Rising global uncertainty prompts investors to shift from shares to bricks and mortar
As global share markets react to rising geopolitical uncertainty and trade tensions — including new US tariffs, property is emerging as a preferred investment option for investors seeking more predictable outcomes.
Real estate group Raine & Horne has reported a notable uptick in investor activity across regional centres such as Toowoomba, as well as in smaller capitals like Hobart and Darwin, and outer metropolitan areas in cities like Melbourne.
“Regardless of global events, one thing is clear – share market volatility has become the new normal,” said Maria Milillo (pictured above), head of property management at Raine & Horne. “For investors who value peace of mind, markets such as emerging regional hubs such as Toowoomba and the smaller capital cities such as Hobart and Darwin offer growth prospects, solid returns, and excellent affordability.”
Cushman & Wakefield chief economist Kevin Thorpe has earlier noted that international investors increasingly view Australia’s real estate market as a comparatively safe environment in light of global political uncertainty.
“I have to say, from a real estate perspective, when I look at Australia, I see a market that is a safer bet, with upside,” he said.
In Queensland, Raine & Horne said Toowoomba is seeing renewed attention from investors in Brisbane and Sydney, particularly in the $500,000 to $750,000 price bracket. According to Raine & Horne Toowoomba principal Chris Shine, the city’s consistent performance and growing appeal are attracting buyers who want to enter the market ahead of any future rate cuts.
“The market is starting to pick up, with savvy investors looking to get in early before any interest rate cuts send values north,” Shine said. “The sweet spot for investors is between $500,000 and $750,000, where you can find the best apartments and affordable three-bedroom homes offering gross rental yields of around 5% — which is very competitive compared to returns in Sydney and Brisbane.”
Toowoomba’s rental market is supported by a well-diversified economy. The region’s estimated gross product of $14.76 billion accounts for over 3% of Queensland’s economic output. The local economy is no longer reliant solely on agriculture, with sectors such as healthcare, education, manufacturing, and defence playing key roles in employment and growth.
Health care and social assistance is now the city’s largest employer, providing more than 17,500 jobs. Shine also noted the retail sector remains a strong employer, accounting for close to 10% of local jobs.
“Investors are recognising Toowoomba’s transformation into a region with real economic depth and employment opportunities for tenants, which is translating into consistent rental demand and long-term property growth,” he said.
Recent sales reflect this trend. A two-bedroom villa in Newtown was recently sold for $485,000, attracting offers from both local and interstate buyers. The property is expected to yield $460 per week in rent.
In Victoria, similar dynamics are playing out in outer-ring suburbs of Melbourne. With equity markets under pressure, property is regaining favour among investors.
“Land tax remains a consideration for some, but history shows that when the equity markets take a hit, investors often shift their focus to real estate,” said Randolph Clements, managing director of Raine & Horne Victoria.
Clements said areas like Cranbourne, Clyde, Narre Warren, Berwick, Pakenham, and Sunbury are performing well. Sunbury, in particular, offers strong value with proximity to both the CBD and Melbourne Airport. Caroline Springs, Williams Landing, and Tarneit are also continuing to attract investors looking for affordable properties under $1 million.
In Tasmania, Hobart recorded a 0.9% rise in property values during April, according to Cotality data — second only to Darwin at 1.1%. While the market has experienced ups and downs, affordability and strong yields continue to support investor confidence. Hobart’s median home value now stands at $664,462, ahead of only Darwin among the capitals.
“Hobart’s real estate market has traditionally been a safe bet, delivering steady long-term gains including gross yields 4.4% that is only bettered by those in Darwin among the capital cities,” said Matt Carne, principal of Raine & Horne Eastern Shore. “There’s a fair bit of stock available at the moment, but we’re now seeing stronger sales volumes and stabilising prices across the market.”
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