. The Capital Properties team can help you ensure your investments are structured in a tax-efficient manner to avoid facing the wrath of the ATO when it comes to tax time.

What does the end/start-of year review cover?

As well as making sure you have a clear vision of your goals and the strategy you need to get you there, our end of year review will cover some essentials such as:

  1. Latest property data and research

We’ll re-evaluate your investment property(s) cash flow position and comparative market analysis, including:

  • RPdata suburb and statistics reports for each property
  • Residex suburb reports
  • The latest Forecast ID demographic reports
  • Desktop and full valuations
  • Rental manager feedback and reviews
  • Vacancy rates
  1. Strategy development

We’ll look at the options available to you, whether you’re ready to grow your portfolio, or make changes to get you closer to that point. Our finance team will confirm your new borrowing capacity and discuss the next steps. If it suits you better, we can do all, or most of this, over the phone. Your options might include:

  • Option A. Capacity for a new purchase – If you’re in the position to explore your next property investment opportunity, we’ll help you get the ball rolling.
  • Option B. Increasing capacity – If you’re not ready for your next investment just yet we’ll share tips that will increase your capacity and help you get closer to your goals.

Option C. Consolidation – We can help you work out if you should consolidate your finance, find better interest rates, and reduce your investment/personal debt.

What’s next?

We know that the unique demands of Defence life mean you don’t always have time to stay updated and make sure your investment(s) is working the hardest for you. We created the Pinnacle Support Program to make sure you’re supported the whole way through your property investment journey. And we believe the end of the year is the perfect time to evaluate your property investments and set the course for the year ahead.

It’s also a chance for us to say thank you for your continued trust in our team. Your support is greatly valued, and we look forward to celebrating your successes in the years to come.

Get in touch now to book your end-of-year review and make sure you’re still on track to reach your financial and lifestyle goals.

If you’ve got some time, you can check out our FREE Property Investor Tools and Apps and download a copy of our book, Property Investment SOP  – essential reading for all property investors and first home buyers.

Are you ready to take your property investment journey to the next level?

At Capital Properties, we understand that achieving success in property investment requires a strategic approach. That’s why we’re excited to introduce you to the Capital Properties Property Investment Planner.

This 4-in-1 planner is designed to help you reach your goals of successful property investment for future financial security so you can create the life you dream of.

Invest in your future with the Capital Properties Property Investor Planner, the best 4-in-1 planner for property investors in Australia! Then come along to our FREE Capital Properties  Discovery Session where we’ll help you put these plans into action.

Our Property Investment Tools & Apps and Capital Properties Pinnacle Support Program will support you every step of the way.

On the go? Here’s 30 seconds of take outs:

  • As ex-ADF members, Capital Properties understand the barriers and opportunities ADF members face when it comes to property investment.
  • The Capital Properties Property Investment Planner was created by Capital Properties founder, Marcus Westnedge.
  • The user-friendly planner has tools, tips, and strategies to help you stay focused & learn to prioritise goals & tasks.
  • This is Australia’s best property investment planner with daily inspiration, mindset evaluation, hourly schedule, personalised goal setting, and there’s nothing stopping you from starting right now!

Keep reading >>

Designed by ADF Investors, for ADF Investors

The Capital Properties Property Investment Planner was developed by seasoned property investors who understand the challenges and opportunities in the Australian property market, as well as the barriers and opportunities you’ll experience as ADF members.

Marcus Westnedge, the founder and director of Capital Properties, brings a wealth of experience to the world of property investment. He joined the Royal Australian Navy at 17, bought his first property at 19, and built a multimillion-dollar portfolio before leaving the Navy.

He created a 7 step to successful property investment strategy that’s helped thousands of ADF members get on top of their financial literacy and use their disposable income to build generational wealth.

And because Marcus is passionate about helping others achieve property investment success, he’s developed this unique Property Investment Planner to get you started.

What makes this Property Investment planner the best?

It’s not just another generic planner; it’s a roadmap to help you navigate every step of property investment.

