The Headline Market and the Local Market Are Not Always the Same Thing
There has been plenty of discussion about the Australian property market in recent months.
From the Federal Budget to housing affordability, borrowing capacity, first home buyers, investors and negative gearing, it’s easy to feel uncertain about the best time to buy or sell.
However, national headlines don’t always reflect what’s happening in your local area.
The Raymond Terrace property market is a great example. The local market tells a different story.
It’s not simply a case of investors pushing out first home buyers or buyers waiting for prices to fall.
Instead, the data shows a more balanced picture.
Rental demand is still extremely strong
Rental demand across Raymond Terrace and surrounding suburbs continues to be very strong.
Right now, only around 1% of our rental portfolio is advertised for lease. And of that 1%, the majority of those homes are not actually vacant yet.
That means we are still seeing very strong rental demand across the area. This is important because rental demand is one of the key factors investors look at when deciding where to buy.
If a property is affordable, has strong tenant demand, provides a reasonable return and has long-term growth potential, it may still be an attractive investment, even without relying heavily on tax benefits such as negative gearing.
Negative gearing can reduce taxable income, but it only applies when an investment property operates at a loss.
Experienced investors rarely buy property for tax benefits alone. Instead, they assess rental income, yield, holding costs, borrowing capacity and future growth before making a decision.
When those fundamentals are strong, an investment can still make sense.
The market pace has changed
From November 2025 through to the Budget release, we were seeing homes in Raymond Terrace not even make it past the first open home before being under offer.
That level of urgency has now shifted.
Buyer enquiry has slowed. Borrowing capacity has reduced. Confidence has softened.
For some buyers, that has created hesitation. They are waiting to see what happens next.
But the question is: what are they waiting for?
If the market pauses and prices soften, that may create opportunity for first home buyers and owner occupiers who previously felt priced out or rushed. However, if prices soften too much, that opportunity may also appeal to smart investors.
Investors have not been dominating our local market
One common misconception is that investors are driving up prices across every market.
That hasn’t been our experience.
One common misconception is that investors are driving up prices across every market.
That hasn’t been our experience.
From January until the Budget announcement, only 31% of our settlements were investor purchases. Most buyers were everyday Australians making careful financial decisions rather than large investment groups.
Importantly, 66% of those investor purchases were existing rental properties that remained under our management. Those homes stayed in the local rental market.
Our experience shows that investors are generally disciplined. They buy when the numbers work. If rental yield, expenses and long-term returns don’t stack up, they simply move on.
First home buyers and owner occupiers, on the other hand, have heavily driven our market over recent months.
Many acted with urgency. Some offered quickly. Some offered above asking price to secure a home and get into the market.
In some cases, we were seeing buyers move quickly around the $800,000 mark because that price point had become such an important threshold.
Why recent first home buyers may feel the pressure
When a market is moving quickly, buyers often feel they need to act fast.
For some recent first home buyers, that meant purchasing with high loan-to-value ratios, sometimes borrowing up to 95% of the property value.
When values are rising, that can feel manageable. But when the market pauses, even a small shift in value can feel significant for buyers who entered with very little equity.
The longer a market sits still, the more pressure there can be on prices.
That does not automatically mean a major correction, but it does mean buyers and sellers need to be realistic about where the market is today, not where it was several months ago.
Affordability may bring more buyers into Raymond Terrace
Raymond Terrace and surrounding suburbs still offer a good selection of homes priced below $800,000.
That level of affordability is becoming harder to find across many neighbouring suburbs.
As borrowing capacity becomes more restricted, buyers may increasingly look toward areas that offer better value while still providing lifestyle benefits, transport access and future growth potential.
For many buyers, Raymond Terrace continues to meet those criteria.
Do not make decisions based only on the media
The biggest takeaway is this: do not make a property decision based only on what you are seeing in the media.
The headline market and the local market are not always the same thing.
National discussions about affordability, tax policy and borrowing capacity influence confidence. They don’t always reflect what’s happening in individual suburbs.
Every property decision should consider your financial position, long-term goals and the conditions in your local market.
For buyers, today’s slower market may provide more time to make informed decisions.
For investors, the focus should remain on rental demand, affordability and long-term returns.
Sellers should also recognise that while buyer urgency has eased, the key fundamentals of the Raymond Terrace property market remain strong.
And for anyone looking at Raymond Terrace and surrounding suburbs, affordability, rental demand and long-term growth potential are still very much part of the conversation. The market may have slowed, but that does not mean the opportunity has disappeared.
It may simply mean buyers now have the chance to make a more practical decision.