Property market shows resilience amid economic uncertainty

Australian property remains a stable investment option despite the current economic climate, according to property investment experts.

Rich Harvey, CEO and Founder of propertybuyer.com.au, suggests that real estate continues to demonstrate strength during periods of global instability.

“Property is one asset that has consistently delivered stability during troubled times, and there are important fundamentals indicating it’s a prime asset to have on hand during today’s turmoil,” Mr Harvey said.

Australia’s economic landscape has become increasingly uncertain, with the Australian Financial Review’s 2025 Business Summit highlighting concerns about low growth rates.

The summit noted that Australia is experiencing its lowest rate of growth since the early 1990s recession, with living standards reportedly regressing over the past seven quarters.

International trade tensions, including the impact of US tariff policies, are adding to market uncertainty.

Political factors are also contributing to the unpredictable environment, with predictions of a hung parliament in the upcoming federal election potentially limiting decisive governmental action.

Despite these challenges, historical patterns suggest property may remain resilient compared to other investment options.

Previous economic crises, from the stagflation of the 1970s to the COVID-19 pandemic, have demonstrated the stock market’s vulnerability to sudden downturns, while property has generally maintained a more stable trajectory.

Supply constraints in the housing market appear to be supporting property values, with elevated construction costs, low developer margins and high capital city densities limiting new housing stock.

At the same time, demand drivers remain strong, including prospective first home buyers, ongoing immigration, and relatively low interest rates by historical standards.

According to Mr Harvey, these conditions are creating opportunities in key capital city markets despite broader economic concerns.

“While many will be paralysed by headlines and policy inaction, forward-thinking Aussies know that property’s fundamental strength keeps its value not just intact now, but also growing exponentially over the long-term,” Mr Harvey said.

The property market’s relative stability is partly attributed to its nature as a tangible asset and essential need, along with its slower transaction process, which limits reactive pricing during periods of economic volatility.