Australia’s share market has experienced significant volatility during the pandemic. In March 2020, the ASX 200 dropped sharply, its worst one-day fall in decades, with a 9.7% decline. The market continued to drop, reaching its lowest point on 23 March 2020, representing a total decline of around 30% from its previous peak.
However, from that low point, the market staged an impressive recovery. The ASX 200 surged by 88.2% from trough to peak, reaching its highest-ever level in February 2025. Even with recent market corrections, the ASX 200 remains 71.4% higher than its March 2020 low.
This reflects the long-term growth potential of equity markets, especially for those with a high tolerance for short-term market swings.
Shares also offer liquidity – investors can buy or sell quickly, often at low cost. Dividends provide income, averaging around 3.5% for ASX 200 companies. However, investing in shares can be more susceptible to global economic trends, investor sentiment, and sudden market downturns.
Property Price Growth – A Strong And Steady Climb
While shares have seen dramatic swings, Australian property markets have demonstrated consistent long-term growth. According to the PropTrack Home Price Index, national property prices have risen by 46.7% since March 2020. Some cities have significantly outperformed the national average.
- Adelaide: +81.7%
- Perth: +81.2%
- Brisbane: +80.9%
- Sydney: +38.6%
- Canberra: +35.4%
- Hobart: +37.1%
- Darwin: +30.4%
- Melbourne: +15%
The strength of property markets in cities like Adelaide, Brisbane, and Perth has been driven by affordability, interstate migration, and supply-demand imbalances. Even in cities where growth has been more moderate, property values have trended upwards, reinforcing its stability as an asset class.
Leverage And Its Impact
One key advantage of investing in property is the use of leverage. Most buyers use a mortgage to fund their purchase, which allows them to control a larger asset with a smaller upfront investment.
Let’s say an investor bought a $500,000 property in 2020 with a $100,000 deposit and a $400,000 mortgage. If the property increased in value by 46.7%, it would now be worth $733,500—representing a gain of $233,500. That’s a 233% return on the initial $100,000 investment, excluding costs.
While shares can also be purchased using borrowed funds (through margin loans), this approach is riskier. Margin calls and forced sales during downturns are more common in the share market. In contrast, property investors generally don’t have to sell in a downturn and can hold their asset until conditions improve.
Income, Liquidity, And Tax Considerations
Both asset types – shares and property generate income. Shares pay dividends (currently averaging 3.5% on the ASX 200), while property generates rental income. National gross rental yields currently average around 4.4%, which can help cover loan repayments and holding costs.
Property does come with additional expenses loan interest, council rates, maintenance, insurance, and strata fees if applicable. However, these can often be tax-deductible for investment properties.
One advantage of shares is liquidity. Stocks can be bought and sold instantly, whereas property transactions take time and involve higher costs.
Shares offer ease of access, but less flexibility when it comes to tax treatment. Capital gains tax (CGT) applies to both shares and investment properties, but owner-occupiers are typically exempt from CGT on their main residence. Additionally, negative gearing benefits may apply to property investors.
Investors should also consider how each asset aligns with their retirement planning strategy. Property can serve as a leveraged growth asset within a Self-Managed Super Fund (SMSF), while shares offer greater liquidity and diversification for superannuation portfolios.
Property As A Tangible, Long-Term Asset
While share market returns have outpaced national property growth over the past five years, the reality is more complex. Property’s ability to generate wealth is enhanced by leverage, rental income, and tax advantages.
Unlike shares, property is a tangible asset that provides stability, security, and the potential for capital growth over time. Property also tends to be less volatile in the short term and is not affected by daily market sentiment.
It’s not just about numbers. For many Australians, property is more than just an investment—it’s a home, a foundation for financial security, and a legacy for future generations. It’s an asset you can add value to directly through improvements, and it has long-term appeal in a market with high demand and limited supply.
What Does This Mean For Investors?
Shares and property both have their place in a diversified investment strategy, but property investment in Australia offers unique advantages through leverage, tax benefits, and tangible asset control that shares cannot match.
The decision between property and shares often comes down to your personal circumstances, risk tolerance, and investment timeline. If you’re considering property investment as part of your wealth-building strategy, working with an experienced investment property buyers agent can help you navigate market complexities, identify optimal opportunities, and structure purchases for maximum returns.
Whether you’re looking to buy residential or commercial property, working with a buyers agent who truly understands market dynamics is essential.
At Auswide Buyers Agency, we specialise in helping homebuyers and investors make smarter decisions in today’s property market. As a trusted property investment consultant, we tailor strategies that align with your goals and deliver lasting value.
Ready to explore how property investment could accelerate your wealth building? Contact our expert team to discuss your property investment goals.