--- title: "Debunking Property Myths and Expectations: “The Property Market Will Crash”." description: Discover why the Australian property market is unlikely to crash, driven by population growth, economic stability and supply shortages. Learn why waiting could cost you. image: https://blog.norus.com.au/hubfs/instability_in_real_estate_market.jpeg --- [Skip to the main content.](https://blog.norus.com.au/debunking-property-myths-and-expectations-the-property-market-will-crash#main-content) [![Copy of NORUS BRANDING](https://blog.norus.com.au/hs-fs/hubfs/Norus%20Projects/Copy%20of%20NORUS%20BRANDING.png?width=500&height=125&name=Copy%20of%20NORUS%20BRANDING.png "Copy of NORUS BRANDING")](https://www.norus.com.au) [![Copy of NORUS BRANDING (1)](https://blog.norus.com.au/hs-fs/hubfs/Copy%20of%20NORUS%20BRANDING%20(1).png?width=500&height=125&name=Copy%20of%20NORUS%20BRANDING%20(1).png "Copy of NORUS BRANDING (1)")](https://www.norus.com.au) - [Projects](https://www.norus.com.au/sanctuary_sandringham) - [Norus | Beach Point](https://www.norus.com.au/beach_point) - [Norus | Parkview](https://www.norus.com.au/park_view) - [Norus | Riverbend](https://www.norus.com.au/riverbend_ivanhoe) - [Norus | Sanctuary Sandringham](https://www.norus.com.au/sanctuary_sandringham) - [About](https://www.norus.com.au/about) - [Construction Updates](https://www.norus.com.au/construction_progress) - [Completed Projects](https://www.norus.com.au/completed_projects) - [Blog](https://blog.norus.com.au) Toggle Menu Toggle Menu - [Projects *Toggle Menu*](https://www.norus.com.au/sanctuary_sandringham) - [Norus | Beach Point](https://www.norus.com.au/beach_point) - [Norus | Parkview](https://www.norus.com.au/park_view) - [Norus | Riverbend](https://www.norus.com.au/riverbend_ivanhoe) - [Norus | Sanctuary Sandringham](https://www.norus.com.au/sanctuary_sandringham) - [About](https://www.norus.com.au/about) - [Construction Updates](https://www.norus.com.au/construction_progress) - [Completed Projects](https://www.norus.com.au/completed_projects) - [Blog](https://blog.norus.com.au) [*Facebook*](https://www.facebook.com/profile.php?id=61554483013407) [*Instagram*](https://www.instagram.com/norus.projects/) [*LinkedIn*](https://blog.norus.com.au/debunking-property-myths-and-expectations-the-property-market-will-crash#0) [*Twitter*](https://blog.norus.com.au/debunking-property-myths-and-expectations-the-property-market-will-crash#0) [*Youtube*](https://blog.norus.com.au/debunking-property-myths-and-expectations-the-property-market-will-crash#0) [*Medium*](https://blog.norus.com.au/debunking-property-myths-and-expectations-the-property-market-will-crash#0) 3 min read # Debunking Property Myths and Expectations: “The Property Market Will Crash”. [Norus Blog](https://blog.norus.com.au/author/norus-blog) : Published March 14, 2025 Updated September 2, 2026 [News](https://blog.norus.com.au/tag/news) [off-the-plan](https://blog.norus.com.au/tag/off-the-plan) [trends](https://blog.norus.com.au/tag/trends) [housing](https://blog.norus.com.au/tag/housing) [Market commentary](https://blog.norus.com.au/tag/market-commentary) ![Debunking Property Myths and Expectations: “The Property Market Will Crash”.](https://blog.norus.com.au/hs-fs/hubfs/instability_in_real_estate_market.jpeg?width=696&height=400&name=instability_in_real_estate_market.jpeg) The Australian property market is often subject to speculation, with many waiting for a so-called “bubble” to burst. However, historical trends, economic indicators and current data suggest that a significant crash is highly unlikely. While the market may fluctuate, it is underpinned by robust factors such as population growth, economic stabilisation and persistent demand. This think piece explores why buyers waiting on the sidelines might miss out as prices stabilise and gradually increase.   ## **2023: A Year of Stabilisation Amid Rising Interest Rates** Despite significant headwinds, including multiple interest rate hikes by the Reserve Bank of Australia (RBA), the property market in 2023 demonstrated remarkable resilience. Housing prices stabilised during the year, defying the expectations of many. Unit prices saw a **3.6% growth**, while dwelling approvals in Victoria fell by **18.4%**, highlighting the ongoing supply shortage.  CoreLogic data supports this trend, noting that completions of new housing stock have been trending lower throughout 2023. The intersection of stabilising prices and restricted supply signals that a dramatic market decline is not only unlikely but also economically implausible.   ## **Migration Growth and Housing Demand** Australia’s migration numbers are another critical factor driving the property market. In 2023, Australia experienced record migration, with over **500,000 arrivals**, a trend that shows no signs of slowing. This influx adds significant pressure to housing supply, particularly in urban areas like Melbourne and Sydney. Victoria, as a prime destination for many migrants, is feeling the squeeze. Increased demand for housing, coupled with the declining rate of new dwelling approvals, intensifies competition, especially for units and entry-level properties. Migration-driven population growth ensures sustained demand, making a market crash unlikely in the foreseeable future.   ## **Economic Stabilisation Supports Market Growth** Economic conditions are also improving. Inflation is decreasing, interest rates have remained on hold in recent months and employment rates remain consistent. According to the RBA, Australia’s economic growth is expected to strengthen from 2025 onwards. These indicators reflect a stabilising economy, which is critical for property market confidence. When buyers perceive economic stability, demand for property typically increases, particularly for off-the-plan and established housing in high-demand suburbs. This dynamic is evident in areas like **Sandringham**, which saw an extraordinary **59% growth in property prices over the past 12 months** and **Burwood**, where consistent growth was recorded last quarter.   ## **The Supply Shortage: A Key Driver of Price Growth** One of the most significant challenges for the Australian housing market is the ongoing supply shortage. Declining approval rates for new dwellings, coupled with slow construction completions have exacerbated this issue. Victoria, for example, has seen a sharp reduction in approvals, falling by **18.4%** over the past year. The limited availability of housing stock naturally pushes prices higher, particularly for units, which are often viewed as affordable entry points for first-home buyers and investors. Without significant policy changes to address this shortage, the cost of housing is likely to continue rising over the medium to long term.   ## **Suburban Growth: A Testament to Demand** Even as some prospective buyers hold off, many suburbs are experiencing notable growth. Sandringham and Burwood are just two examples of areas seeing strong demand and price appreciation. These trends reflect a broader pattern: as key suburbs attract buyers due to their location, amenities and lifestyle offerings, their property values increase, often outpacing market averages.   ## **Why the Market Won’t Crash** Several interconnected factors make a dramatic crash in the Australian property market highly improbable: 1. **Population Growth:** Sustained migration continues to fuel housing demand. 2. **Economic Indicators:** Stabilising inflation, interest rates and employment helps to build consumer confidence. 3. **Supply Constraints:** Declining approvals and completions ensure that demand outpaces supply. 4. **Regional Resilience:** Suburbs like Sandringham demonstrate that price growth remains strong, even amid broader economic challenges. ## **Waiting Could Cost You** The Australian property market has weathered significant challenges in recent years and emerged stable, with clear signs of growth. Buyers waiting for a crash risk being priced out as population growth, supply shortages and economic stability continue to drive demand.   Rather than waiting for a crash that is unlikely to occur, prospective buyers should focus on understanding market dynamics and exploring opportunities in high-demand areas. Developers like **Norus Projects** offer a range of off-the-plan properties that cater to modern living needs, providing buyers with the chance to secure a home or investment at today’s prices while benefiting from future growth. With conditions favouring long-term stability and gradual appreciation, now is the ideal time to reconsider your property strategy and explore projects designed to meet evolving market demands. ### Register Your Interest In Norus Projects Apartments and Townhouses. Just enter your details below. 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Every effort is made to ensure the information is reliable and up to date.  - [Tweet](https://twitter.com/share) [![Act Fast: Melbourne’s Property Prices Are Set to Rise – Here’s What You Need to Know.](https://blog.norus.com.au/hubfs/shutterstock_1091209523-1024x576.jpg)](https://blog.norus.com.au/act-fast-melbournes-property-prices-are-set-to-rise-heres-what-you-need-to-know) #### [Act Fast: Melbourne’s Property Prices Are Set to Rise – Here’s What You Need to Know.](https://blog.norus.com.au/act-fast-melbournes-property-prices-are-set-to-rise-heres-what-you-need-to-know) [Norus Blog](https://blog.norus.com.au/author/norus-blog) : Feb 7, 2025, 3:19:00 AM Discover why now is the perfect time to invest in Melbourne’s property market, with unit prices set to rise and favourable economic conditions... [News](https://blog.norus.com.au/tag/news) [Investor](https://blog.norus.com.au/tag/investor) [Apartment](https://blog.norus.com.au/tag/apartment) [Market commentary](https://blog.norus.com.au/tag/market-commentary) [Find Out More Details](https://blog.norus.com.au/act-fast-melbournes-property-prices-are-set-to-rise-heres-what-you-need-to-know) [![Australia’s Interest Rate Drop: Implications for Off-the-Plan and Property Buyers in Melbourne](https://blog.norus.com.au/hubfs/Untitled%20design.png)](https://blog.norus.com.au/australias-interest-rate-drop) #### [Australia’s Interest Rate Drop: Implications for Off-the-Plan and Property Buyers in Melbourne](https://blog.norus.com.au/australias-interest-rate-drop) [Norus Blog](https://blog.norus.com.au/author/norus-blog) : Aug 19, 2025, 12:15:00 PM The RBA cuts the cash rate to 3.60%, the lowest in two years. Discover what this means for homebuyers and off-the-plan opportunities in Melbourne. [First Home Buyer](https://blog.norus.com.au/tag/first-home-buyer) [Upsizer](https://blog.norus.com.au/tag/upsizer) [Downsizer](https://blog.norus.com.au/tag/downsizer) [off-the-plan](https://blog.norus.com.au/tag/off-the-plan) [Market commentary](https://blog.norus.com.au/tag/market-commentary) [Find Out More Details](https://blog.norus.com.au/australias-interest-rate-drop) [![Property Equity, Incentives and Cross Securitisation: A Guide for Property Investors](https://blog.norus.com.au/hubfs/Cross-securitisation.jpg)](https://blog.norus.com.au/property-equity-incentives-and-cross-securitisation-a-guide-for-property-investors) #### [Property Equity, Incentives and Cross Securitisation: A Guide for Property Investors](https://blog.norus.com.au/property-equity-incentives-and-cross-securitisation-a-guide-for-property-investors) [Norus Blog](https://blog.norus.com.au/author/norus-blog) : Feb 28, 2025, 2:17:00 PM Learn how to leverage property equity, government incentives and cross-securitisation to maximise your property investments and build long-term... 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