How To Know If It’s The Right Time To Enter The Property Market In Australia

Knowing it is a good time to buy a property in Australia can feel overwhelming. With rising prices, shifting interest rates and ongoing supply shortages, timing your move requires more than intuition. Buyers need a clear understanding of market conditions, affordability pressures and long-term readiness. While no one can predict the Australian property market with complete certainty, understanding the key indicators can make the decision far clearer. Factors such as rental demand, vacancy rates, construction activity, government incentives and regional growth trends all play a crucial role in shaping buying conditions. 

By evaluating these elements alongside your personal financial readiness, such as deposit strength, borrowing capacity and long-term stability, you can confidently assess whether entering the market now aligns with your goals or if waiting may offer a better opportunity. This guide brings together data, trends and practical insights to help you make an informed decision about whether now is the right time to buy.

1. Market Fundamentals: Demand, Supply and Financing

Understanding whether it is a good time to buy a property in the Australian market starts with analysing three core pillars: demand, supply and financing conditions.

According to the latest available data:

• Australia has $11.4 million dwellings, reflecting the size of the national housing stock.
• Residential real estate is valued at $12.0 trillion, making it the country’s largest asset class.
• Outstanding mortgage debt stands at $2.5 trillion, underscoring the extent to which lending underpins the property sector.
• Household wealth held in housing accounts for 55.5%, highlighting how deeply property is tied to financial well-being in Australia.
• Total property sales per year reach 544,481 with a gross sales value of $530.4 billion.

These figures show that Australia’s housing market remains one of the largest and most influential components of the national economy, supported by strong demand and high household exposure to property.

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Annual home value growth reached 6.1% in the twelve months to November 2025, reflecting steady upward momentum across the country.

Across the market segments:

• Combined capitals grew by 5.6%
• Combined regionals outperformed with 7.5% growth

Among individual regions:

• Brisbane recorded 10.8% annual growth, reflecting one of the strongest performances among capital cities.
• Adelaide grew 6.7%, supported by steady buyer demand and limited housing supply.
• Sydney increased 4.0%, indicating a moderate recovery in a previously cooling market.
• Melbourne 3.3%, showing gradual improvement despite higher borrowing costs.
• Perth surged 9.4%, highlighting strong population growth and tight supply conditions.
• Darwin grew 15.4%, marking the highest annual rise among capitals.
• Hobart grew by 2.4%, demonstrating more stable, modest market momentum.
• Regional Queensland achieved 10.1% growth, driven by lifestyle demand and migration.
• Regional South Australia recorded 10.5% growth, reflecting strong regional appeal.
• Regional Western Australia posted 13.5% growth, the strongest regional market performer.
• Regional Tasmania grew 4.1%, showing steady demand in key lifestyle pockets.
• Regional Northern Territory 2.9%, indicating stable but slower-paced growth.
• Regional New South Wales grew 5.2%, supported by resilient demand beyond Sydney’s urban fringe.

These figures highlight that regional markets are currently outperforming capitals, with several areas, especially Perth, Regional WA and Regional SA, seeing double-digit annual growth. If you’re considering buying an investment property in Australia, whether in Victoria, Melbourne, Sydney, Brisbane, Queensland, Perth or other growing regions, make sure to research local market trends and rental demand carefully.

2. Affordability, Risk and Personal Readiness

Although market fundamentals may appear strong, affordability remains a major concern for many Australians. Home prices are at record highs across major capitals and saving for a deposit can take several years, especially in cities like Sydney and Melbourne. Supply shortages and lagging building approvals are likely to keep pressure on prices through 2026. Rental markets also remain extremely tight, with low vacancy rates increasing demand from both renters and investors.

Before entering the market, it’s important to evaluate your personal financial readiness. This includes understanding your borrowing capacity, job stability, repayment comfort and ability to manage long-term financial commitments. A strong personal foundation is crucial, even when the market environment looks favourable. At this stage, many buyers choose to consult an investment property buyer's agent to help ensure they make well-informed, financially sound decisions.

