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Five Projections Unveiled for Australia’s Property Landscape in 2024

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5 Projections for Australia’s Property Landscape in 2024

Domain has recently disclosed its anticipations for the upcoming year in its 2024 Outlook Report. The property market has faced formidable challenges in the past year, marked by escalating interest rates, surging house prices, supply shortages, and heightened demand.

Looking ahead to the new year, Domain’s 2024 Outlook Report envisions a continued surge in both house and unit prices, sustained high interest rates, and robust population growth. As the principal of Property Brokerage Realty in Hervey Bay QLD, I find these predictions particularly relevant to our new turnkey homes market.

Dr. Nicola Powell, Domain’s Chief of Research and Economics, asserts, “We anticipate continued growth in house and unit prices, with some buyers, sellers, and renters proactively adapting to the lingering impact of the 2023 market and potential changes in 2024.”

Domain’s Five Forecasts for the Property Market in 2024

1. Interest Rate Cut to Trigger Demand

While affordability challenges and reduced borrowing capacity may limit home purchases, the outlook for buyers could brighten with a potential interest rate cut or relaxation of the mortgage serviceability buffer. The Reserve Bank of Australia’s recent interest rate hike may prompt a reconsideration of the buffer, currently set at three percentage points by the Australian Prudential Regulation Authority.

A potential reduction of the mortgage serviceability buffer from three to 2.5 percentage points could enhance borrowing capacity and stimulate demand, providing buyers with increased power and improved consumer sentiment.

interest rate cuts

2. Shift to Affordability

Some buyers may explore alternative, more affordable neighborhoods, commonly referred to as “bridesmaid suburbs.” The easing of the mortgage serviceability buffer and the possible introduction of the Federal Government’s Help to Buy shared equity scheme in 2024 could amplify the flight to affordability.

3. Rise of YIMBYs

Domain predicts a shift in housing attitudes, with a move from “not in my backyard” (NIMBY) to “yes in my backyard” (YIMBY). The year is expected to bring progressive housing and national planning reforms, encouraging urban densification and increased development.

4. Population-Driven Demand

Despite predictions of a peak in net overseas migration, strong population growth is anticipated to persist, impacting the market, especially in terms of overseas students and rental availability. The Federal Government’s Help to Buy shared equity scheme is anticipated to play a pivotal role in supporting first-home buyers.

5. Rental Markets at a Turning Point

The trend of Australians renting for extended periods is expected to continue in 2024, with Domain foreseeing a potential tipping point where rental price growth slows, likely in the latter half of the year. Dr. Powell notes that policies favoring first-home buyers could ease demand, facilitating the transition of tenants to buyers.

The Australian property landscape is constantly evolving, and 2024 will be no exception. With the impact of technology, the rise of outdoor living, and changes in demographics, the property market is set to undergo significant changes in the coming years.

Developers will need to adapt to these changes by incorporating new technologies, catering to the demand for outdoor living spaces, and creating more sustainable and affordable properties. At the same time, government policies will play a crucial role in shaping the property market and addressing issues such as housing affordability.

By staying informed and adapting to these changes, developers and homeowners alike can make the most of the evolving property landscape in 2024 and beyond.

affordable housing options

Property Brokerage Hervey Bay New Turnkey Homes

Our team of dedicated real estate agents is committed to guiding you through the process, offering insights into the impact of rate rise on the local property market. Contact us today to discover how our turnkey homes in Hervey Bay can align with your lifestyle and financial objectives. Don’t miss out on this unique chance to secure a home where affordability meets quality living – it’s more than a house; it’s a smart investment in your future.

With the ongoing land development projects and the predicted future trends in the real estate market, our turnkey homes in Hervey Bay offer a strategic investment opportunity that combines affordability with the potential for long-term growth.

As property prices continue to respond to factors such as higher interest rates and the dynamics of the market, securing a turnkey home becomes a strategic move for those contemplating long-term investments.

Explore the advantages of our turnkey homes designed to meet the demands of the current property market. Amidst the challenge of rates increased, our homes provide a secure and comfortable haven, ensuring that your investment not only aligns with your financial goals but also provides a sense of stability. The Australian Government’s initiatives, including the Help to Buy shared equity scheme, further enhance the appeal, creating opportunities for eligible transactions that could potentially earn interest over 12 months.

Turnkey Homes Buyer Bonus
New Home Packages Hervey Bay from $500K

As your dedicated real estate agents, we are committed to guiding you through the process, offering insights into the impact of rate rise on the local property market. Contact us today to discover how our turnkey homes in Hervey Bay can align with your lifestyle and financial objectives. Don’t miss out on this unique chance to secure a home where affordability meets quality living – it’s more than a residence; it’s a smart investment in your future.

*Don’t forget to ask about our $1000 Bunnings Buyer Bonus for new turnkey homes purchased through us.

You may also find this informative post an interesting read: Turnkey Homes Hervey Bay Perfect Choice for First Home Buyers Looking to Buy in 2023-24!

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2 thoughts on “Five Projections Unveiled for Australia’s Property Landscape in 2024

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