The Future of the Australian Property Market in 2024

TLDRIn 2024, the Australian property market is expected to soften, particularly in the first half of the year. Higher interest rates and slowing economic growth will weigh on demand. However, markets in Brisbane, Adelaide, and Perth are likely to continue their strong performance. The gap between house and unit prices will narrow but houses will still command a premium. While renting is still more affordable than buying in most cases, some pockets of the market may favor purchasing. The federal government's plan to build 1.2 million homes over the next five years may help ease housing costs, but achieving this target may be challenging due to low dwelling approvals and construction pressures.

Key insights

💡The Australian property market is expected to soften in 2024, particularly in the higher-end segment.

📉Interest rate hikes and slowing economic growth will dampen demand in the housing market.

📈Brisbane, Adelaide, and Perth are likely to continue experiencing strong growth in their property markets.

🏠Houses will continue to command a premium over units, driven by changing housing preferences and work-from-home trends.

🏢Renting is generally more affordable than buying, but in certain areas, buying may be more feasible due to rising rents.

Q&A

Will there be forced sales in the property market due to high interest rates?

—While some people may fall behind on their mortgages, overall, forced sales are expected to be contained due to low delinquency rates and Australians taking steps to manage their mortgage repayments.

Is it a good time to buy a property in Australia?

—It depends on the individual's financial circumstances and location preference. Renting is generally more affordable than buying, but in some areas, buying may be more feasible due to rising rents.

What is the outlook for the construction of new homes in Australia?

—The federal government has committed to building 1.2 million homes over the next five years. However, achieving this target may be challenging due to low dwelling approvals, construction pressures, and rising material costs.

Which cities in Australia are expected to see continued growth in their property markets?

—Brisbane, Adelaide, and Perth are likely to continue experiencing strong growth in their property markets.

How will the gap between house and unit prices evolve in 2024?

—The gap is expected to narrow, but houses will still command a premium over units due to changing housing preferences and work-from-home trends.

Timestamped Summary

00:00The Australian property market is expected to soften in 2024, particularly in the higher-end segment.

02:00Interest rate hikes and slowing economic growth will dampen demand in the housing market.

04:00Brisbane, Adelaide, and Perth are likely to continue experiencing strong growth in their property markets.

06:00Houses will continue to command a premium over units, driven by changing housing preferences and work-from-home trends.

08:00Renting is generally more affordable than buying, but in certain areas, buying may be more feasible due to rising rents.

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