This month on Market Watch Debra Beck-Mewing and Scott Hochgesang reviewed property market performance across Australia to 31 July 2025, comparing data from three leading sources – CoreLogic (formerly Cotality), PropTrack, and SQM Research – and took a closer look at one of their favourite topics: property myths and big, big lies.
The Market at a Glance
The August 2025 review revealed some sharp differences between data sources — a reminder that methodology matters. CoreLogic and PropTrack base their results on settled sales, while SQM tracks asking prices, which can tell a slightly different story as this is a more forward looking metric.
- Sydney: CoreLogic showed 0.8% growth, but both PropTrack and SQM had just 0.1%.
- Melbourne: Growth was moderate — 0.4% (CoreLogic), 0.2% (PropTrack), while SQM recorded a slight dip in asking prices.
- Brisbane & Adelaide: Both cities posted healthy gains, with Adelaide up as much as 1% in PropTrack’s measure.
- Perth: Continued strength at 0.9% (CoreLogic).
- Darwin: A statistical outlier — CoreLogic recorded +2.9%, SQM +2.6%, while PropTrack saw no change. Darwin’s small size means even a handful of strong sales can skew the data.
- Canberra & Hobart: Both were mostly steady with minor fluctuations.
The trend lines show most capital cities moving in similar directions month-to-month – except Darwin, which continues to spike.
On the Ground – Stock, Sentiment, and Surprises
From the frontline:
- Darwin is running hot, with some properties selling after a single open. But the fundamentals don’t suggest long-term growth – this feels more like a Hobart-style burst than a sustainable climb.
- Brisbane is seeing fierce competition for land, with developers pushing prices higher and wait times stretching to 9–12 months for titled lots.
- Melbourne land sales are a different story, with developers offering rebates of $20,000–$40,000 in special sales events.
The Rental Market – Signs of Moderation
Rental growth is easing in most capitals:
- Houses: Darwin led annual growth at just over 6%, while Melbourne recorded the smallest increase at 0.7%.
- Units: Darwin again topped the list with 9% annual growth, driven by tenants seeking more affordable options after house rents climbed.
Low vacancy rates persist, but the pace of rental increases is slowing which is a trend that could continue into summer.
News Shaping the Market
Several developments over the past month are influencing buyer and seller sentiment:
- RBA Cash Rate Cut: Down 0.25% to 3.6%, with banks moving quickly to pass on the change.
- Federal Economic Round Table: With the Economic think tank session scheduled for 19 to 21 August, lobby groups have been prepping their arguments and starting their influence campaigns. Speculation on changes to negative gearing and capital gains tax was quashed by the Prime Minister, with any proposals deferred until after the next election.
- Government Dependency: In another piece of research prepared for the Round Table, the AFR published a story outlining that 50% of voters receive their main income from government sources, largely due to pensions, NDIS, and public sector employment. This sent a stream of concern through the markets, until people realised the blow out was mainly due to overruns on the NDIS – not that we were heading into a dreadlock economy.
- New Zealand Lessons: Past removal of negative gearing and planning changes led to price falls and rental vacancy rates to plunge along with rental spikes. The recent reintroduction has contributed to a rebound – an interesting comparison and lesson for Australia.
- Queensland Contract Changes: As of 1 August, sellers must provide detailed disclosure statements before contracts are signed – a positive for buyers, but causing delays due to council and solicitor backlogs.
- US Market Sentiment: Despite recession fears earlier in the year, US markets are buoyant, aided by tech investment and potential Federal Reserve rate cuts.
In Focus – Property Myths and Big Lies
This month, we tackled eight persistent myths that can derail buyers – and explained the truth behind each one.
Myth and Big Lie #1 – You Need 100+ Properties for Financial Freedom
Some so-called ‘advisors’ promote the idea that the only path to financial independence is owning 100 or more properties. The truth is this model often benefits the advisors far more than the investors. Every property purchase comes with acquisition costs – stamp duty, legal fees, inspections plus buyers agent fees (including the ‘advisors’ fee!) – and multiplying those costs over dozens of purchases drains capital that could have been used more efficiently.
The smarter measure of success isn’t the number of properties you own, but the income they generate. Many investors achieve genuine financial freedom with fewer than 10 properties – sometimes even fewer than five – by targeting higher-yielding assets like dual-income properties, rezoned ‘agile’ blocks, or multi-tenancy dwellings. Quality, not quantity, builds wealth faster and with far less stress.
Myth and Big Lie #2 – Negative Gearing is Bad for First-Home Buyers
Negative gearing is often painted as a villain in the housing affordability debate, but the reality is more complex. By making property investment more attractive, it helps maintain rental supply which keeps rents lower. That’s particularly important for first-home buyers who are still renting while saving their deposit. It also supports ‘rentvesting’ strategies, where a buyer invests in a property first, then uses the growth and income to purchase their own home later.
Far from being a loophole, negative gearing has been part of Australia’s tax system since 1936 and applies to all investments, not just property. Remove it from real estate and many investors would simply shift into shares or other asset classes, leaving a gap in the housing supply. History has shown the risks – when Paul Keating removed negative gearing in 1985, rental affordability worsened, and it was reinstated just two years later. Today, property investors inject over $45 billion into the tax base annually, supporting one of the country’s largest and most diverse employment sectors, which employs around 2 million Australians.
