Despite mounting policy pressures, real estate seems to remain a safe and attractive investment for Australians.
In the latest episode of the 'Secrets of Top One Hundred Agents' podcast from SPI's sister brand Real Estate Business (REB), Real Estate Institute of NSW CEO, Tim McKibbin, said property remains a stable, long-term investment, despite growing regulatory pressures on investors.
According to McKibbin, Australia’s real estate has a reputation for steady growth and resilience, making it a compelling choice for investors, particularly in comparison to the volatility observed in global share markets.
He described property as a “brick-and-mortar” fallback and a tangible asset that continues to produce confidence in investors during times of geopolitical and economic upheaval.
“Property is a long-term investment, and that’s why people do it,” McKibbin said.
“I think it is one of those things that attracts investment because of the security that comes with it.”
McKibbin said that over the last decade, property values have consistently trended upward, even during challenging periods such as the global financial crisis.
“In every 10 years, property values have gone up,” McKibbin said.
“Sometimes it hasn’t gone up much, sometimes it’s gone up a lot, and I think investors do get a lot of comfort from that.”
As various global markets experience significant instability, McKibbin said it will be interesting to observe whether more capital flows into property, even as a temporary safe-holding option.
While real estate is traditionally a slower-moving, stable asset, he said that current global pressures – including US tariffs and broader economic unease – could still introduce some uncertainty into the market’s future stability.
“We might see money coming into the property market, even if it’s just people parking it there short term, because of uncertainty from what’s happening in America,” he said.
McKibbin said that while properties have been a reliable asset, it remains to be seen whether these global pressures will drive a more significant shift of capital into the Australian real estate market.
Supply pressure, rental growth – a landlord’s market .
Barbara Hutson