“Australia’s Dynamic Property Market in 2024: Key Trends and Surprises” - Property Inc

“Australia’s Dynamic Property Market in 2024: Key Trends and Surprises”

In 2024, the Australian property market is experiencing a period of notable transformation, with significant shifts in rental prices and varying patterns in house prices across different cities. This article draws insights from two pivotal reports: “Navigating the Winds of Change: Australia’s Property Market in 2024” by Geeta Pillai and “Brisbane overtakes Melbourne as Australia’s third most expensive city to buy property for the first time in 15 years” by Meg Bolton and Peter Quatrocelli.

Rising Rental Prices and Diverging House Prices

Geeta Pillai, in her article, highlights a national surge in rental prices projected at 7 to 10 per cent, with Perth leading the increase at 10 to 15 per cent. Contrasting these rises, Sydney and Melbourne may see a dip in house prices by up to 4 per cent and 3 per cent respectively. This divergence is particularly intriguing, as it reflects the complexity of Australia’s property landscape. Pillai quotes from the Housing Boom and Bust Report 2024, “Amid these fluctuations, the housing construction pipeline is expected to hit a low point, with the lowest output in 11 years.”

The Brisbane Phenomenon

On the other hand, Bolton and Quatrocelli’s report throws light on a remarkable development in Brisbane. For the first time in 15 years, Brisbane has outpaced Melbourne as Australia’s third most expensive city for property. Corelogic data reveals a 50 per cent increase in home prices in Brisbane since 2020. This shift is significant, considering the long-standing dominance of Sydney, Canberra, and Melbourne in the property market. Eliza Owen, Corelogic’s head of research, notes, “Brisbane would remain on top in the ‘tussle’ against Melbourne in the short term, with prices in Queensland’s capital continuing to rise.”

Personal Stories Amid Market Changes

The impact of these market changes on individuals is poignantly illustrated by Michael Deacon’s family story in Bolton and Quatrocelli’s article. Deacon’s innovative approach to combine incomes with his mother-in-law for a multi-generational home reflects the adaptability of Australians in response to the property market’s challenges.

Looking Ahead

Pillai’s analysis suggests that the Australian housing market in 2024 is a mix of moderated growth, economic factors, and divergent regional markets. Despite challenges like high interest rates and weaker conditions in the first half of the year, the second half could see growth spurred by stage three tax cuts. She emphasizes, “The second half of 2024 could see the enactment of stage three tax cuts, primarily benefiting higher-income earners and possibly stimulating demand for pricier housing.”

Conclusion

The year 2024 marks a critical juncture in Australia’s property market, characterized by robust growth in rental prices, a unique surge in Brisbane’s property values, and an overall complex and regionally diverse market scenario. As Australians navigate these changes, the insights from experts like Pillai, Bolton, and Quatrocelli offer valuable perspectives on what lies ahead in this dynamic landscape.

References:

https://bnnbreaking.com/world/australia/navigating-the-winds-of-change-australias-property-market-in-2024/ 

https://www.abc.net.au/news/2024-01-11/brisbane-melbourne-corelogic-property-prices-rental-increases/103305324 

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