The 2024 property market within Australia is shaping up to be very interesting.
There are a few key factors in 2024 which will have a significant income on prices being Migration, Building Approvals and Construction & Interest Rates.
Whilst these aren’t the only variables that will have an impact on the Australian Property Market, they are shaping up to be crucial.
Let’s take a deeper look into why they’re significant:
MIGRATION
Exceeding 450,000 newcomers in 2023, the housing shortage is projected to endure.
Although heightened migration can contribute to labour in crucial sectors like construction, the need for additional housing units becomes imperative to accommodate the expanding population.
Because of this migration it’s hard to see the pressure on prices and low vacancy rates changing in 2024
BUILDING APPROVALS AND CONSTRUCTION
A key driver to watch in 2024 is the amount of building approvals, with changes to planning laws and zonings, vacancy rates, and new infrastructure announcements becoming increasingly crucial.
If the building approvals continue to run at an all time low and building costs remain as high, then getting new stock off the ground will be slow and painful which will only increase the emphasis on the housing crisis.
The undersupply as a result of this will keep property prices high in many locations.
INTEREST RATES
Interest Rates is always a talked about point when it comes to property trends in Australia.
However, it’s important to consider that as a nation we’ve seen a cash rate from 0.10% to 4.35% in under two years and yet property prices have continued to rise and consumer sentiment around property leads us to believe that property prices will continue to increase.
Any rate reduction will massively increase consumer sentiment and will also increase their borrowing power which will no doubt put pressure on property prices.
Taking these factors into account makes for a very interesting Property Market in 2024.
Indications certainly point to the prices of property continuing to increase. If you’re looking into buying a property or refinancing now is the best time.
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