Is this the beginning of the property supercycle?

After a turbulent few years in the Australian property market, we’re now seeing a consistent pattern emerge—price growth has continued for the second month in a row.

According to Ray White’s Chief Economist, Nerida Conisbee, property prices are on the move again and will continue to increase.

She explains:

"The biggest driver of this price growth continues to be a lack of stock available for sale."

Put simply, more buyers are competing for fewer properties, which is putting upward pressure on prices.

And the data supports this. For the second month running, property prices are rising across the country, with capital cities leading the charge.

In particular:

• Sydney and Melbourne are gaining momentum again, despite affordability challenges.
• Brisbane and Perth continue their strong upward trajectory.
• Regional markets are stabilising after a period of correction.

While some experts expected the downturn to last longer, the reality is that Australia’s housing market has proven incredibly resilient.

Are we entering a property supercycle?

A supercycle in property markets refers to an extended period of sustained price growth, driven by a combination of economic and demographic factors.

While it’s too early to declare that we’re in a full-blown supercycle, several key indicators suggest we’re heading in that direction:

• Stock Shortages – As Conisbee highlighted, there just aren’t enough properties on the market to meet demand. This is a structural issue, not a short-term trend.
• Population Growth – Australia’s post-pandemic migration boom is adding hundreds of thousands of new residents each year, increasing the need for housing.
• Interest Rate Stability – While rates remain higher than a few years ago, we’ve now moved past the cycle of constant rate hikes. A stable rate environment helps improve buyer confidence.
• Rental Crisis – With vacancy rates at record lows and rents skyrocketing, more investors are entering the market, further fuelling demand.
• Construction Bottlenecks – The high cost of building and supply chain delays mean that new housing supply isn’t keeping up with demand.

All of these factors combined create the perfect storm for continued price growth.

What could derail this growth?

While the signs are pointing towards a prolonged growth phase, no market moves in a straight line.

Potential risks include:

• Further interest rate increases – If inflation proves stubborn, the RBA may be forced to hike rates again, which could dampen demand.
• Government intervention – Policies aimed at curbing price growth, such as tax changes for investors, could impact market dynamics.
• Global economic shocks – Events such as a recession in major economies could filter through to Australia and weaken buyer sentiment.

What's ahead?

We’re seeing strong signals that we could be at the beginning of a new property supercycle.

As Ms Conisbee explains:

"The combination of low supply, strong demand, and economic resilience is pushing prices higher, and there’s little relief in sight for buyers hoping for a market correction.

So, if you’ve been sitting on the sidelines waiting for a better time to enter the market, you might want to reconsider your strategy.

While short-term fluctuations are always possible, the broader trend suggests property values are set to keep rising.

• Also read:Australian housing market update [CoreLogic’s video] | March 2025
• Also read:What does a bank valuer look for?
• Also read:The most important piece of property data for the next decade you have NOT considered
• Also read:Brisbane’s property market forecast for 2025
• Also read:Melbourne property market forecast for 2025

Of course, not all markets will perform equally.

That’s why, as I always say, it’s more important than ever to take a strategic approach, focusing on high-growth locations, strong fundamentals, and properties with long-term potential.

A window of opportunity

I see the market moving to the next phase of the property cycle as interest rates continue to fall over this year. 

In general when interest rates decline, the market tends to experience a surge in activity.

More buyers can afford larger loans, and as demand escalates, property prices often soar.’

Buyers who were previously priced out of the market start to re-enter, and those on the sidelines rush to buy before prices climb too high.

This creates a snowball effect that can rapidly drive up property values in growth markets.

However, here's the key takeaway: waiting for rates to drop further might mean missing out.

Remember...there are always markets within markets—while some areas may cool down in the first half of this year, others will still experience growth.

This highlights the importance of looking at data-driven insights and short-term pressure indicators.

I see the current market offering a window of opportunity for property investors with a long-term focus.

As I explained,we have what someone would call a "perfect storm" of factors that will lead to strong property markets over the next couple of years.

So as I said, I see this as a window of opportunity for those who are financially in the position to buy their next home or investment property.

Not that I suggest you try and time the market- this is just too difficult, and in truth, you’ve missed the bottom which occurred two years ago in early-2023.

But if the market hands you an opportunity like this, why not take advantage of it?

Taking advantage of the upturn stage of a property cycle has created significant wealth for investors in the past.

Moving forward, demand is going to continue to outstrip supply for some time to come as we experience strong levels of immigration at a time when we’re just not building anywhere as many properties as we require.

At the same time, the cost of construction of delivering new dwellings will keep increasing not only because of supply chain issues and the lack of sufficient skilled labour but also because builders and developers will only commence new projects if they are financially viable and currently new projects will need to come on line at considerably higher prices than the current market prices.