3. Phase of the Property Cycle: Where Are We Now?

The Australian property market generally moves through phases: recovery, growth, moderation and correction. In 2025, the market remains firmly in the growth phase, though signs of moderation are emerging amid affordability pressures. Prices are still increasing, but not at the rapid pace seen during earlier boom years. This means buyers can still benefit from long-term value growth, but should do so with realistic expectations. There are no strong indicators of a correction, but the pace of price increases may slow in the coming years. Understanding this cycle helps set clear expectations, for it is a good time to buy a property based on your long-term goals rather than short-term price movements.

4. What the Latest Data Tells Us

Momentum in the annual trend has also continued to build, with dwelling values up 6.1% over the 12 months to November, rising from a recent low of 3.9% over the 2025/26 Financial Year. These figures demonstrate a market supported by strong demand and limited supply. However, the elevated price levels mean buyers must carefully assess whether their financial foundation is strong enough to enter at this stage.

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5. Your Checklist Before Pulling the Trigger

Before you decide it is a good time to buy a property for your situation, use these questions to assess your personal readiness. The more questions you can confidently answer “yes” to, the stronger your position will be.

These questions serve as a practical readiness guide, helping you make a decision that aligns with your financial goals and long-term plans.

Should You Invest in Capitals or Regional Areas?

When deciding where to buy property in Australia, one key consideration is whether to focus on major capital cities or regional areas. Capitals like Sydney, Melbourne, Perth, Hobart and Brisbane often offer strong rental demand, well-developed infrastructure and more stable long-term growth, driven by population density and employment opportunities. They are ideal for buyers seeking security and consistent returns.

On the other hand, regional areas such as the Sunshine Coast, Ballarat or Geelong offer more affordable entry points and greater growth potential as these locations expand. Markets across Regional Queensland, Regional South Australia and Regional Western Australia are also showing strong momentum according to recent data, with rising demand in several emerging areas. Regional markets are increasingly attractive for lifestyle buyers and remote workers, which can drive demand in these fast-growing pockets.

According to the recent data:

• Regional Northern Territory recorded 2.9% growth, indicating moderate but stable market conditions.
• Regional Tasmania saw 4.1% growth, showing steady interest from lifestyle buyers and interstate movers.
• Regional Western Australia led the nation with 13.5% annual growth, supported by strong demand and limited housing supply.
• Regional South Australia achieved 10.5% growth, ranking among the highest-performing regional areas in the country.
• Regional Queensland recorded 10.1% annual home value growth, reflecting strong momentum across lifestyle-driven markets.
• Regional Victoria recorded 4.5% annual growth, aligning with strong buyer activity across popular lifestyle and commuter towns.
• Regional New South Wales experienced 5.2% annual growth, driven by demand in key coastal and commuter regions.

Ultimately, the choice depends on your investment goals. If your priority is stability and long-term rental demand, capital may be a better fit. If you are looking for affordability and growth potential, regional areas could be the right fit, but careful research into local trends is essential.

Pros and Cons

Capital Cities

• Pros: Strong rental demand, stable long-term growth, well-developed infrastructure and more job opportunities.
• Cons: High property prices, smaller short-term growth potential and can be more affected by interest rate changes.

Regional Areas

• Pros: More affordable entry, potential for faster growth, lifestyle appeal and increasing demand from remote workers.
• Cons: Lower liquidity, variable rental demand and less developed infrastructure in some areas.

Final Conclusion

Buying property in Australia during 2025-26 can be a strategic and rewarding decision, but only when market conditions align with your personal readiness. The data shows that prices continue to rise, supply remains tight and rental markets are strong. These factors create a supportive environment for long-term buyers. However, affordability challenges mean timing alone cannot drive your decision. A substantial deposit, manageable loan repayments, realistic expectations and a long-term outlook are essential. If these elements are in place, it might be the correct answer to “it is a good time to buy a property” for you. If not, waiting until your financial position strengthens may be the wiser path.

It is also where professional guidance becomes valuable. PropXperts, as a dedicated buyer’s agency specialising in data-driven property research and personalised acquisition strategies, helps buyers navigate complex market cycles with confidence. Their expertise in identifying high-growth locations, evaluating long-term investment potential and managing the entire buying process can provide clarity in a market that often feels overwhelming.