The Australian real estate market in 2024

The Australian real estate market in 2024 is expected to be a complex and dynamic landscape, with several key trends shaping its trajectory.

Continued Price Growth, but at a Slower Pace:

While prices are predicted to rise, the breakneck pace of 2023 is likely to moderate. Forecasts suggest a national increase of 1% to 4%, with some capital cities like Brisbane, Adelaide, and Perth potentially seeing up to 8% growth due to tighter supply.

Interest Rates and Affordability:

The Reserve Bank of Australia's (RBA) interest rate decisions will play a crucial role. While some predict a rate cut later in 2024, others believe rates will remain high, impacting affordability and potentially dampening demand.

Population Growth and Supply:

Australia's strong population growth, driven by immigration, will continue to put pressure on housing supply, particularly in major cities. This could contribute to sustained price increases, especially in areas with limited new development.

Shifting Preferences:

The rise of remote work and flexible living arrangements is influencing buyer preferences. Properties with home offices, outdoor spaces, and good connectivity are likely to be in high demand.

Rental Market Pressures:

The rental market is expected to remain tight, with high demand and potentially increasing rents. This could lead to more investors entering the market, further impacting overall property dynamics.

Here are some additional predictions for 2024:

"Flight to Affordability": Buyers may prioritize more affordable options in regional areas or outer suburbs, leading to price growth in these markets.

"YIMBYs" vs. "NIMBYs": The debate between supporters and opponents of new development could intensify, impacting housing supply and affordability.

Technological Advancements: Proptech and virtual reality could play a bigger role in property marketing and sales.

It's important to remember that these are just predictions, and the actual market behaviour may differ. However, understanding these trends can help you make informed decisions about buying, selling, or investing in Australian real estate in 2024.