Investors drive property markets in Australia

While property markets in WA, South East Queensland (SEQ) and Northern

Adelaide have posted strong, investor-fuelled gains over the past five years,

Victoria’s housing market has stalled—until recently.

Victoria Slowdown

Victoria introduced increased land tax and short-stay (Airbnb-style) taxes

several years ago—along with added levies to support state budget

revenue—which discouraged investors.

The result: roughly three years of little to negative growth across Victoria's

markets, with Melbourne recording its first annual decline since the

pandemic—down around 2–3% in 2024.

Rental markets weakened: rents dropped in 30+ suburbs, and many landlords

exited the market due to rising costs.

Green Shoots Appear

Since late 2024, momentum has shifted. Melbourne has recorded four

consecutive months of growth in 2025, with June alone showing a 0.3%

rise—bringing annual values back to +1%.

Analysts now highlight preboom conditions: hotspots like Sunbury,

Craigieburn, Werribee, Deer Park, Docklands, Richmond, and St Kilda are

showing strong signs of renewed investor interest.

Forecasts suggest +6% growth in 2026 for Victoria, with projections of

3.5–4.7% growth in 2025–26.

Investor-fuelled Momentum: WA, SEQ; Northern Adelaide

Western Australia (WA) – Perth & Regions

Over the past five years, WA has seen home values rise approximately 79%,

driven by strong investor demand.

Perth posted double-digit gains in 2024—around 8–10%—with some suburbs

seeing 20%+ annual growth.

Investors were drawn to affordability, rental yield, and population

growth—pushing listing volumes down and prices up.

South East Queensland (SEQ)

SEQ has been a magnet for investors, with regional markets in QLD seeing

9.2% annual growth.

Hotspots such as Toowoomba, Burnett, Springfield, Redbank, Brisbane, the

Gold Coast, and Sunshine Coast rank among the top-performing markets.

Northern Adelaide; Greater SA

Greater Adelaide median house prices climbed nearly 75% in five years to

around $835,000, while unit price increases hit 64.8%.

In 2024, Adelaide property values rose ~14.4%, with forecasts expecting

another 7–9% in 2025.

What This Tells Us About Investors and Market Health

1. Investors drive competition and supply

In WA, SEQ, and Adelaide, investor interest fuelled bidding wars, pushed

prices up, and encouraged developers to build—expanding housing options.

2. Policy can either choke or enable markets

Victoria’s tougher taxes slowed investor inflow and dampened development.

When investor numbers dropped, supply tightened, rentals became scarce,

and price growth stalled.

3. Even star markets stall without investor support

Melbourne, despite being one of the world’s most liveable cities, couldn’t

escape three years of stagnation once investors pulled back.

4. Revival is underway

Now that investors are circling back—attracted by affordability, improved

policy clarity, and rate cuts—Melbourne is entering a new growth phase.

The Takeaway: Investors Hold the Key

Victoria’s recent trajectory is instructive. Strong investor inflows from 2015–2021

supported rising values; from 2022–2024, disincentives stalled the market. Now, as

policy and investor sentiment align, recovery is underway.

Investors don’t just chase hot regions—they ignite them. They fuel bidding, fund

development, and supply rental stock for tenants. When policy settings drive

investors away, markets slow—even in globally liveable cities like Melbourne. But

when welcomed back with balance and transparency, they spark rebounds.

Victoria’s green shoots are proof: with investors returning, even markets that have

lagged can regain traction. The broader lesson? A property cycle doesn’t end with

owner-occupiers and renters—it thrives with all three participants engaged.