The Australian Property Institute (API), the professional body for independent property experts in Australia has conducted first-of-its-kind research in seeking the views of expert property valuers on the outlook for all types of property prices in Australia and, most importantly, what the recent and coming actual drivers of those prices are.

Read the full Australian Property Market Outlook 

“The key finding of our research is that Western Australia clearly leads the pack in the API Property Market Outlook Index with a rating of 8.7, far outstripping states like NSW (6.5) and Victoria (5.8)”, said the author of the report Dr Sherman Chan (Chief Economist at the API) 

“In terms of property types, Residential continues to dominate with a rating of 7.3 compared to categories like Retail (5.4) and Office (5.0),” according to Dr Chan 

“The ground-breaking aspect of the report uncovers that what is really driving residential property prices are 5 clear factors: construction costs (identified by 66.3% of residential valuers surveyed), interest rates (62.8%), population growth (60.5%), lack of existing housing supply (59.9%) and lack of new housing supply (58.7%)” 

“In short, it tells us categorically that population growth isn’t being matched by our housing stock and pipeline and that meeting that demand is costing too much. It’s the perfect storm,” said Dr Chan. 

“Nationally, the API Property Market Outlook Index is 7.1 out of 10, showing solid momentum overall. Though the market is anything but uniform – with industrial property upbeat (7.1) and agriculture holding in positive territory (5.9), while retail (5.4) and office (5.0) are more cautious,” said Dr Chan. 

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We encourage readers and industry stakeholders to explore the report and share its findings within their networks. By amplifying these expert perspectives, you help ensure informed, balanced views of Australia’s property markets reach a wider audience.