Why Investors Should Be Cautious With Post-COVID Housing Price Data
Australia’s property market experienced one of the most extraordinary booms in modern history during and immediately after COVID. Prices surged, borrowing was cheap, construction costs skyrocketed, and demand patterns changed almost overnight.
But here’s the truth:
Those conditions were temporary - and relying on COVID Era price growth to make today’s investment decisions can be dangerous.
At WealthiU, we teach investors to focus on long-term fundamentals, not short-term spikes.
Here’s what you need to know.
Why COVID-Era Price Data Doesn’t Tell the Full Story
1. COVID Pushed Prices Up for Unusual Reasons
— Record low interest rates
— Government stimulus
— Supply shortages
— Construction delays
— FOMO driven buying
These weren’t normal market conditions. Many suburbs saw double-digit growth that was never part of a sustainable trend.
WealthiU helps investors strip out this “COVID inflation” to understand a property’s true long term performance.
2. Construction Costs Exploded & Distorted Property Values
Since 2020, Australian construction costs surged due to:
— Material shortages
— Labour shortages
— Supply chain disruptions
The result?
House prices rose partly because building got more expensive, not because land values genuinely soared. Today, construction costs are stabilising, which means COVID era price jumps aren't a reliable indicator of future growth.
WealthiU shows clients how to distinguish real capital growth from temporary cost-driven price inflation.
3. Borrowing Conditions Are Completely Different Now
During COVID:
— Interest rates dropped to historic lows
— Borrowing power hit record highs
Now:
— Interest rates have climbed
— Borrowing capacity has significantly reduced
— Buyers are more cautious
You simply cannot compare today’s buying power to 2020 - 2022 conditions.
WealthiU helps investors model realistic borrowing scenarios and long-term affordability.
4. Migration and Lifestyle Trends Have Normalised
COVID triggered unusual shifts:
— Huge internal migration to regional areas
— Remote-work-driven demand
— Temporary population dips, then sharp rebounds
These trends boosted prices in places that typically grow slowly.
But post-COVID, the market is rebalancing. WealthiU analyses which areas have true long-term demand drivers - not just pandemic era popularity.
What This Means for Property Investors Today
Don’t assume the COVID boom will repeat
The last five years were not normal. Using them as a benchmark leads to unrealistic expectations and risky decisions.
Focus on fundamentals, not FOMO
Sustainable long-term growth still comes from:
— Strong employment hubs
— Limited supply
— Public infrastructure investment
— Desirable school zones
— High rental demand
These matter far more than COVID-era price charts.
Avoid relying only on online data
COVID distorted every data set - median prices, growth trends, rental yields.
That’s why WealthiU provides on-the-ground insights, suburb targeting, and strategic analysis beyond algorithms.
WealthiU’s Advice
The COVID property boom made prices look better than they really were. At WealthiU, we help clients:
— Separate pandemic anomalies from real trends
— Identify investment-grade suburbs
— Build long-term, resilient portfolios
— Make decisions based on fundamentals—not nostalgia for a once-in-a-lifetime boom
Smart property investing requires clarity, strategy, and expert guidance - not assumptions based on extraordinary years that won’t repeat.