This comprehensive planner is packed with tools, tips, and strategies to make sure you stay focused and learn to prioritise goals and tasks like a seasoned property investor. It covers everything you need, including:

  1. Building better habits: Success in property investment starts with cultivating the right habits. Our planner provides insights and exercises to help you stay focused.
  2. Increase productivity: We’ll show you how to maximize your productivity, so you can make the most of your time and resources.
  3. The ‘Well-Formed Outcome’: Learn this specialised goal-setting technique to create a plan of attack and hit each of your targets.
  4. Self-evaluation for success:  Self-awareness is key to successfully setting goals, tracking progress and making necessary adjustments.
  5. Yearly ‘mind map’: A visual mind map helps you maintain clarity and focus on your property investment goals and plans for the year ahead.
  6. Annual budget template: Get a handle on your finances with our accurate annual budget template. Know where your money’s going and plan accordingly.
  7. ‘Personal Action Sheet’ and ‘Personal Action Plan’: Monitor your progress toward your goals with our monthly templates.
  8. Weekly strategy planning:  Consistency is key. Our weekly strategy planning templates make it easy to stay on track.
  9. Daily ‘to-do’ lists: Get stuff done. Each day will bring you closer to your investment goals.

How the Capital Properties Property Investment Planner helps you stay on course

Like every well-executed plan, you need to measure what matters. That’s why our planner is designed to prevent procrastination and keep you focused on your end goal. Here’s why it’s your key to success:

  1. Daily inspiration: You’ll find a dose of inspiration to keep you motivated every day.
  2. Mindset evaluation: Discover what a winning mindset looks like and adjust yours for success.
  3. Hourly schedule: Keep track of your daily activities and create healthy habits that’ll keep you accountable.
  4. Personalised goal setting: Define what success looks like to you. What are your career, financial, and personal goals? Think about family time, spiritual growth, recreation, and your long-term goals.
  5. User friendly: We’re all about helping you achieve success in property investment, so our planner is easy to use and gets you there faster.
  6. Undated: You can start using it right now, no need to wait for a specific date.

Your journey to property investment success starts here. With our Switched-On Strategy Series and Capital Properties Pinnacle Support Program you’ll have the full support of our experienced team.

So, make the first move and make sure you don’t miss out on this opportunity to take control of your property investment future. Purchase your copy of the Capital Properties Property Investment Planner today and set yourself on the path to success.


Interest rates vs Australian property market

It’s not much of a stretch to conclude that if you’re reading this post, you’re a switched-on property investor, or on the way to becoming one. And you’ll no doubt be aware that the Reserve Bank of Australia (RBA) has just delivered its 12th rate hike since May last year, leaving many homeowners reeling. It’s estimated that the average Aussie borrower is now paying an additional $15,000 per year on their mortgage compared to 13 months ago. And some analysts predict that further interest hikes could continue in the coming months unless there’s a major downturn in inflation.

In this article, we’ll explore what the soaring interest rates means for the current Australian Property Market and what opportunities it may present. To do this, we’ll compare this time with challenges the market’s faced in the past.

Attending our free Capital Properties Discovery Session can help you discover when’s the best time for you to invest in the property market. We can make sure you’re ready so you can avoid any pitfalls, and help you take advantage of the opportunities that are out there.

On the go? Here’s 30 seconds of take outs:

  • The RBA has just delivered its 12th rate hike since May 2022.
  • Typical borrowers are paying $15,000 yearly more than 13 months ago.
  • Do you see ‘opportunity is nowhere’? Or ‘opportunity is now here’?
  • The 1991 recession caused multiple bankruptcies and soaring unemployment.
  • The 2008 GFC saw property prices fall initially, but a quick recovery due to government stimulus packages.
  • COVID-19 in 2020 saw growth in ‘lifestyle’ markets but the subsequent inflation caused current interest rate rises.
  • There are opportunities with migration, ongoing demand for rental properties, inter-state travel & lifestyle drivers.

Keep reading >>

The difference is perspective

In our March 2020 blog post ‘OPPORTUNITYISNOWHERE’ we talked about how the COVID-19 pandemic saw an unprecedented economic down turn and how that immediately affected the Australian property market. The strong start in the first few months of 2020 didn’t last long, with sales falling dramatically, making many investors nervous. In that blog post we also said that it’s “important to remember is that this phase will pass, and we will eventually get through to the other side”.

