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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Restored Victorian Italianate manor Earlswood combines two substantial residences on 778sqm and leads the prestige offering from the newly established Ray White Phillips & Co.
3 min
Alexander Phillips has unveiled his first newly launched trophy campaign since establishing Ray White Phillips & Co, with the landmark Randwick estate Earlswood being offered with a guide of $10.5 million.
The listing is an early statement for Phillips’ new Woollahra-based agency. Less than a month after opening, Ray White Phillips & Co had already secured more than $30 million across a series of booked auction campaigns, including the $9 million sale of 92 Ocean Street, Bondi, and sales in Waverley, Bronte, Clovelly, Paddington and Coogee.
Phillips also recently sold 9 Kenneth Street, Tamarama, for $20.25 million, the highest reported Eastern Beaches sale of 2026.
The latest addition to the agency’s books is one of the eastern suburbs’ more distinctive estates.
Occupying 778 sqm at 54 Dutruc Street, Earlswood pairs a restored Victorian Italianate manor with an adjoining two-storey contemporary residence designed by X-PACE Design Group.
The original home was built in 1891 and is a locally listed heritage residence within Randwick’s St Marks conservation area. Its restoration retains much of the formality and detail expected of a grand Victorian property, including a substantial entrance foyer, frescoes by Augusto Lorenzini, four-metre ceilings, marble fireplaces and a series of reception and entertaining rooms.
Four king-sized bedrooms are arranged on one level, while an attic retreat captures views towards the ocean. More recent additions include a custom kitchen with Gaggenau appliances, a butler’s pantry, Spotted Gum floors and ducted air-conditioning.
Next door, the second residence takes a distinctly contemporary approach. Off-form concrete, wide oak floorboards and clean architectural lines establish a deliberate contrast with the ornate historic manor.
The modern home contains three upper-level ensuite bedrooms, two living areas, a designer kitchen, courtyard and north-facing rooftop terrace. Villeroy & Boch-appointed terrazzo bathrooms and Italian lighting continue the detailed finish found throughout the estate.
Although architecturally different, the two homes have been designed to operate together or independently. Each has its own entrance, while both connect to a four-car basement containing a vehicle turntable, wine cellar and internal lift access.
The configuration lends itself to multigenerational living, accommodation for adult children or extended family, or a principal residence with a separate income-producing home. The properties have also been prepared for possible future title subdivision, subject to council approval.
The estate spans approximately 717sqm of internal floor area and has a 39-metre frontage to Rae Street, as well as landscaped gardens and dual-street access. It last changed hands for $10.75 million in November 2023, according to publicly available property records.
Earlswood arrives as Phillips begins the next phase of a 24-year career in Sydney’s eastern suburbs. He has been ranked among Australia’s leading residential agents for more than a decade, with his team reported to transact more than $1 billion in property annually across more than 400 clients.
Phillips said his decision to launch Ray White Phillips & Co was driven by the industry’s increasing reliance on technology, data and network reach, while maintaining his team’s focus on the eastern suburbs.
For Ray White, Earlswood provides an appropriately high-profile introduction to its newest prestige operation: a rare dual-residence property that offers both a carefully preserved piece of Randwick’s history and a markedly contemporary way of living.
Earlswood at 54 Dutruc Street, Randwick, is being marketed by Alexander Phillips of Ray White Phillips & Co through expressions of interest closing November 5.
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