Property Weekly Pulse with Rasti:
Week Ending 19th Jan ’24
Happy New Year, mates! 🎉 As we usher in 2024 with gusto, it’s time for our very first market update of the year. This isn’t just any update; it’s a sneak peek into the vibrant and evolving landscape of the Australian property market. Brimming with fresh stats and trends that are shaping our real estate scene, this update is your gateway to understanding the market pulse.
So, get comfy, grab a cuppa, and join me, Rasti Vaibhav, as we unravel the exciting prospects and opportunities waiting for us in Aussie real estate this year. Let’s dive in!
Investors Are Flocking Back
The Australian property market is witnessing a significant comeback from investors. Recent data from the Australian Bureau of Statistics indicates a robust 18% increase in new investor loans over the past year, culminating in November. This surge isn’t just a number; it’s a testament to the growing confidence investors are placing in the Aussie market.
- 1.9% increase in investment loans in November
- 3.5% growth in first home buyer loans
Dr. Mish Tan, ABS head of finance and statistics, highlights that this increase is most pronounced in NSW, Victoria, and Queensland, with NSW leading the pack in both owner-occupier and investor loans. The emotional side of this data is the hope and confidence it instills in potential investors and first home buyers alike.
Surge in Apartment Approvals
The apartment market is set for a significant upswing in 2024.
- Apartment approvals rose by 6.7% in November
- Total number of dwellings approved rose by 1.6% to 14,529 in November
Shane Garrett from Master Builders Australia and Tim Reardon from HIA both see this as a positive shift that promises to ease rental market pressures and meet the growing housing demand
Renovation Boom Predicted for 2024
2024 is shaping up to be the year of renovations. Thanks to stabilising building costs, renovating homes has become an attractive proposition for many Australians.
- Stable material costs and reduced shipping costs
- Ongoing growth in house prices
HIA’s chief economist, Tim Reardon, believes that as house prices have increased substantially over the last four years, renovations are becoming an increasingly cost-effective option.
Continued Growth in the Rental Market
For landlords, the news is positive. Rental growth, while starting to moderate, is still on an upward trajectory.
- 1.8% increase in dwelling rentals nationally
- Median asking rent now $580 per week
Angus Moore from PropTrack suggests that due to record low vacancy rates, rents are likely to continue rising, signalling a robust rental market for the foreseeable future.
What Lies Ahead in 2024
As we navigate through 2024, it’s crucial to keep an eye on the evolving market dynamics:
- Property prices are expected to rise, albeit at a slower pace due to increasing interest rates.
- Eleanor Creagh and Cameron Kusher from PropTrack emphasises the strong demand for housing, predicting further price gains despite the challenges.
Rasti Vaibhav, The Architect of Property Wealth
Navigating the property market’s complexities can be daunting, but fear not – I’m here to guide you through. Keen on understanding how these developments impact your property journey? Book a one-on-one consultation with me at https://getrare.com.au/ready or join our upcoming educational Masterclass to gain deeper insights at https://getrare.com.au/financial-freedom. Let’s unlock the potential of your property aspirations together!