Myth and Big Lie #3 – Hotspot Lists are a Good Guide for Where to Buy
Hotspot lists may sound enticing – who doesn’t want the inside scoop on the ‘next big thing’? The problem is these lists are almost always too generic to match an individual buyer’s goals, and the data they’re based on is out of date. By the time a suburb makes it onto a publicised hotspot list, the early gains have usually been made, and latecomers risk paying too much and buying at the peak.
Following hotspot lists also encourages chasing short-term spikes in markets with poor long-term growth prospects, such as areas tied to single industries like mining. In some cases, the lists themselves are biased, especially when they’re sold as a product or linked to stock that a company is trying to offload. Past sales trends alone are not a reliable predictor of future growth – it’s the leading indicators, such as infrastructure investment and population shifts, that matter most.
Myth and Big Lie #4 – Always Buy in the Cheapest Suburb You Can Find
The advice to ‘get your foot in the door” by buying in the cheapest suburb can trap buyers in areas with little long-term growth. Low prices often come with low demand, fewer amenities, and limited employment opportunities – all factors that suppress capital growth over time.
A better approach is to focus on value, growth potential, and the fundamentals of the property and location. This often means buying the most affordable property in a good suburb, rather than the cheapest home in a low-performing area. The difference in growth over a 5 to 10-year period can be substantial, making patience and strategy far more rewarding than chasing the lowest possible entry point.
Myth and Big Lie #5 – Renovating Always Adds Value
Renovating can transform a property – but not every renovation pays for itself. Overcapitalising or making improvements without understanding what the local market values can actually shrink your buyer pool. A sleek high-end kitchen might impress you, but if buyers in that area prioritise yard space or an extra bedroom, the upgrade may not translate into higher offers.
Some popular renovation strategies, like adding a granny flat, also require careful financial analysis. With build costs now around $150,000, it can take years before rental income covers the outlay. Flipping properties carries similar risks once you factor in purchase costs, stamp duty, renovation expenses, selling costs, and capital gains tax. The best results come from targeted, market-specific improvements that match buyer demand and in the current market the biggest payoffs are suburbs with an entry point of the $2,000,000 mark.
Myth and Big Lie #6 – You Should Never Sell Property – Ever
While holding quality property long-term can be a great strategy, clinging to underperforming assets can stall your portfolio’s growth. Some investors hold onto properties out of habit, fear, or loyalty, even when the numbers show they’d be better off reallocating capital elsewhere. Strategic selling can unlock funds for higher-performing opportunities, often accelerating progress toward financial goals.
An annual portfolio review – looking at both the property and the market it’s in – helps identify when it’s time to make a move. For example, selling a stagnant unit in a capital city could free up enough equity to purchase a growth-ready house in a stronger market. The goal isn’t to trade constantly, but to stay responsive to changing conditions and opportunities.
Myth and Big Lie #7 – An All-in-One Service Provider is the Safest Option
It’s tempting to think one provider who can handle finance, conveyancing, and property selection will make the buying process easier. In reality, it’s a dangerous lack of checks and balances. When everyone in the process is tied to the same business interests, there’s little incentive to question the quality of the deal – and every incentive to push it through quickly, often at your expense.
A safer approach is to engage at least one – ideally three – independent specialists: a mortgage broker, a solicitor or conveyancer, and a buyer’s agent. This team structure provides independent advice at every stage, helping you avoid overpaying, spotting potential issues, and steering clear of unsuitable properties.
Myth and Big Lie #8 – A 100-Point Research Checklist Guarantees a Good Buy
Some providers promote elaborate “100-point” research checklists as proof of thorough due diligence. But in many cases, the criteria are skewed to favour properties that deliver the highest commissions to the provider. The property range considered may be limited, the comparisons heavily filtered, and the ‘scores’ designed to justify selling a specific property.
A checklist is only as good as the data and the breadth of properties it covers. If the selection process excludes better options simply because they don’t fit the provider’s sales model, the end result is misleading. True due diligence requires an unbiased search and an honest comparison across all viable properties in a target market.
Protecting Yourself as a Buyer (or Seller)
- Use trusted data sources (CoreLogic, PropTrack, SQM, Domain, REA).
- Run financial pros and cons for each property.
- Focus on what suits your strategy, not generic rules or glossy reports.
Engage independent professionals – from buyer’s agents to solicitors – for unbiased advice.
Next month in Market Watch, we’ll compare regional and capital city performance – a debate that’s heating up as buyers search for value.
If you’d like expert guidance, you can reach Scott via his Facebook page (Scott Property Coach) or find details in the podcast description. You can also explore our Property Smart Track — designed to help you search smarter, avoid costly mistakes, and buy with confidence.
Author: Debra Beck-Mewing
Debra Beck-Mewing is the Editor of Property Portfolio Magazine and CEO of The Property Frontline. With over 20 years of experience buying property across Australia, Debra is a skilled property strategist and buyers agent known for uncovering tailored opportunities — from family homes to multi-use investments.
She has deep expertise in advanced strategies including renovations, granny flats, sub-division, and development. A Qualified Property Investment Advisor (QPIA®), licensed real estate agent, and holder of a Bachelor of Commerce and Master of Business, Debra combines strategic insight with hands-on experience.
Debra is the creator of the Property Smart Track System™ – a professional property buying system that enables buyers to select, assess and buy property independently in today’s market. She also leads Buy Like A Genius™, a premium end-to-end buyers’ agency service for busy professionals seeking expert property acquisition without the stress.
As a passionate advocate for greater transparency in the property and wealth industries, Debra is a sought-after speaker, author, podcast host, and participates on numerous committees including the Property Owners’ Association.
