Why the next three years could be the best time to invest in property
Stable rates, tight supply and improving confidence are creating a rare three-year window for strategic property investment.
4 min
After the RBA failed to cut interest rates earlier this month, many Australians are still sitting on the sidelines, waiting for “the right time” to buy.
But as every experienced investor knows, there’s rarely a perfect moment. Only windows where fundamentals align.
The next three years look to be one of those windows. This period represents a great opportunity to step into the market strategically, supported by strong long-term tailwinds and a more stable lending environment.
Supply is tight and that’s not changing anytime soon
Australia’s housing shortage has become structural.
The government’s target of 1.2 million new homes by 2029 is already slipping out of reach, with completions tracking closer to 160,000 per year.
Construction costs, planning bottlenecks, and labour shortages continue to restrict new supply, while population growth and immigration remain high.
Australian market snapshot
Perth (WA)
4,251 listings (week ending 1 Jun 2025)
2,832 listings (Oct 2025) ↓ 40 % YoY; sales ↓ 3.1 %; median days on market ≈ 12
Significant supply contraction
Despite small weekly lifts, total stock remains 40 % below 2024. Homes under the median are selling within days.
Brisbane (QLD)
Median value $945 k; monthly growth 1.5 %
Median value $992,864 (+1.8 % MoM, +10.8 % YoY); unit listings 45 % below 5-yr avg
Tight supply + rising prices
Affordable pockets < $1 m remain highly competitive. Demand concentrated around family suburbs.
Melbourne (VIC)
Listings below 5-yr avg; mild buyer hesitancy
Supply still below 5-yr avg; tight in inner east, north & inner west
Selective undersupply
Now Australia’s most affordable capital on income-to-debt ratio. Tight supply in established suburbs positions it for rebound.
Across Perth, Brisbane and Melbourne, in particular, demand continues to outstrip supply, a formula for steady, sustainable growth rather than speculation.
In Perth, listings have fallen roughly 40% year-on-year, and properties are turning over in just 12 days on average, the fastest market in the country.
For Brisbane, supply remains well below normal, particularly under $1 million, where investors and first-home buyers overlap.
And in Melbourne, affordability is now the best in the country, with tight supply in key inner corridors setting up for a cyclical recovery as rates stabilise.
Confidence is returning
After two years of turbulence, the rate environment has finally steadied. Most lenders now sit between 5.3% and 5.6%, roughly 1% lower than a year ago.
On an average $800,000 loan, that’s about $8,000 in annual savings, a meaningful improvement to serviceability and household cash flow.
While no one expects large cuts in the short term, the broader shift will breed confidence.
Borrowers who were cautious in 2023–24 are re-entering the market with renewed clarity around repayments and borrowing power.
This is an ideal time to re-engage clients who paused during the rate-rise cycle. With the right structuring, many can now step forward without over-stretching.
Demand, supply & location
In a market where many investors fixate on short-term yields, it’s critical to bring clients back to fundamentals.
The best opportunities over the next three years will be in locations with strong demand drivers, limited supply, and genuine affordability.
Strong demand drivers
Focus on markets backed by tangible fundamentals, infrastructure investment, job growth, and migration inflows. Areas with improving economies and active employment hubs consistently attract owner-occupiers, which supports long-term value.
Limited incoming supply + affordability
When affordability and low supply align, upward price pressure follows. Australia is currently building only around 160,000 new dwellings per year, well below the 240,000 needed to meet national targets. Markets with low construction pipelines and accessible entry prices are positioned for sustained growth.
Location and value-creation potential
Established, owner-occupied suburbs tend to outperform because they’re insulated from large-scale supply shocks.
Look for houses or properties with strong land content, ideally a 50 % or higher land-to-asset ratio and those that allow for renovations, granny-flat additions, or subdivisions over time.
While every market will move through its own cycle, the next three years should continue to deliver solid opportunities across Australia, particularly in locations where supply is tight, economies are strong, and demand is anchored by real fundamentals.
The market is resetting its risk profile
Macquarie Bank’s recent decision to halt lending to new property purchases in trust structures could also change parts of the investor market.
While it may slow activity in investment-heavy markets, it’s unlikely to affect demand in locations where most of the activity is driven by home buyers.
These areas are largely found within the major capital cities, and even in some of the smaller capitals with growing owner-occupier bases.
When assessing these markets, it’s important to look at the local economy, the industries that support employment, infrastructure investment, and migration.
Even indicators like Gross State Product (GSP) can provide valuable insight into the health of the local market and its resilience to policy changes.
This shift reinforces the importance of sticking to fundamentals such as strong economies, real demand, and sustainable affordability, not investor-driven locations.
