Property investing is changing – and I think affordable property will outperform expensive “blue-chip” markets over the next 5-10 years.
A Housing Shortage Meets an Affordability Ceiling
Australia has a chronic housing shortage, but affordability is becoming a major constraint.
That creates a very different market.
What the 1970s and 1980s Tell Us
➡️ In the 1970s and 1980s, Australia experienced inflation of around 7–10% and interest rates eventually approached 20%. Yet property prices still rose strongly.
➡️ During the major 1970s oil shocks, Australian house prices still increased significantly — including roughly 2.5x across the broader 1970s period discussed.
But today’s starting point is different.
Sydney’s median is around $1.1 million, compared with roughly $16,000 decades ago. So I don’t expect expensive markets to simply repeat those historical growth rates.
Demand Is Moving Down the Price Ladder
Instead, I think demand continues shifting DOWN the price ladder.
We’re already seeing it.
Sydney is losing younger people, particularly those under 35, to more affordable regional markets.
An investor looking at a $1.5m property yielding 2.5% might need to contribute $50k–$60k every year just to hold it.
Why do that when they could potentially buy for $500k–$700k, achieve around double the yield and put far less pressure on borrowing capacity?
Affordable Markets With Room to Grow
That’s why I’m still bullish on selected affordable markets.
Places like regional NSW, regional Victoria, regional Queensland, Hobart, Launceston, Geelong, Newcastle and Perth can still have opportunities where local supply and demand fundamentals stack up.
Some regional markets such as Mackay, Gladstone, Townsville and Toowoomba have already experienced enormous growth — and I believe selected locations still have runway.
Even Adelaide surprised me.
Some affordable areas have exploded. Elizabeth has roughly tripled in only 3–4 years.
Government incentives, interstate migration and international migration are pushing some markets beyond their old affordability ceilings.
Investors Can Now Move Markets
There’s another major change happening too: investors themselves can now move markets.
One northern Adelaide example discussed was Angle Vale, where agents reportedly said around 9 out of 10 buyers were interstate investors from Sydney.
The suburb subsequently roughly tripled in around 3–3.5 years.
That’s why blindly following a hotspot list or a buyers agent can be dangerous.
Why Interpreting Data Is the Real Advantage
Data is now available to almost everyone.
Days on market. Inventory. Stock levels. Building approvals. Affordability. Rental demand. Supply.
The advantage isn’t ACCESS to data anymore.
The advantage is knowing how to interpret it.
And whether you use a buyers agent (you don’t need to!) or invest yourself, don’t sacrifice long-term fundamentals chasing short-term growth.
Land appreciates. Buildings depreciate.
Buy where supply and demand, affordability, yield and long-term owner-occupier appeal all stack up.
Will Affordable Property Outperform Blue-Chip?
I think the next 5–10 years could increasingly belong to the affordable end of Australia’s property market.
Do you agree? Or do you think expensive blue-chip property will outperform?
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Co-Founder | The Educator & Mentor
I’m also a property investor with a $27m+ debt-free portfolio of residential & commercial property, generating over $300k+ net annual passive income.
I help people from all over Australia, by accessing a unique strategy that combines high growth high cashflow residential property, alongside highly profitable property development projects to help accelerate their passive income. I typically work with families, young over-achievers, and new Buyers Agents who want a predictable, DATA-led system to grow wealth and Passive Income.