26 Jan 2024

Australia’s property markets in 2024

From the desk of Tiron Manning, REBAA Regional Representative

Australian property markets have been fighting opposing forces throughout the past few years. While demand was being stymied by high cost of living, rising interest rates, restrictive lending and economic uncertainty, supply has been tight due to higher construction costs and the rental crisis.

Yet throughout it all, real estate has proved itself a resilient asset class. Most major markets ended the year in positive territory with Perth, Brisbane and Adelaide being three standouts.

But past performance is no guarantee of future returns.

Here some thoughts on where markets might head in the next 12 months, and why our buyers’ agent roles will be crucial in protecting consumers.

Market direction

As we all know, not all markets are created equal. We will see performance vary across locations and property types this year.

Local factors always come into play. Regions with substantial infrastructure upgrades will obviously appeal to investors and homebuyers. Major centres (both metro and regional) with diverse economic bases should also do well. And let’s not forget about those areas where rental demand remains extremely tight – especially in the face of record immigration numbers.

The other concern is international turmoil and upheaval. We are a connected global community so conflicts overseas do impact on our domestic economic stability. Rising international tensions can result in shaken consumer confidence on our shores – and that includes property buyers and sellers.

Another area to watch will be government intervention in our markets. Incentivising first homeowners to break free of the rental market through increased rebates, for example, might push prices higher in the affordable price bracket.

And don’t forget policies that disincentivise investors away from the market. There was a hot run of legislation across state and local governments levels  that seemed to unfairly target landlords in 2023. Given we operate under free market guidelines, put upon property investors may well choose to redeploy their capital to other investment vehicles. A bad thing for easing vacancy rates and rent increases.

So, with those caveats in place I will says this – if all things remain equal (and there’s no guarantee of that, of course) I suspect we will continue to see capital city markets enjoy more positive momentum. Adelaide, Brisbane and Perth will take the lead, especially in the first six months of the year. Sydney and Melbourne should also end the year in positive territory too.

Buyers’ agent

2024 will be a year when we will be required to really step up on behalf of our clients.

In a climate of economic uncertainty, everyday mum-and-dad property purchasers will be confused and bewildered on multiple fronts – from the direction of home prices and sales activity through to difficulty obtaining finance and understanding any legislative changes.

The truth is the year will be a golden opportunity for skilled, experienced BA’s to step up and level the field for buyers. No doubt our prominence will grows in the Aussie market and REBAA will be at the forefront of educating the public and advocating on our behalf.

Every REBAA member has a responsibility to deliver the most professional possible service and maintain the highest ethics. It’s well worth the effort in helping grow your business success while supporting your industry and BA community.