2024 Australian Property Market Predictions: Insights & Opportunities for Investors 

As we move into 2024, Australia’s property market continues to be a hot topic of discussion, with experts making bold predictions. Based on data from sources such as Oxford Economics, we can expect some significant price growth across the major cities. These predictions paint a picture of a dynamic market, influenced by supply shortages, high immigration, and low distressed listings, making it essential for buyers, investors, and homeowners to stay informed. 

House Prices Expected to Skyrocket 

According to the latest forecasts by Oxford Economics, median house prices in Perth and Sydney are expected to hit record highs by 2027. The firm predicts that Sydney’s median house price will surge to $1.93 million, while Perth is anticipated to reach $1.05 million over the same period. This price growth, which ranges from 16% to 30% across different cities, is driven by multiple factors, including undersupply of housing and high demand from overseas migration. 

Here’s a quick look at the predicted price increases across major cities: 

• Sydney: $1.93 million (18% increase) 

• Melbourne: $1.28 million (21% increase) 

• Brisbane: $1.21 million (19% increase) 

• Adelaide: $950,000 (16% increase) 

• Perth: $1.05 million (30% increase) 

• Canberra: $1.17 million (19% increase) 

• Hobart: $860,000 (33% increase) 

• Darwin: $700,000 (24% increase) 

The overall combined capitals are predicted to grow by 20%, reaching an average of $1.34 million by mid-2027. 

Factors Driving the Property Market Surge 

1. Undersupply of Housing 
   One of the fundamental reasons for this price surge is the ongoing shortage of housing. Australia’s goal is to build 1.2 million homes by 2029 to meet demand, but experts suggest that the country is already falling behind. There’s a projected shortfall of over 110,000 homes, which is likely to create even more upward pressure on prices. With the lack of supply, it’s unlikely that this demand will be met in the next three years, causing prices to rise. 

2. High Immigration Levels 
   Australia’s net overseas migration is running at a record high, with a surge of nearly half a million people expected. This influx includes a growing number of foreign buyers, downsizers, and cash buyers, contributing to the overall demand for housing. Despite high interest rates, the demand created by immigration is expected to far outweigh any affordability issues, driving prices higher. 

3. Interest Rates and Lending Conditions 
   While interest rates are higher than pre-COVID levels, they have not had the dramatic effect on property prices that some had expected. In fact, new home loans and mortgage approvals have started to trend upwards. For instance, Google searches for investment properties have increased, indicating that more people are re-entering the property market. This trend suggests that, despite the economic headwinds, there’s a strong appetite for investment. 

4. Low Distress Listings 
   Even though interest rates have risen, the number of distressed property listings has dropped across all major cities. Banks are working with borrowers to help them manage their loans, and many people have been able to keep up with their payments by finding second jobs or tapping into offset accounts. As a result, the expected surge in forced property sales has not materialized, which has further stabilized the market. 

How to Take Advantage of Property Price Growth 

If you’re looking to invest in Australian property in 2024, there are several strategies you can adopt to capitalize on the expected price growth: 

1. Target Undervalued Suburbs 
   Even in booming cities like Perth, there are still suburbs where properties are available for under $500,000. By buying in these undervalued areas, you stand to gain from significant price appreciation in the coming years. 

2. Focus on High-Demand Locations 
   Look for properties in areas that are likely to benefit from population growth and infrastructure development. For example, Brisbane and Perth are expected to see rapid growth due to their increasing population and affordable property prices compared to Sydney and Melbourne. 

3. Long-Term Investment 
   Property investments in Australia tend to yield the highest returns over the long term. While the market may fluctuate in the short term, those who invest strategically in high-growth areas can benefit from compound returns as prices rise over time. 

Using Property Dollar to Track Your Portfolio 

As the Australian property market evolves, keeping track of your investments is crucial. Property Dollar’s platform offers you the tools to manage and monitor your property portfolio effectively. By tracking property prices, rental yields, and market trends, you can ensure that your investments are aligned with future growth predictions. 

Whether you’re an investor or a homeowner, Property Dollar helps you stay informed, ensuring that you are ready to make the most of the market shifts and capitalize on opportunities as they arise. Stay ahead of the curve and take control of your property portfolio with Property Dollar. 

Disclaimer: The information provided in this blog is general in nature and not intended to be personalized financial advice. Please consult a financial advisor before making any decisions regarding your finances.