Growth, Challenges, and the Role of Investors

In Brisbane, the median house price surpassed $1 million for the first time during the December quarter, while the median unit price reached a new high of $633,000.

The report reveals that the pace of price growth slowed down nationwide in the December quarter. In Perth, after a significant rise in house prices in 2024, buyers shifted towards the unit market, leading to a 5.4% increase in unit prices during the quarter. Across all capital cities, affordability pressures led to increases in median unit prices: Darwin saw a 4.4% rise, Melbourne 2.1%, Brisbane 1.8%, Hobart 1.5%, Adelaide 0.6%, and Sydney 0.4%.

- Hotspotting

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Investors Key to Solving Housing Shortage

New research suggests that attracting more investors to the property market is crucial to addressing Australia’s housing crisis. According to the Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA), there is a significant shortage of property investors, with tens of thousands more needed to help alleviate ongoing market challenges. Over the past five years, Australia has seen a shortfall of nearly 35,000 property investors.

From March 2019 to March 2024, Australia’s population grew by 1.8 million people, creating the need for an additional 212,000 rental properties. This requires 145,000 more investors, yet data from the Australian Taxation Office (ATO) shows that only about 111,000 new investors entered the market.

PIPA chair Nicola McDougall points to several barriers that are limiting investor participation, including stricter lending policies, regulatory changes, and tax increases. PICA chair Ben Kingsley emphasizes that investor activity is far below what is needed to accommodate Australia’s expanding population.

- Hotspotting