Property prices throughout Australia exceeded predictions in 2023, bouncing back despite ongoing interest rate increases. The median home value nationwide experienced a complete resurgence in the past year, driven by the overarching housing shortage, which exerted upward pressure on both prices and rents.
6 Factors Driving Further Property Price Growth in 2024
A Mismatch of Supply vs Demand Australia's housing market is currently characterised by a significant imbalance between supply and demand. Demand is continually rising due to factors such as a growing population, increasing urbanisation, and an influx of new immigrants.
A Relatively Strong Australian Economy The country's minimal unemployment rate, coupled with the spending initiatives and infrastructure projects by both the Federal and State Governments, will sustain the momentum of economic expansion.
Rental Crisis Australia is experiencing a period of very low rental vacancy rates and rising rent levels, which has led to what is widely recognised as a ‘rental crisis’. This means that, as a property investor, your cash flow position will likely only improve over the next few years.
Relatively Low Stock Levels
We anticipate that the level of growth witnessed last year, characterised by numerous areas experiencing double-digit price increases, is unlikely to be replicated. However, the fundamental supply and demand gap will likely remain unchanged for the foreseeable future. Therefore, it's reasonable to expect ongoing rises in both property prices and rents, particularly if you've invested in a strategically advantageous location.
Increasing Consumer Confidence The ongoing stream of adverse news and worries regarding the cost of living, escalating interest rates, and inflation has deterred numerous Australians from making significant financial commitments, such as purchasing a home or investment property, in recent years.
Nevertheless, it seems probable that more buyers will enter the market in 2024 as they observe inflation stabilising, interest rates likely reaching their peak, and the economy showing resilience contrary to the predictions of pessimists.
This scenario presents a favourable opportunity for those who can enter the housing market ahead of the crowd.
How to Excel As An Investor in 2024
Whether you're a novice investor seeking a proven property investment approach, an established investor facing a roadblock, or simply in need of an impartial second opinion on your situation, book a call with a Cameron Bird Property Investment specialist to get the conversation started.
Here's how we can assist you:
Clarify your financial objectives
Evaluate the feasibility of your goals, especially considering your timeframe
Track your progress towards your objectives and determine if your property portfolio aligns with your aspirations
Explore avenues to optimise wealth accumulation through property investment
Identify potential risks that may have eluded your attention