Buying Property in the Age of Uncertainty - April 2025

By Rich Harvey, CEO & Founder, propertybuyer.com.au

I’m sure plenty of you watching the nightly news or tuning into online reporting are reeling from recent events. Stories of international conflict, political upheaval, and economic challenges dominate the news space. We barely recover from one yarn about an overseas warzone before another screaming Armageddon in international trade pops up.

It feels like we are in the middle of a maelstrom unlike any in history right now… but that isn’t entirely true. We’ve seen things like this happen in the past.

Moreover, 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.

The moment of madness

I’m not denying the craziness we’re facing in 2025… who could? It’s a concerning picture.

The Australian Financial Review’s 2025 Business Summit illustrates it brilliantly. Titled “Age of Uncertainty” the summit pulled together business and political leaders to discuss a myriad of contemporary concerns. According to the AFR, Australia faces its lowest rate of growth since the early 1990s recession, with living standards having regressed over the past seven quarters. We’re also dealing with trade insecurity delivered by President Trump’s tariff approach to his “America First” manufacturing and investment policy. Of course, almost all economists don’t see the tariffs as a positive for any stakeholder, including the USA, but Australia won’t be immune from the fallout.

Throw in the fact we’re heading toward a federal election where there will likely be a hung parliament too. In that instance, it’ll be difficult for the governing party to take decisive, dramatic action in response to the ever-changing landscape.

History’s lessons

The thing is, we’ve seen times like this before. There’s been incredible upheavals in recent years – from the stagflation of the 1970s to the recession "we had to have" in the 1990s, the 2008 global financial crisis, and the COVID-19 pandemic.

All have had a monumental impact on the prospects of Australians.

For example, stock market reactions to bad news were swift. Look at this chart used in a variety of news stories which shows how the ASX responded to crisis events:

The initial shift is brutal with a long recovery followed. Meanwhile everyday Australians saw their wealth position dramatically eroded within days of the event, if not hours.

Property resilience

While all this may seem dire, there is one space where Aussies turn in troubled times to secure their future.

And that’s real estate.

Even during periods of reform and turbulence, property has maintained its fundamental value proposition. Bricks-and-mortar holds its long-term appreciation for a variety of reasons.

Firstly, it’s a tangible asset that Australians have always held in esteem.

It also delivers shelter – a fundamental need for us humans whose requirement doesn’t diminish in times of strife.

In addition, real estate trading is a slow process that usually encompasses weeks of marketing and negotiation followed by even more weeks of settlement. It’s therefore not price reactive to sudden bad news. Rather, people take time to digest what’s going on and tend to avoid rash decisions when it comes to their housing.

Is now really a good time to buy?

I’m feeling bullish about Australian residential property in the current climate. Not only has history shown that real estate retains its value better than almost any other asset class, but the fundamentals for property now are strong.

Supply is constrained. Elevated construction costs, low developer margins and reasonably high capital city densities are part of this. In our most populous locations, the creation of more housing is slow and difficult.

Meanwhile, demand remains strong. Renters want to transfer to home ownership, and immigration isn’t slowing. This isn’t changing anytime soon.

Also, interest rates remain relatively low in historic terms, and despite overseas political posturing, few believe they will be increased in the near term. In fact, the next cut is on the horizon.

All this points to ongoing demand for property in our country, particularly in key capital city markets.

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.

So, don't wait for all the ducks to line up perfectly – they never do. Instead, take advantage of our team’s expert experience and skills to help you secure a home or investment right now. These turbulent times present a prime opportunity not to be missed, with smart buyers choosing to act rather than wait on the sidelines.

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