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2024 Property Market Trends & Real Estate Predictions

It can be hard to predict the perfect time to invest in the property market.

There are always so many varied opinions and “expert” advice on property market trends and it’s the right year to buy.

The great news is that the best time to buy is when you’re ready to buy, as there will always be a location or suburb in Australia that has potential growth.

It’s about knowing where to look. Remember: markets within markets!

But it’s still important to know about general real estate market predictions and trends so that you can make informed decisions based on your personal circumstances.

So what does the Australian property market look like for 2024?

Let’s get into it!

Housing Market Trends for 2024

The Australian real estate market is shaped by a range of factors, including shifts in the economy, policy reform and other global impacts. 

The Australian property market is predicted to continue on the upward trajectory we’ve been witnessing. 

This is likely due to a steadier cash rate and growing comfort with the higher cost of living and higher cash rates. 

There are suggestions that it is unlikely that we will see the rocket-like growth experienced immediately after COVID. This is largely a result of low household savings compared to post-COVID and higher cost of living.

Indicators suggest a return to a strong Australian property market for 2024. 

Other Influencing Factors 

Population growth continues at a faster rate than the construction of homes, which has seen low vacancy rates in major cities. 

This results in rising house prices as the imbalance between supply and demand continues to tip in favour of demand. 

Higher costs when it comes to insurance rates, fees and more have resulted in some investors exiting the market. 

Taxes and policies have also been introduced, deterring some investors in the market due to the impact of these policies. 

However, with things starting to settle down, there is a prediction that investors may return to the market in 2024. 

Foreign investment has also been a factor to consider, with a steady increase in purchases from foreign buyers. 

Some of these factors may mean less than others and the extent of their impact may be too hard to predict just yet, but it’s always good to keep an eye on these various dynamics. 

What Does This Mean For Investors?

Real estate trends indicate that property can still offer investors plenty of potential for capital growth and cash flow through rental income in 2024. 

Of course, this requires careful consideration and planning to navigate any risk involved in investing in 2024. 

The following are some key considerations to think about before pulling the trigger on an investment opportunity in 2024. 

Type of property:  Consider what type of property you’ll invest in.

Residential properties are great for stable rental income and the potential for long-term growth, but commercial spaces can provide higher returns – although they introduce some complexities!

Consider the benefits and challenges of each, as well as the advantages in diversifying your portfolio to minimise risk.

Location of the property: While it’s vital to get this right no matter the year, suburb or location selection will be the key to success in 2024.

Different locations and areas will offer different levels of capital growth and cash flow.

So it’s really important to carefully analyse the data to find the perfect suburb to invest in.

Knowing the location to buy is really about knowing the data.

Some might argue it’s important to live in a suburb to truly understand its potential.

But really, it’s all about data.  

And to properly analyse the data, there are around 30-35 real data factors that should be considered. These can be things like average vendor discounting, stock on markets, building approvals, online search interests, and more!

Check out this video for a breakdown of property market predictions for 2024, with an analysis of predictions across capital cities. 

Finance options: Take considerable care when arranging your finance options.

Make sure you understand the important market trends in real estate for 2024, including interest rates and state of the local housing market to determine whether you have the financial options to mitigate risk in the current climate.

Agree to loan terms and repayment schedules that work for you and your financial situation. 

Factors like fixed-rate vs variable-rate are really important in consideration of property market trends and what is best suited for investing going into 2024. 

The bottom line…

For experienced investors and newcomers alike, there is plenty of financial wealth to acquire in 2024 through property investing. 

With property prices continuing to rise, there will be the opportunity to capitalise on growth potential. 

Property investing in 2024 will reward the savvy and informed investor – the ones who take the time to develop their education and understanding of the market.

PK Gupta
Published: 15 May 2024

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