Thinking long-term
The next three years won’t be about chasing quick gains.
They’ll be about steady, compounding growth driven by constrained supply, stable rates, and solid demand. Property wealth isn’t about speculation, it’s about structure, patience, and the discipline of buying the right asset and holding it through cycles.
If you’re considering entering the market, now is the time to act. Stable rates, limited supply, and improving affordability create a strong foundation for the next property cycle.
Abdullah Nouh is the Founder and Director of Mecca Property Group, one of Australia’s leading buyers’ agencies specialising in high-growth residential and commercial investments.
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The Sydney developer-builder, which typically retains its projects, is offering 54 residences off the plan on Spencer Street, with prices starting at $3.9 million.
HSN Property Group has launched Maison Jolene in Rose Bay, giving buyers a rare opportunity to purchase off the plan from a developer-builder that has spent more than two decades building a predominantly build-to-hold portfolio in Sydney’s eastern suburbs. HSN values that portfolio at $4 billion.
Located at 2–16 Spencer Street, Maison Jolene comprises 54 residences, including house-sized two- and three-bedroom apartments, sub-penthouses and penthouses. Prices start at $3.9 million, according to HSN, with many residences designed to capture views across Rose Bay, Sydney Harbour and the city skyline.
James Nixon, head of projects at The Rubinstein Group, is handling the sales campaign alongside agency founder Gavin Rubinstein. He says the launch is an unusual opportunity for buyers who have followed the developer’s work.
“HSN is renowned for building entire projects and rarely selling a single apartment to the open market, so Maison Jolene really is a first for potential buyers who have been following the brand across previous projects,” Nixon says.
HSN worked with architecture practice MHN Design Union and interiors studio The Unlisted Collective on the development. A rhythm of arches and deep-set openings gives the building its presence on Spencer Street, while the residences are positioned to make the most of natural light, privacy and outlook. Landscaping frames the arrival and carries through to the shared outdoor spaces.
“Maison Jolene was conceived to bring a touch of European elegance to Rose Bay, drawing on the understated charm of Mayfair and the romance of Paris while remaining grounded in the relaxed character of Sydney’s eastern suburbs,” says Rafi Assouline, founder and director of HSN Property Group.
The apartments were designed with established Rose Bay downsizers in mind. Large kitchens, generous storage and flexible living areas are intended to ease the move from a family home, with layouts that can also accommodate families and professionals looking for more space in an apartment.
The shared amenities are designed as an extension of those homes. Residents will have access to a lounge, private dining room and landscaped alfresco entertaining area. A wellness retreat brings together a magnesium pool, cold plunge, sauna, steam room and heated stone recovery bench, alongside a gym and dedicated space for Pilates and yoga.
Inside the apartments, the curves of the façade recur in the cabinetry and balustrades. Custom wall sconces, tapware and patterned parquetry sit alongside carved marble basins, hammered-glass shower screens and recessed stone niches. Timber veneer wardrobes have leather-clad drawers, while an Art Deco-inspired motif appears in the raised ceiling detail, joinery and built-in velvet bedheads.
“Maison Jolene is at once contemporary and old world, with custom-designed parquetry flooring and an art deco-inspired motif juxtaposing with the curvature of the arched facade, balustrade and internal cabinetry,” Assouline says.
The kitchens bring several of those ideas together in a sculptural, bubble-shaped island. Assouline helped design and engineer the curved form and personally selected the marble, which is bookmatched so the veining mirrors across adjoining pieces.
“With each of our projects, I look for symmetry in design,” he says. “Crafting the apartments is like solving a puzzle of one thousand pieces; one little detail wrong could mean the picture doesn’t translate correctly once it’s finished.”
HSN will develop and build Maison Jolene, overseeing the project from design through to construction. The family-owned company says it has delivered more than 270 homes, has 200 apartments under construction and has a 100 per cent completion record.
“As a private, integrated developer-builder, we maintain close control over every stage of a project,” Assouline says. “We see our projects as collaborative partnerships with our architects, interior designers and specialist trades with whom we have refined a very unique aesthetic, to ensure every detail is considered for those who will live there.”
For Nixon, the developer’s involvement in both design and construction is part of the pitch to buyers. “The attention to design excellence, combined with HSN’s proven track record in delivering ultra-high-end developments, ensures a level of rarity and enduring quality seldom seen in today’s market,” he says.
“To purchase an HSN property is to acquire a property that will not just hold its value but stand the test of time as a timeless piece of Sydney real estate.”
The Spencer Street address puts residents close to Rose Bay’s village cafés and restaurants, foreshore walks and ferry service, with beaches, golf courses and schools nearby. Maison Jolene is now selling off the plan through James Nixon and Gavin Rubinstein.
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