What We’re Watching Closely in the Property Market This Year
At the start of every year, the property market comes with no shortage of predictions, headlines, and noise. Some are helpful. Many are not.
At Crest Property Investments, we take a more measured approach. Instead of reacting to every headline, we focus on the underlying drivers that shape property values, rental demand, and long-term performance.
Here are the key factors we’re watching closely this year – and why they matter for buyers and investors.
1. Interest Rate Direction
After a period of rate rises and stability, attention has now turned to what comes next.
Even small changes in interest rates can have a meaningful impact on:
- Borrowing capacity
- Buyer confidence
- Market activity
If rates begin to ease later in the year, it could trigger increased competition and renewed price momentum — especially in affordable and high-demand areas.
2. Housing Supply (or Lack of It)
One of the most important forces in today’s market is the ongoing shortage of housing.
New home construction continues to lag behind population growth, particularly in Melbourne and major regional centres. This imbalance is supporting:
- Higher rents
- Strong tenant demand
- Upward pressure on prices over time
Until supply meaningfully improves, well-located properties are likely to remain in demand.
3. Population and Migration Trends
Australia’s population growth remains strong, driven largely by migration. Most new arrivals enter the rental market first, which increases demand for housing across both metropolitan and regional areas.
This ongoing growth underpins both rental conditions and longer-term price stability.
4. Buyer and Investor Confidence
Confidence doesn’t shift overnight – it builds gradually. As economic conditions stabilise and borrowing conditions improve, we’re watching how:
- First home buyers return to the market
- Investors begin to re-enter
- Upgraders start making moves
These shifts often happen quietly before they show up in price growth.
5. Demand for Brand-New Homes
Modern buyers and tenants are increasingly prioritising:
- Energy efficiency
- Low maintenance
- Contemporary design
This continues to drive demand for brand-new and off the plan properties, particularly in growth corridors and new communities where infrastructure and lifestyle are improving.
Final Thoughts
The property market is always moving, but the biggest opportunities usually come from understanding the long-term drivers, not chasing short-term headlines.
At Crest Property Investments, we stay focused on what truly matters: supply, demand, population growth, and financial conditions. That’s how we help our clients make informed, confident decisions – whether they’re buying now or planning their next move.
If you’d like to understand how this year’s trends may affect your property goals, we’d be glad to help.
Explore more free tips on our YouTube channel or browse our Market Insights for helpful educational content.
If you’re ready to take the first step, contact us today – we’d love to help you build your property portfolio.
While we have taken care to ensure the information above is accurate at the time of publication, changes in circumstances and legislation may affect the relevance of this article. If you’d like to discuss your situation in more detail, please contact us — we welcome the opportunity to assist you.
January 2026
