Return of Property Buyers Boosts Australian Real Estate Market - Property Inc

Return of Property Buyers Boosts Australian Real Estate Market

Recent data suggests a resurgence in the Australian property market, driven by property buyers returning to the market. According to the latest ABS lending figures, property loans in August rose by 2.2% from July, indicating an increase in buyer activity following the Reserve Bank of Australia’s decision to maintain the cash rate at 4.1% for the fourth consecutive month.

“Since February 2023, the number of new owner‑occupier loans appeared to have returned to levels seen before the COVID pandemic began, although well below the peak in January 2021,” said ABS head of finance statistics Mish Tan. Furthermore, the sentiment was echoed by Suncorp Bank’s head of home lending product, Karen Walsh, stating that the data showing buyers returning to the market was anticipated. She added, “Suncorp Bank home lending data supports the ABS indicators showing that buyers are returning to the market with our volumes of new home lending increasing during the month of September.”

Canstar group executive, Steve Mickenbecker, provided insight into the property pricing situation. “Property prices continue to defy interest rate gravity, but in spite of recent signs of increasing seller interest, price increases appear more underpinned by undersupply than rampant demand,” he mentioned. This sentiment is validated by insights from CoreLogic that show cities like Adelaide, Brisbane, and Perth experiencing an undersupply of housing, with supply still 40% below the five-year average.

Looking ahead to 2024, real estate trends anticipate a shift in the market, thanks to stabilized interest rates and an increased availability of homes2. Noted property expert John McGrath has identified several suburbs across Sydney, Melbourne, and Brisbane that are expected to outperform in the coming year2. Suburbs such as Gordon and Glenorie in Sydney, Flemington and Elsternwick in Melbourne, and Hamilton and Albion in Brisbane are among the top picks for potential growth and desirability.

Sydney’s property prices, after plummeting by 13.8% from January 2022 to January 2023, are witnessing a revival2. Regions such as Gordon, Curl Curl, and Fairfield, each with their unique offerings, are anticipated to draw significant interest from potential homeowners.

In Melbourne, despite a recent downturn in selling activity, suburbs like Flemington and Point Cook are recognized for their growth potential and liveability. Moreover, regional Victoria’s Mansfield is also gaining traction due to its proximity to the Mt Buller ski resort, making it an ideal location for winter sports enthusiasts2.

Brisbane, on the cusp of hosting the 2032 Olympic and Paralympic Games, is seeing infrastructure growth and strong population influx. Suburbs like Hamilton, which will house the athletes’ village for the 2032 Olympics, and Albion, with its rich history and contemporary amenities, are poised to be in high demand.

In conclusion, the Australian property market, underpinned by strategic rate decisions and optimistic economic indicators, is expected to see renewed vigor, especially in the highlighted suburbs. Potential homeowners and investors should keep a keen eye on these promising areas.

References:

Property buyers returning to market, data shows. By: Tracey Prisk. ↩ https://www.mpamag.com/au/news/general/property-buyers-returning-to-market-data-shows/462766 

Aussie suburbs set to boom in 2024. By: News Corp Australia. ↩ https://www.realestate.com.au/news/aussie-suburbs-set-to-boom-in-2024/ 

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