No matter who leads the country, property continues to outperform. Here's why investors should feel confident in the long-term strength of the Australian market.
When Australians headed to the polls in early May 2025, property investors held their breath—not in fear, but in anticipation. With Labor securing a decisive re-election, continuity was assured. And for the 2.3 million Australians who own investment properties, that’s not bad news.
History has shown us one thing clearly: no matter which party holds power in Canberra, Australian real estate continues to prove itself as a resilient, long-term wealth generator.
The Albanese government has not proposed any changes to key legislation affecting property investors, outside of some restrictions to foreign investors. Critically, Labor has not slated any changes to negative gearing or capital gains tax concessions.
A move against these tax breaks would be largely unpopular and could prompt mass sell-offs, disrupting already tight rental supply and shaking confidence in the property market. The current government’s hands-off approach avoids disruption and allows investors to plan with greater confidence.
As detailed in Meridian Australia’s recent analysis, Australia is facing an unrelenting supply shortage. Construction bottlenecks, labour shortfalls, and planning delays have constrained new housing stock.
Meanwhile, population growth and immigration continue to fuel demand. Add government incentives for first-home buyers—such as the First Home Buyer Guarantee—and you have a surge of new demand entering an already constrained market.
For those already invested, this imbalance is a tailwind. For those looking to enter the market, it raises the urgency.
Australian property values have steadily climbed across both Labor and Liberal governments over the last 40+ years. Whether during the reform-focused Hawke-Keating era, the Howard boom, or post-GFC recovery, property has remained a reliable vehicle for wealth accumulation.
Even during the 2008 Global Financial Crisis, Australia’s real estate market performed relatively well. Prices dipped briefly, then rebounded—and kept climbing.
The takeaway? Property doesn’t vote—it performs.
Beyond its position on negative gearing and CGT, Labor is rolling out a broader housing reform package that may shape the market in years to come:
While these policies may shift demand dynamics in certain sub-markets, they are unlikely to negatively impact long-term investor prospects.
Property values have steadily climbed across both Labor and Liberal governments over the last 40+ years.
For younger Australians, entering the property market can feel increasingly out of reach. Prices are rising and rental options are shrinking. But support exists.
Parents can assist as guarantors or co-investors, and schemes like the First Home Buyer Guarantee or Help to Buy can help bridge the deposit gap. Getting into the market—even modestly—can be a game-changer.
With no legislative changes on the horizon for investment properties, record-low rental supply, and ongoing population growth, the fundamentals of property investment remain as strong as ever. Political leadership may change, but bricks and mortar continue to deliver.
Whether you're expanding your portfolio or helping the next generation get on the ladder, one fact remains: property in Australia is a long-term win—no matter who’s in power.
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