We recognise that, across much of the country, housing supply constraints driven by government regulation and elevated construction costs are likely to persist. At the same time, demand is expected to remain resilient, supported by population growth, strong employment conditions, favourable lending practices, and meaningful government incentives. On balance, this suggests that the broad-based growth we have become accustomed to should continue, albeit at a more moderate pace. This moderation reflects an interest rate environment that has been revised upward rather than downward, though it remains manageable in the long term.
But what about the holding costs of property? This has a very real impact when going through a family law settlement event, often protracted over years, which, given the increases reflected in the bills sitting on my desk right now, is worth thinking about.
For example:
Body Corporate Fees – Annual body corporate levies have increased significantly across the market. In many cases, the rate of increase accelerates as buildings age, largely because sinking funds have not been sufficiently provisioned to keep pace with rising construction costs and escalating maintenance requirements. As a result, special levies are being imposed more frequently on individual lot owners to cover funding shortfalls. These additional charges can have a material impact on both the value and holding costs of common-title properties
Council Rates – Council rates continue to rise nationally. While most councils aim to limit increases in line with CPI, some properties have experienced higher than average increases due to reassessments of underlying property values.
Land Tax – For properties not held as a principal place of residence, land tax becomes payable once the unimproved value exceeds relevant thresholds. This state-based tax varies by jurisdiction and can represent a significant additional cost for some property owners.
Utility Charges – Increases in water and electricity charges are well documented, and current forecasts indicate that upward pressure on these costs is likely to continue.
Maintenance Costs – The cost of property maintenance has increased substantially across all trades and is expected to remain elevated. This is particularly pronounced in Queensland, where upcoming Olympic-related demand is placing additional pressure on labour and materials
Interest Rates – Interest rate movements are on the move apparently according to the money markets with increases predicted in the first half of 2026.
While the continued growth in property values is positive, and notable given the absence of a broad-based market correction for many years, this growth is not confined to equity alone. Holding costs have also increased materially, and these expenses can become particularly burdensome in the context of property settlements, where the financial impact is often acutely felt by those responsible for meeting these charges.