Another financial year has come to a close, and Australian residential property has once again demonstrated why it remains one of the nation’s most trusted long-term investments.
Australia’s titanic $12.7 trillion housing market delivered an impressive annual growth of 7.3% for homeowners and investors, according to property data firm Cotality. In comparison, Morningstar data shows the All-Ordinaries Index returned just 2.43% over the FY2025-26 period. This standout performance highlights the undeniable strength and long-term security of property.
Driving Ahead: Exceptional Growth Across the Nation
Property owners continued to benefit from solid market performance throughout the year. As Angus Raine, Executive Chairman of Raine & Horne, noted, residential property once again outperformed the local share market, highlighting its long-term value.
- Outperforming Shares: Residential property delivered stronger annual returns than the Australian share market.
- Leading Capital Cities: Perth led the nation with annual growth of 23.9%, followed by Darwin (19.8%) and Brisbane (17.4%).
- Regional Markets Remain Resilient: Combined regional property values increased 11.0% over the financial year, reflecting continued demand beyond the capital cities.
Navigating the New Landscape: Opportunities for Savvy Buyers
Periods of policy change open the door for well-prepared buyers. With a more balanced market, buyers now have greater choice and stronger negotiating power. For those taking a long-term approach, this is the perfect time to secure quality assets on better terms.
A Great Entry Point for First-Time Homebuyers
The Federal Government’s First Home Buyer Guarantee continues to make home ownership more accessible for eligible buyers. With as little as a 5% deposit, purchasers can enter the market without paying lenders’ mortgage insurance (LMI), significantly reducing upfront costs.
Combined with improving market conditions, the scheme provides first-home buyers with a valuable opportunity to secure their place in the property market.
The Perfect Environment for “Smart Money”
Angus Raine believes periods of market transition often reward buyers who focus on long-term outcomes.
“This is the time for the classic counter-cyclical play. This is what the smart money does.”
Whether you’re purchasing your first home or expanding your investment portfolio, taking a long-term view can help uncover opportunities that may not be available in stronger seller’s markets.
Disclaimer: The information presented above is for illustration and discussion only. Any party seeking to rely on the content or otherwise should conduct its due diligence and inquiries to ensure that it is relevant to its personal and business needs and circumstances.