The Economic Signal Most Property Investors Are Completely Overlooking | Dr. Andrew Wilson

Why It Matters

A strong labour market and soaring land costs together sustain existing property values, reshaping investment strategies toward established assets and away from costly new builds.

Key Takeaways

• Australia's labor market remains resilient, supporting housing demand.
• Unemployment steady at 4.3%; participation rate still high.
• Land prices surge, creating a floor under existing property values.
• Perth land prices jumped 52% year‑over‑year, outpacing others.
• Rising construction costs make new homes less competitive than established ones.

Summary

The video spotlights an often‑ignored driver of Australia’s property cycle – the strength of the labour market – alongside soaring land costs and shifting auction sentiment. Dr. Andrew Wilson and host Michael argue that job security, not just interest rates, underpins buyer confidence, noting unemployment held at 4.3% in March with a participation rate near 67%, levels comparable to pre‑COVID booms. Key data points reinforce this view: employment growth of 17,900 jobs, a modest dip in the unemployed, and state‑by‑state unemployment remaining in the low‑fourths. Simultaneously, the cost of house‑building blocks has accelerated, with Sydney’s median block at $740,000 (up 7.2% YoY) and Perth’s block price soaring 52.4% – the sharpest rise among capital cities. Average block sizes vary, but the price per square metre is climbing across the board, pushing total new‑home delivery costs toward $1 million. Wilson emphasizes that “the strongest impact on affordability is whether you have a job,” while the land‑price surge creates a “meaningful floor” for existing properties, making them relatively cheaper than new builds. He cites the limited supply of fringe building blocks and rising construction inputs, from materials to fuel, as further pressure on new‑home viability. For investors, the resilient labour market signals continued demand, while inflated land and building costs protect the value of established assets but challenge new‑development profitability. Monitoring employment trends and land‑price dynamics will be crucial for strategic positioning in Australia’s housing market.

Original Description

There's something many property investors completely overlook when trying to figure out where the market is heading.

It's not interest rates. It's not auction clearance rates.

It's jobs - and right now, the Australian employment market is sending a very clear signal that the property market has more underlying support than most people realise.

So in today’s Property Insiders chat Dr Andrew Wilson and I unpack three key themes that are quietly shaping the direction of our housing markets.

We’ll start by looking at Australia’s labour market, which remains more resilient than many expected, and why that matters for property.

Then we’ll turn to a factor that doesn’t get enough attention but is having a profound impact on housing affordability and supply - the cost of land which has surged and creates a meaningful floor under the value of established properties.

And finally, we’ll briefly touch on what’s happening at auctions around the country and what that’s telling us about buyer sentiment as listings rise.

--

You can also read the full article on Property Update: https://propertyupdate.com.au/property-news-headlines-forecasts

If you're looking for Direction, Certainty, and Wealth Producing Results in property and wealth creation why not get my team at Metropole to discuss your options: https://metropole.com.au/enquiry/

#PropertyInsiders #MichaelYardney #DrAndrewWilson #AustralianPropertyMarket #PropertyInvestment #RealEstateInsights #MarketUpdates #propertytrends

--

About Property Insiders

Hosted by Michael Yardney and respected property economist Dr Andrew Wilson, Property Insiders delivers research-based analysis of Australia’s housing markets.

We unpack:

• National and capital city property price data

• Weekly auction results

• Housing supply and demand metrics

• Population growth impacts on property

• Market momentum indicators

• Regional vs capital city performance

• Property market turning points

• Short-term trends vs long-term fundamentals

If you want reliable Australian property market analysis grounded in data rather than speculation, Property Insiders delivers informed commentary to help investors stay ahead of the cycle.

Explore more property research at:

https://propertyupdate.com.au