Investors can expect significant changes in the Australian property market in 2024, including both obstacles and promising opportunities. The landscape is changing quickly with higher interest rates, growing rental yields, and a notable increase in apartment approvals.
Experts foresee ongoing demand for high-density housing, coupled with a surge in renovations, as homeowners and investors aim to take advantage of rising property values.
As the economy adapts to these shifts, grasping the essential trends will be vital for successfully navigating the market this year. Take a glimpse at the trends influencing the 2024 Australian property market and what investors can anticipate as we move ahead.
The main trends that affected the real estate market in 2024
59% of Australian investment properties had losses, while 41% made profits in 2016-17.
- Powerful Investor Activity
The Australian Bureau of Statistics’ 18% rise in new investor loans suggests that property investors are returning strongly.
Key Stat: 18% increase in new investor loans. 1.9% rise in investment loans in November.
Rising rental yields and long-term capital growth possibilities help to explain this comeback in investor activity: the property is a profitable investment even in the demanding interest rate environment.
- Rising High-Density Emphasises Living
Apartment permits in Australia are booming. Building on a 17.4% rise in October, .
Apartment approvals in November 2024 rose by 6.7%. Particularly in big cities, this tendency emphasizes the increasing need for high-density housing.
Important statistic: Rising demand for rental properties in high-density locations drives a 6.7% increase in apartment approvals in November and a 17.4% surge in apartment approvals in October.Apartments are increasingly becoming the preferred choice for both investors and tenants, as the affordability of houses remains a challenge. Expected to last in 2024, this trend presents chances for investors wishing to join the urban property market.
- Renting Growth: Rental prices keep rising despite the declining economy and growing rates of interest. According to PropTrack figures, nationwide rents have increased by 1.8%; capital city rentals have a median of $600 per week. Low vacancy rates guarantee ongoing rental increases over the next reasonable period.
Key Stat: 1.8% rise in national rentals
– In capital cities, median weekly rent is $600. Record-low vacancy rates
This tendency offers landlords a chance to guarantee high rental returns, particularly in metropolitan regions where demand still exists.
- A Horizon Renovation Explosion: Renovating homes is becoming a more appealing approach to boost value since loan rates could be lowered and construction costs are stable. Given the rising house prices, we anticipate that both homeowners and investors will turn to renovations as a reasonably cost-effective approach to enhance property value.
Key statistics include predicted interest rate decreases, stabilising building costs, and high house price increases throughout the last few years.
Renovations give investors a means to release more value without having to contend in a very competitive property market.
2025 Strategic Decisions
Rising rental returns, more investor activity, and an apartment demand all point to an intriguing prospect for property owners for 2025. Navigating this market, however, will need a strong awareness of interest rate dynamics and the changing desire for high-density living.
Investors that want to thrive should keep educated, consult professionals for financial guidance, and be flexible enough to fit the state of the market.
As we look toward 2025, strategic decision-making will be crucial for long-term success.
Don’t navigate these changes alone reach out to AskFinancials today!
Call us now to clear your doubts and make well-informed investment decisions for 2025.
