The current market cycle across Western Australia (WA), Queensland (QLD), and New South Wales (NSW) is being driven by a clear mandate: long-term wealth is built on land, the non-replicable asset. This week, we dive into the data and strategic methods required to secure land-rich assets in these three top-performing states.
The national data confirms the aggressive return of the disciplined investor. The value of new investor loan commitments surged by nearly 17.6% annually as of the September Quarter 2025, reaching roughly 40% of all new loans. This investor momentum shows that securing the right asset—one with a strong land component—is the primary focus, not competing on price with first home buyers (FHBs).
Strategic Market Focus: Securing Land Content
The long-term wealth equation is simple: land appreciates, buildings depreciate. Here’s an official ABS link which would give you a perspective of how land values have increased over the last decade in Australia by state. Your strategy must be targeted at maximizing the land component of your purchase. The City/Town and Suburb factors —which contribute to an enormous 70–80% of a property’s future capital growth—are fundamentally about land scarcity and desirability.
🗺️ Western Australia (WA): Securing Scarcity in the Middle Ring
Perth remains one of Australia’s strongest markets, with forecasts predicting another 5% to 10% growth in 2025. While the high yield of units is often promoted, the long-term wealth generator is securing land-rich assets, such as houses or townhouses, in desirable, middle-ring suburbs where physical supply is constrained.
- The Land Premium: Your focus should be on properties with a high land-to-asset ratio. This strategy leverages critically low vacancy rates (below 1%) to ensure rental stability while the land component delivers the capital growth.
- Supply Risk Check: This strategy is protected by strict due diligence. Use data to monitor the risk of future over-supply. E.g. If the average Building Approval (BA) activity across the 5km catchment around a target suburb exceeds 8%, it signals a heightened risk of supply that could temper long-term capital growth.
🏙️ Queensland (QLD): Bypassing the Unit Noise for Land
Brisbane’s unit market has seen strong annual value growth, but for the disciplined investor, this is a short-term affordability response, and the supply pipeline for units remains vulnerable.
- The Land Anchor: The enduring strategy in QLD is to secure houses or villas within growth corridors and desirable middle rings, focusing on suburbs underpinned by employment and infrastructure (like the 2032 Olympics). Here, the low vacancy rates (around 0.9%) ensure your land-rich asset generates strong rental returns while benefiting from genuine capital growth driven by population demand.
- Unit Role (Affordability Gateway): If units are considered, they should be viewed strictly as an affordability gateway; a low-cost, positively geared entry point to build equity and boost borrowing capacity, with the explicit goal of upgrading to a land-rich asset later.
🏦 New South Wales (NSW): Manufacturing Land Value
In the high-cost Sydney market, securing an entire house block is difficult but non-negotiable for long-term wealth. The strategy shifts to maximizing the financial return on the land you do secure.
- Maximize Land Use: The core approach is to target properties that allow for value-add or dual income potential, such as adding a granny flat or purchasing a duplex. This strategy allows an investor to derive two income streams from one scarce piece of land.
- The Positive Gearing Lever: This manufacturing strategy is designed to achieve positive gearing (rental income produces a surplus). This cash flow surplus improves the investor’s borrowing capacity, allowing them to secure the next piece of land faster.
The Land Investor’s Mindset: Focus on Implementation
The key difference between a successful property investor and a first home buyer is that the investor’s goal is to build a portfolio of assets that follow the timeless rule: land is the non-replicable component that drives wealth.
A great idea is nothing without implementation. You must commit to focused effort. The ultimate strategy is to secure land-rich assets that provide an immediate cash flow surplus to continually increase borrowing power, thereby accelerating the path to financial freedom.
🚀 Take the Next Step: Your Land Investment Action Plan
Knowing the data is only the first step; the power is in the execution. If you are ready to move past the ambiguity and secure your land-based portfolio, here are three actionable steps you can take today:
- Define Your Destination: Use a wealth creation calculator or template to set a clear, long-term portfolio goal and target passive income before analyzing another suburb. This prevents aimless investing.
- Lock Down Your Process: Commit to a rigorous, data-driven methodology. Identify your three top land-scarcity indicators (e.g., zoning, BA approvals, land-to-asset ratio) and spend the mandatory 3–4 hours of focused analysis per week on your suburb shortlist.
- Secure Your First or Next Property with Confidence: To eliminate guesswork and accelerate your success in securing land-rich assets, I offer one-on-one mentoring and coaching designed to streamline your process, optimise your strategy, and partner with you to confidently acquire your next investment property in a high-performing market.
Don’t wait for the perfect time; build the perfect portfolio.