Australia’s property market is at a critical turning point. As interest rates begin to ease after years of increases, the country’s leading property figures are moving quickly to redirect capital flows and restart stalled developments. Some developers are forecasting earnings growth above 9%, though a persistent housing shortage and high building costs continue to limit supply.
The industry has faced significant challenges. Over the past few years, both commercial and residential sectors have experienced major asset write-downs and project delays due to surging interest rates and inflation. A shift is now taking place. Australia’s most influential property leaders are raising billions in institutional funding and positioning themselves to drive the recovery. At the same time, house prices are rising again even as construction remains behind population growth.
Goodman Group stands out as Australia’s largest listed property firm and earns around 70% of its income from global operations. The group is capitalising on rising demand for AI-ready data centres. Backed by strong cash reserves and low debt, it is in a strong position to pursue high-cost investments that competitors may be unable to fund.
In residential property, Scape has undergone a major transformation and now operates under the name “The Living Company”. It works across student housing, rental apartments, retirement villages and affordable accommodation. After acquiring $3.85 billion in assets, the group has increased its portfolio to more than 30,000 units. Much of its capital comes from foreign sources, making it a vital force in easing rental pressures in Australia’s largest cities.
Charter Hall’s long-serving executive has quietly secured billions in new funding as falling interest rates signal renewed investment opportunities. Supported by a web of global investors and over 20 years of experience, the company is moving early on the next phase of market growth. It maintains a strong focus on commercial properties, now under improved conditions and better returns compared to the high-rate environment of recent years.
On the policy front, the federal government has made a pledge to deliver 1.2 million new homes by mid-2029. While progress has been slow, recent steps such as easing building code rules and fast-tracking approvals for thousands of housing developments suggest a more proactive approach to scaling up supply. The main hurdle now is delivering major projects amid soaring land prices and slow construction activity.
Among policy thinkers, supply-side advocates are gaining ground. One prominent planner known for pressing for zoning reform has shaped much of the current policy debate. His position is clear - solving the housing shortage requires governments to relax planning rules and cut bureaucratic delays. Local councils have resisted moves to raise density, but state and federal governments are increasingly pushing harder to add homes to the market.
All signs show capital is flowing again and leading figures are moving to take advantage of the recovery. Yet, with material costs remaining high and regulatory uncertainty in play, the route forward remains challenging.