While some investors sat and waited for the storm to pass, there were others, Capital Properties included, that had a different perspective. It would have been easy to join the crowds predicting disaster, but instead we saw the potential in the great interstate migrate and the big shift towards the ideal Australian lifestyle. As we’ve said before: “Some people will see ‘opportunity is nowhere’, others will see ‘opportunity is now here. The difference is perspective.”

Current market compared with previous downturns

st as we did in the previous ‘OPPORTUNITYISNOWHERE’ post, we’ll compare this current slump to previous downturns. Because it’s a timely reminder to keep the big picture in mind as we assess the outlook for the property market for the rest of this year and apply the lessons we’ve learned that have helped us navigate these tricky markets before.


1991 recession drivers:

High rates of inflation

Inflation is the rise in overall prices of goods and services over time. We explain inflation in greater detail in this blog post (click here). The common effects of inflation are:

  • Rising prices reducing the purchasing power of some consumers (usually low-income earners), distorting purchasing power of others (high-income earners) to encourage spending, causing more inflation.
  • The cost of borrowing increases for new loans, but people with existing loans have the benefit of repaying these with inflated money.

Initial reduced unemployment turned to prolonged acceptance of higher inflation that sets off an spiral of price hikes and demand for pay increases, leading to increased unemployment.

High rate of account deficit

An account deficit happens when a country sends more money overseas than it receives from abroad. The largest component of an account deficit is usually a trade deficit, which means that a country buys more than it sells. If an account deficit remains on the books for a long time, it can mean future generations will be burdened with high debt levels and large interest payments.

1991 recession effects:

  • Many businesses went bankrupt and some of the major banks almost went under.
  • Unemployment rose from 5.8% to 11.2%


The global financial crisis (GFC) came about because of relaxed lending standards by the banks, which ultimately resulted in many US and European banks dissolve into bankruptcy.  Predictably, this caused the stock market to crash, and people could no longer access finance. This led to the greatest economic downturn in the US history since the 1930’s Great Depression. And ultimately the fallout created a global economic meltdown.

‘But you can’t borrow your way to a good time forever, and this recent example of a credit-fuelled boom was no exception’ – Luci Ellis. Head of Financial Stability Department. Reserve Bank of Australia.

2008 global financial crisis drivers:

  • Human psychology: When times are good, perceptions of risk diminish.
  • Lending standards eased.
  • High loan-to-value ratio loans.
  • Lo doc loans common.
  • High household debt.

2008 global financial crisis effects:

  • All capital cities in Australia saw property prices fall but the government created relief measures including First Home Buyer stimulus’ (aka the 5% deposit scheme).
  • As the stimulus took effect, housing prices recovered, so it was a very short sharp downturn in the housing market and the recovery in Australia was quite rapid.


The world hadn’t seen a pandemic like COVID-19 since the 1918 – 1920 Spanish flu. Although the World Health Organisation tried to guide us through it, each country, and in Australia’s case, each State and Territory, handled the pandemic differently. Overseas migration stopped abruptly, so population growth was dramatically reduced. That meant less demand for houses, and particularly rental properties.

2020 COVID-19 pandemic outcome:

  • Government enforced travel restrictions, internationally, nationally and locally.
  • Burden on public services, e.g. healthcare, police.
  • Public health measures = closure of building sites, reduced labour, no house opens, material shortages etc.

2020 COVID-19 pandemic effects:

  • Government stimulus packages including the Job Keeper subsidy and rental assistance package helped initial confidence.
  • Unprecedented early growth in ‘lifestyle’ markets (driven by work from home) gave way to post-pandemic declining property values.
  • The recovery effort to reduce inflation has resulted in current interest rate rises.


It’s not surprising that some property investors are stalling and more seem to be bailing. Although the reason for recent increased investor sales isn’t clear, it’s assumed some are due to the increased interest burden, though another driver is certainly capital growth in some still-strong markets.

Although (somewhat unbelievably) further rate hikes are still a possibility, there are still opportunities to be found.

  • Migration: We’re on track for a huge migration boom with more than 400,000 new immigrants expected to arrive in 2023.
  • Current and future strong demand for rental properties.
  • Inter-state travel & lifestyle drivers.
  • Capital gains in high growth areas.

The Capital Properties team have the experience and expertise to help you take advantage of opportunities in the property market. Book a FREE Discovery Session to learn how a strategic approach to property investment can help you create a secure and successful financial future.

Capital Properties

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