Australian Housing Market 2024: A Year of Transformation and Challenges - Property Inc

Australian Housing Market 2024: A Year of Transformation and Challenges

As 2023 draws to a close, Australia’s housing market gears up for significant changes in 2024. After a year of unexpected shifts, experts forecast a mixed bag of trends for the upcoming year. Belinda Grant-Geary and Jessica Taulaga, in their insightful articles, delve into these predictions, offering a comprehensive outlook for buyers, sellers, and renters alike.

Property Values: A Regional Disparity

According to Dr. Nicola Powell, Domain’s chief of research, property values in 2024 will witness varied trends across regions. Cities like Sydney, Perth, and Adelaide could see growth between 6 to 9 percent, while Melbourne might experience minimal growth. Powell attributes potential price hikes to factors such as migration-driven population increases and possible easing of lending restrictions. However, she cautions against skyrocketing prices, suggesting a more moderated growth pattern.

Rental Market: Reaching a Tipping Point

The rental market is predicted to hit a “tipping point” due to stretched affordability, as Powell notes in her discussions with Yahoo Finance. This situation could lead to increased shared housing arrangements, impacting vulnerable groups and potentially slowing rental growth in some submarkets. The migration trend, initially tightening the rental market, is expected to stabilize, offering some relief.

First-Time Buyers: A Glimmer of Hope

2024 might present opportunities for first-time buyers. Government subsidies and schemes like Queensland’s doubled first-home buyer grant and the federal government’s Help to Buy scheme are set to assist new entrants in the market. However, Powell voices concerns that these financial incentives might inadvertently drive up prices of more affordable properties.

Addressing the Housing Crisis: The Need for Visionary Planning

Solving Australia’s housing crisis requires a focus on increasing supply through visionary planning reforms, Powell emphasizes. This approach involves building desirable homes in sought-after locations and considering the needs of an aging population. The $10 billion Housing Australia Future Fund aims to deliver 30,000 new affordable houses, but broader actions are needed to ensure housing security, especially for renters.

Market Trends and Population Growth

Echoing Powell’s insights, other experts like Panal Boustni and Peter Tulip highlight the role of population growth and government policies in shaping the 2024 property landscape. Tulip points out the significant impact of student immigration on housing demand, while Boustni draws parallels between the current market sentiment and reactions during the COVID-19 pandemic.

The 2024 Australian housing market is set for significant changes, influenced by regional disparities in property values, a shifting rental market, supportive measures for first-time buyers, and the crucial need for increased housing supply. As Powell succinctly puts it, “We really need to see more affordable houses.”


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