Latest Trends in the Australian Property Market and 2024 Predictions

Latest 2024 Australian Property Market Predictions

Published: 15th December 2023

G'day, property enthusiasts!

Rasti Vaibhav here, bringing you the latest and most exciting developments in the Aussie property market for the week ending 15 December '23.

From surprising spikes in home lending to forecasted price rises and critical tax changes, we've got a lot to cover. So, buckle up as we delve into these trends that are shaping the future of real estate down under.

This is the insight you don't want to miss – whether you're buying, selling, or just keenly watching the market.

Rise in Home Lending: A Positive Indicator for the Market

Exciting times are ahead for Australia’s real estate sector!

The Australian Bureau of Statistics has just revealed an uplifting stat: there's been a 5.4% increase in new mortgage commitments, the first year-on-year growth in almost 18 months. This surge signifies a rebound in confidence, with owner-occupiers, first-home buyers, and investors all actively participating.

Specifically, owner-occupier loans rose by 5.6%, investor lending went up by 5%, and first-home buyer lending saw a significant rise of 6.4%.

Construction loans to investors have also experienced a remarkable growth of 17.2%. Eliza Owen from CoreLogic suggests this trend is driven by investors keen on off-the-plan apartments. However, there's a note of caution for owner-occupiers who might be apprehensive about the rising construction costs and extended timelines.

Aerial view of vibrant Australian cities, illustrating the bustling real estate market.

Where Homes Are Selling Fastest Across Australia

The property market's vibrancy is evident in the speed of sales across various regions. In Western Australia, Leda is leading the way, with properties being sold in just eight days on average. New South Wales isn't far behind, with homes in Normanhurst and Dean Park finding new owners within 13 days. Here's a snapshot:

Leda, WA: 8 days
Normanhurst, NSW: 13 days
Watsonia North, VIC: 21 days
Brendale, QLD: 18 days
Hillier, SA: 39 days
Rosney, TAS: 22 days
Nakara, NT: 74 days

Stylish and spacious living room in a modern Australian home, reflecting contemporary real estate trends.

Predictions for 2024: Cities Leading in Property Price Growth

Looking ahead, smaller capital cities like Brisbane, Perth, and Adelaide are predicted to set new records in home prices in 2024. According to PropTrack’s December Property Market Outlook report, we can expect a national price growth of between 1% and 4% in the next 12 months. Cameron Kusher, the director of economic research at PropTrack, highlights that low stock levels and high buyer demand, coupled with a shortage of new constructions at a time of strong population growth, will fuel this trend.

The expected price increases in different cities are quite telling:

Perth: +5% to +8%
Adelaide: +4% to +7%
Brisbane: +3% to +6%
Sydney: +2%
Melbourne: +1% to +4%

The Upcoming Changes in Rental Markets

Renters and investors need to brace for some significant changes. Perth is set to experience the highest rental increase in Australia by the end of 2024, estimated at 9.5%. Melbourne, Sydney, and Brisbane are also anticipated to witness considerable increases. This is particularly concerning as Finder's head of consumer research, Graham Cooke, points out that 42% of renters are already struggling with current rates. Despite efforts to manage immigration, rental prices are expected to continue their upward trajectory.

Australian real estate agent engaging with diverse clients, showcasing property portfolio.

Foreign Investors Alert: Tax Increase on the Horizon

Foreign investors, take note! The Australian government is taking bold steps to ease the national housing crisis by increasing taxes on foreign investment. The new policy will see a tripling of foreign investment fees for established homes and a doubling of vacancy fees for properties purchased since May 9, 2017. Treasurer Jim Chalmers asserts that these changes aim to align foreign investment with the government's agenda of increasing affordable housing supply and spurring economic growth.

In conclusion, the Australian property market is showing dynamic changes, presenting both challenges and opportunities. If you're navigating this landscape, whether as a first-time buyer, investor, or looking to sell, understanding these trends is crucial.

Rasti Vaibhav, The Architect of Property Wealth

Remember, understanding the market's nuances is key to making informed decisions. Eager to dive deeper into what these trends mean for you? I'm here to help you navigate these waters. Book a one-on-one with me to discuss your personal circumstances. Alternatively, join our educational workshops to expand your knowledge.

Let's embark on this journey to property success together!

Disclaimer: While the content we've shared is chock-full of information, remember it's general in nature. Your financial journey is unique, so it’s crucial to have a yarn with your own adviser before making any moves. This isn't personal advice, just a bit of friendly wisdom to ponder. Always tailor your decisions to your individual situation for the best outcomes.

Abstract representation of Australian property market trends with upward arrows and housing icons for 2024