A Comprehensive Guide for Property Investors in 2024

As the Australian property market emerged robustly from 2023, defying expectations with strong performance across both regional areas and capital cities, investors are keenly eyeing their next moves in 2024. The resilience of the market, coupled with the anticipation of continued growth, makes for a promising outlook for those looking to invest in real estate down under.

Strength in Diversity: 2023’s Market Recap

The market stayed strong in 2023, with the national average house price reaching $753,654, according to CoreLogic. This resilience is attributed to a confluence of factors, including a lack of stock driven by building industry shortages and a surge in post-pandemic migration. The rental market flourished as well, with real estate agents reporting re-tenanting of vacant apartments within a day and significant rent increases — 13.2% for houses and 23.7% for units between September 2022 and 2023. This scenario is particularly favourable for investors, promising low vacancy rates and the ability to charge premium rents.

Forecasts for 2024: What Experts Predict

Looking ahead, experts remain optimistic, projecting national price rises of 5 to 7 per cent, and up to 9 per cent in some cities. However, potential challenges such as additional interest rate hikes and state-led housing initiatives could temper these gains. Additionally, changes in policy affecting overseas investors, including increased application fees and vacancy fees, could impact the market dynamics, potentially reducing competition from abroad while encouraging foreign investment in Build-to-Rent projects.

Investment Opportunities Across the Board

For those contemplating where to invest in 2024, the landscape appears promising across a broad spectrum of locations. Experts highlight the potential in both regional areas, like Rockhampton and Rockingham, and metropolitan areas, with Sydney poised for up to 9 per cent growth. Investment opportunities are abundant, from the vibrant streets of Sydney’s Engadine, Northmead, and Mortdale to the tranquil settings of regional towns like Bundaberg and Mount Gambier, each showcasing significant growth potential. If you want to know more about where we’re investing, contact us today.

Strategic Investment: Making Informed Choices

Choosing the right investment property involves a blend of strategic considerations, from identifying growth areas and upcoming developments to ensuring proximity to essential amenities. Investors are encouraged to aim for properties that appeal to potential tenants through strategic upgrades and thoughtful selection based on the target renter demographic. Moreover, assembling a team of professionals, including accountants, mortgage brokers, and real estate agents, is crucial for navigating the investment landscape effectively.

The Regional Market: A Closer Look

Regional markets, while experiencing more subdued growth in 2023 compared to the explosive gains from 2020 to 2022, still offer compelling opportunities for investors. These markets present a blend of affordability, rental yield potential, and capital growth prospects, making them attractive to investors seeking value beyond the major urban centres.

The Road Ahead

The Australian property market in 2024 is shaping up to be a landscape of opportunity, diversity, and strategic potential. With careful consideration of market trends, expert forecasts, and regional dynamics, investors can navigate this complex terrain to find success in their real estate endeavours. Whether it’s making a foray into the bustling capital cities or tapping into the growth potential of regional hotspots, the key to success lies in informed decision-making and strategic investment planning.