Australia’s Housing Market Post-COVID: Trends, Growth & Buyer Opportunities

The COVID-19 epidemic has caused substantial changes in the Australian property market; these patterns should influence the industry over the next five years.   The most recent data from CoreLogic reveal the clear shifts in migration patterns, affordability, and house pricing, and how these factors have fundamentally altered the real estate scene.

Governmental Objectives

The Australian government hopes that this new method will improve its citizens' prospects of becoming homeowners.   The opposition likewise proposes this plan, which tries to limit competition from foreigners, who, as many Australians have pointed out, are mostly responsible for rising property market prices.

Julie Collins confirmed the limitation, stating that it is only one small component of a larger strategy aimed at increasing the availability and affordability of housing for local buyers.   Nonetheless, other Australian properties argue that the extremely small international investment component arising from the highly restricted investment alternatives available to foreigners will have little influence from the revisions.

Changing Foreign Investment Patterns

1. Globally, Australian real estate investments during recent years have been very drastically declining:

2. The allowed investment value in residential real estate plummeted by 15% over the past year; the percentage of foreign investors in the Australian real estate market dropped to 0.4% in 2024.

3. Previously the most significant group of foreign investors, Chinese and Hong Kong cut their investment from $4 billion to $3 billion in 2024.  

4. Sales of foreign-funded homes also saw a sharp decline, impacting upcoming construction projects.  

Capital Cities with the Highest Price Growth

In a surprising turn, Adelaide, Perth, and Brisbane surpassed Sydney and Melbourne in terms of growth rate for capital cities: 

- Perth - recorded the highest growth in median dwelling value with an increase of $348,519. 

- Adelaide - home values increased by $347,092, now sitting at two-thirds. 

- Brisbane - achieved the highest dollar value growth in median property value, boasting an increase of $364,305, making it the second most expensive city after Sydney. 

Due to extended lockdowns as well as moving economic conditions, Melbourne lagged in growth sitting at 8.4% with residents moving to other states or regional areas.

Affordability and Interest Rate Challenges

Despite the rapid growth in property values, these issues are becoming easier for a growing number of Australians to consider. The rate of wage growth compared to the increase in the price of housing makes achieving home ownership increasingly difficult. 

While migration patterns appear to be stabilizing, the sustained high interest rates are likely to continue impacting buyer confidence and investment activity. Market analysts propose that the extreme volatility that defined the previous five years is coming to an end, albeit at the mercy of economic conditions… which will control the next phase of the property market trends.

Looking into the Future: What Buyers Need To Think About

During the transition to a more stabilized market, factors such as affordability, interest rate policies, and the economy will still have their impact. There are still opportunities in regional and capital city markets for buyers and investors with a well-thought-out plan or strategy.

“Foreign buyers have been slowly withdrawing for years,a more difficult issue facing the market is a dearth of suitable homes”

While the property market has shifted quite dramatically after COVID-19, having the right financial plan can help you capitalize on opportunities still present in the market. Let OM Financials help you make smarter choices for your property investments. Call 478 876 967 /book an appointment for strategic mortgage guidance.