As we approach 2024, the Australian property market continues to navigate through a landscape influenced by rising interest rates and a nationwide housing shortage. Despite these challenges, growth in various regions remains strong, particularly in areas with high demand and limited housing supply.
SYDNEY, September 30, 2024 (Ecnetnews.com)
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The Reserve Bank of Australia’s recent increases in interest rates have raised concerns for many property buyers and investors. With higher borrowing costs, prospective buyers are re-evaluating their financial capacity, leading to shifts in market behaviour. However, contrary to expectations, property prices in several regions continue to rise. This is particularly true in cities like Brisbane, Perth, and Adelaide, where strong demand for housing and limited availability have kept prices on an upward trajectory.
Zaki Ameer of DDP Property says, “In Brisbane, for instance, we’ve seen a steady influx of buyers drawn to its relatively affordable housing compared to Sydney and Melbourne. The city’s growth potential and high rental yields make it a popular choice for investors looking for solid returns.”
One of the key drivers of the current market dynamics is the housing shortage across Australia. Ongoing challenges in the construction sector, including labour and material shortages, have significantly slowed the delivery of new homes. This delay in supply is pushing property prices higher, particularly in regions with solid demand.
Investors are exploiting this situation by focusing on existing properties in high-demand areas. With new homes delayed, competition for available properties has intensified, leading to market price growth.
While capital cities continue to perform well, regional areas are becoming increasingly attractive to homebuyers and investors. Places like Wollongong and Geelong are growing in popularity due to their affordability and lifestyle appeal. These areas offer a unique combination of proximity to major urban centres, beautiful coastal locations, and more relaxed living conditions.
As more buyers and investors look beyond the traditional city markets, these regional areas are experiencing significant property value growth. This trend will continue well into 2024, offering exciting opportunities for those willing to explore outside the major metropolitan areas.
What Lies Ahead
The Australian property market is expected to remain strong, though growth may slow slightly in certain regions. The ongoing housing shortage, tight rental markets, and potential future changes in interest rates will continue to influence market dynamics. However, the fundamentals of high demand, especially in key growth areas, suggest that property will remain a solid investment.
Source: DDP PROPERTY
