As we stand on the cusp of 2024, many experts are providing their insights on house price predictions and beyond, including the financial markets in Australia.
Let’s explore how these predictions may influence the property market and more.
1. Melbourne’s Surprising Real Estate Eclipse
Historically, Melbourne has played second fiddle to Sydney’s roaring real estate scene. However, whispers in the alley suggest a shift.
Factors like evolving job markets, cultural growth, and infrastructural developments could position Melbourne as the new Australian property darling.
Suggest Reading: Want to know more about predicted house prices in 2023 Melbourne? Learn what experts are saying in Soho’s guide.
2. A Potential Housing Market Crash
Every spike comes with the fear of a subsequent fall. The 2024 Australian property market, with its predicted highs, naturally stirs speculations of a potential crash.
While house price predictions remain a contentious topic, certain market vulnerabilities and global economic shifts might just be the triggers.
Learn more about Australian property price predictions in 2030 in Soho’s review.
3. Food Prices and Real Estate
Concerns over house price predictions could extend to food prices as well.
In a recent article from Livewiremarkets, Dania Zinurova, a Portfolio Manager from Wilson Asset Management, warns that Australian food prices will rise significantly, expecting an increase of as much as 9%.
Factors such as global supply chain issues, extreme weather events, and scarcity of land and water resources are driving this trend.
Notably, overseas entities are rapidly acquiring Australian agricultural land, with prices for this farmland per hectare increasing about 195% over the decade to 2023.
What it means for property: The surge in the value of agricultural land and the consistent rise in food prices might push investors to explore real estate opportunities in farming regions or areas with potential for agricultural growth.
4. Economic Challenges and Real Estate
Christopher Joye, Portfolio Manager & Chief Investment Officer at Coolabah Capital, anticipates Australia entering its worst corporate default cycle since the GFC and the 1991 recession.
This comes amidst growing inflationary pressures, including elevated wage costs and decreased productivity. Corporate insolvencies, particularly in commercial real estate construction and residential property development, are on the rise.
What it means for property: Investors need to exercise caution. While some areas might offer lucrative deals due to distressed sales, it’s also a period where due diligence is paramount.
The rise in insolvencies suggests that certain property markets could be oversaturated or facing financial strain.
5. Travel and Its Influence
Casey McLean from Fidelity International forecasts that the international travel boom we’re experiencing will soon bust.
This is based on various indicators, including the declining US credit card spending on travel. Interestingly, McLean mentions the shift in Chinese tourists’ behavior, moving towards domestic “staycations” and group travel seeing less popularity.
What it means for property: With international travel slowing down, regions previously buoyed by international tourists might experience softer demand in the short term.
This could impact the hospitality sector and related real estate markets. However, local tourism might witness a boost, so properties catering to local travelers might see an uptick in demand.
6. Superannuation and the Property Market
Andrew McKie of Elston Investment Management believes that Superannuation will make Australia the wealthiest nation in the world (on a per capita basis) in 20 years.
He sees millennials as a crucial demographic, poised to have the most substantial pool of real assets in superannuation.
What it means for property: As millennials tap into these vast superannuation assets two decades down the line, we might see a spike in demand for luxury real estate, travel, and leisure-oriented properties.
The focus for investors should be on the long-term trends and potential demand from this demographic.
7. Inflation and its Potential Impact
Marcus Burns from Spheria Asset Management contends that the current high inflation is temporary. He foresees AI productivity and quantum computer revolutions causing a return to low inflation.
What it means for property: Periods of low inflation can lead to more stability in the property market. Combined with technological advancements, we might see a surge in demand for properties equipped with the latest tech or positioned in tech hubs.
8. Health Trends
Lastly, Dr. David Allen from Plato Investment Management predicts the end of obesity within the next year, courtesy of new medical advancements.
This will, in turn, affect companies offering treatments related to obesity and change consumer habits.
What it means for property: Properties or regions centered around wellness and health might see a boom.
This trend also underscores the need for real estate professionals to monitor broader societal trends, as changes in health, lifestyle, or technological adoption can significantly influence property demand.
In Conclusion:
As 2024 approaches, understanding these expert insights on house price predictions can equip property investors and stakeholders to make informed decisions.
The interconnectedness of global trends, from food prices to health advancements, showcases the multifaceted influences on the real estate market. Being proactive and keeping a pulse on these shifts will be crucial for success in the coming year and beyond.
More on house price predictions in Australia
What is the property outlook for 2023?
Property prices in Australia are expected to remain relatively flat throughout the rest of 2023, according to most economists. This is due to a number of factors, including rising interest rates, inflation, and a cooling economy.
However, some economists believe that prices could still rise slightly in certain areas, such as inner-city Sydney and Melbourne.
Will house prices drop in 2024 Australia?
There is a possibility that house prices could drop in 2024, depending on how the economy performs and how interest rates move. Some economists believe that prices could fall by as much as 5%, while others believe that they could remain flat or even rise slightly.
How much will houses cost in Australia in 2025?
It is difficult to predict exactly how much houses will cost in Australia in 2025. However, if house prices do drop in 2024, they are likely to remain below current levels in 2025. However, if prices remain flat or even rise slightly in 2024, they could be higher in 2025.
What will happen to property prices in 2025?
It is impossible to say for sure what will happen to property prices in 2025. However, it is likely that they will be influenced by a number of factors, including interest rates, inflation, the economy, and government policy.
How will the property price change in Australia in 2024?
The property prices in Australia are predicted to continue rising in 2024, fueled by factors such as strong housing demand, limited housing supply, and low interest rates.
Will Sydney house prices increase in 2024?
While it is difficult to predict exact numbers, experts foresee that Sydney house prices will continue their upward trajectory in 2024, driven by high demand and limited housing supply.
How will the interest rate impact house prices in Australia in 2024?
The interest rate can have an influence on house prices. If interest rates rise in 2024, it could potentially slow down price growth in the housing market.
What can we expect from the Melbourne property market in 2024?
The Melbourne property market is expected to experience steady growth in 2024, with prices continuing to rise due to strong demand and limited supply.
How will home buyers be affected by the Australian property market in 2024?
A: Home buyers in 2024 may face increased competition in the Australian property market, which could lead to higher prices and a more challenging purchasing process.
Armed well in 2022, with significant price growth recorded in many cities and regions across the country.
What is the current state of the Sydney housing market in 2024?
The Sydney housing market in 2024 is characterized by high demand, limited supply, and rising prices, making it a competitive environment for both buyers and sellers.
Are home prices expected to rise in 2024?
Yes, home prices are predicted to continue rising in 2024, albeit at varying rates depending on factors such as location and market conditions.
What are the factors contributing to the price growth in the Australian housing market?
Several factors contribute to the price growth in the Australian housing market, including strong demand, limited housing supply, low interest rates, and population growth.
How did the housing market perform in 2022 in Australia?
The housing market in Australia performed well in 2022, with significant price growth recorded in many cities and regions across the country.
