What is the Australian property market forecast for 2024? It’s clear that the banks’ economists and property commentators continue to get their property market forecasts wrong.
Property investment involves more than just financial commitment—it requires strategic foresight, informed decision-making, and a good understanding of the property market. If you are after sustainable returns and long-term growth, you must learn how to overcome uncertainties, risks, and evolving property market trends.
From understanding property market analysis to identifying risks and assessing market outlooks, there are key considerations that can shape your investment strategies and outcomes.
In the latest podcast episode, Simon Pressley of Propertyology discusses the outlook of the Australian Property Market in 2024. He provides detailed market analysis for real estate and practical tips to inform your investment strategy and stay ahead of the shifts and opportunities coming your way.
With so many “expert” predictions being inaccurate, who can you trust? Whether you’re a seasoned investor or starting on your property journey, this episode will help you better understand the property forecast of 2024.
Diversification and Risk Management in Property Investment
High mortgage sizes have the potential to worsen your financial vulnerability during an economic downturn and can lead to substantial devaluation of your property assets.
In periods of a sharp rise in interest rates or weak local economies of an individual town or city with a high mortgage, you can see a big reduction in property values.
By examining various risk factors using historical data and property market trends, you can avoid potential pitfalls and try to safeguard your investment portfolio. You need to take a holistic approach to risk management.
It is actually scientifically proven that humans have a default negative bias and tend to gravitate towards worst case situations. There is a big difference between perceived risk and real risk, and real risk is something that can be quantified. You must rely on data-driven property market analysis rather than succumbing to speculation or external influences when making investment decisions.
Understanding Economic Diversity
Market analysis for real estate is the foundation of informed property investment decisions. Economic diversity acts as a key indicator of property market stability as regions with diverse economies are less prone to market fluctuations.
The appeal of regional locations for property investors is that they often have lower risk profiles and greater capital growth potential due to their economic diversity and affordability.
Factors like job creation, housing demand, and the supply pipeline are critical for you to consider. Assess these factors to help you gauge investment potential more accurately.
Some investors exclude Perth from investment recommendations due to the risks associated with overreliance on specific industries. Perth’s stagnant property values are often attributed to its dependence on the mining sector. Even though Perth is not a mining town a very large portion of Perth’s economy hinges on the success of Western Australia’s mining sector.
There are lots of regional locations that are significantly more diverse than the Perth economy and therefore represent a lower risk. And they still have great capital growth potential.
Places like Townsville and Cairns have an exciting outlook. In New South Wales, it’s more inland locations like Dubbo, Wagga, and Albury–Wodonga.
These regional towns across Australia possess economic diversity, making them attractive investment destinations. Affordability is often something these regional markets have, further increasing their appeal if you want stable yet lucrative property investment opportunities.
Economic diversity helps mitigate risks and foster growth within property markets. Regions that have a wide range of industries and economic activities are better equipped to survive market downturns and capitalise on emerging opportunities. This resilience stems from a varied economic landscape that reduces dependency on any single sector, therefore increasing the overall market stability.
The Australian Property Market Outlook
Assessing market outlooks requires an understanding of economic conditions, property market trends, and regional dynamics.
But what Melbourne’s population is now, next year, in the next 10 years, 15 years, 20 years… No one knows and it has very little to do with the property forecast in 2024. We saw this during Covid where Australia’s population didn’t grow for two years and yet we saw the second largest property boom in 200 years. Focus on concrete data and fundamental factors rather than speculative forecasts or media narratives.
Your primary focus should be the decisions that have been made from all different sectors of the economy – federal, state, local, and how these decisions are going to impact the economy of a certain area or town.
For example, Victoria has an enormous amount of debt. It was already big before COVID and it went through the absolute roof coming out of COVID.
When you’ve got that lack of resources, you are depleted in a state’s ability for economic expansion. It’s economic expansion that creates jobs and builds infrastructure which directly affects the property markets.
The interconnectedness between a government’s fiscal policy and property market performance, shows the importance of monitoring even the smallest economic indicators in your property market analysis.
You also want a controlled housing supply pipeline. It’s not just about the current level of housing supply, but it’s the housing you can’t see because it hasn’t been built yet (but things have been approved for build in the future).
Focus your attention on the collective sum of all the fundamentals, knowing that there will be some things that will unfold and they’ll get negative attention at the time. Know the importance of focusing on fundamental market factors rather than succumbing to short-term fluctuations or external noise.
Help with Property Market Predictions in 2024
The best way to learn the property market forecast for 2024 is to seek professional guidance and stay on top of market indicators. Property investment involves substantial financial commitments and is influenced by various factors such as economic conditions, government policies, and property market trends. Without adequate knowledge and expertise in your corner, you may expose yourself to unnecessary risks and missed opportunities.
When it comes to property market predictions, knowledge is power. Professional guidance from experts, like Simon from Propertyology, who possess in-depth market knowledge and experience can provide invaluable insights and help you make informed decisions. By leveraging expert knowledge, you can position yourself strategically to capitalise on emerging opportunities.
Ready to take the next step in your property investment journey? Whether you’re a seasoned investor or exploring opportunities for the first time, our team of investment mortgage brokers is here to help.
Connect with us or the Propertyology experts to access personalised guidance, expert insights, and tailored investment strategies designed to align with your goals and objectives.
