It’s no secret that property has boomed in most parts of Australia over the past few years, so you might be wondering if you’ve missed the property investment boat. But there’s no need to worry. Read on to find out what you need to know to invest in property confidently in 2024.

Australian property market trends and fundamentals

First, it’s important to understand six Australian property market trends and fundamentals.

1) Investors are returning to the market in droves

According to the latest lending figures compiled by the Australian Bureau of Statistics, January 2024 property investor loan approvals were up 18.5% over January 2023. This upward trend continued in the latest data release with February experiencing an increase of 21.5% over February 2023. The fact that investors are returning in such significant numbers is a good sign of lucrative opportunities in the 2024 Australian property market.

2) Interest rates appear to have peaked in the current cycle

With Australia’s inflation rate increasingly appearing to be coming under control, we should see an end to the trend of recent interest rate rises. Many analysts are tipping rates to fall later this year, which will increase investor borrowing power.

3) Australia currently has a housing crisis

Australia is currently in the middle of a housing crisis that shows no signs of easing for the foreseeable future. Put simply, the demand for properties exceeds supply, especially in the rental market. Vacancy rates in many areas are at record lows as a result, which is driving both property price and rental income increases.

4) Australia has a long-term population growth projection

Australia’s current population of 27 million is forecast to increase to 40 million over the next four decades. A long-term growing population will ensure an ongoing demand for properties, especially in highly desirable locations.

According to experts, between 240,000 and 280,000 new homes need to be built in Australia each year just to keep up with the growing demand.

5) Location, location, location

It’s an old cliché that the three most important factors in real estate are location, location and location, but it’s true. Good properties in good locations will always be in high demand. Good locations tend to have most (or all) of the following characteristics:

  • A good public perception.
  • Close to good schools.
  • Good shopping facilities.
  • Close to the CBD.
  • Good public transport facilities.
  • Plenty of things to do on the weekend (restaurants, cafes, entertainment venues, parks, etc.).
  • Recent or planned infrastructure investments.

6) You tend to get the best property investment results when you take a long-term approach (ideally, seven years or more).

Australia has a long-term track record of residential property price growth that has helped millions of Australians grow their wealth and secure their financial freedom. The stats over the past three decades show that the longer you hold your property, the more it tends to increase in value.

According to the latest figures from the Australian Taxation Office, more than 2 million Australians have at least one investment property.

Where are the best investment property opportunities in 2024?

Properties that are especially likely to be in high demand in Australia in 2024 and beyond include:

  • House and land packages in corridors where the population is projected to grow the fastest and that have significant infrastructure projects either underway or planned.
  • Exclusive apartments in prime CBD locations that are attractive to young professionals and other savvy tenants.
  • Boutique townhouses in growth suburbs, where more housing is needed. Where subdivisions will help gentrify the neighbourhood and meet the local council’s expansion plans.
  • High-quality, co-living housing in strategic locations to tap into the growing shared accommodation trend.
  • Dual income properties that can help you to generate a higher rental yield from two income streams on a single property.
  • NDIS housing that provides long-term, government-guaranteed income streams for investors in addition to important social benefits to the community.

The bottom line

If you understand the six Australian property market trends and fundamentals, then you should be able to confidently invest in blue-chip properties in strategic locations around Australia in 2024.

Looking for property investment advice?

Safore Group is a sophisticated property investment advisory service. Our professional and experienced team of “investineers” helps our clients to invest in high-net-return properties.  We empower our clients and pave the way for creating generational wealth.

Whether you’re an experienced property investor looking for your next lucrative opportunity or you’re looking to join the millions of Australians who have built their long-term wealth by strategically investing in blue-chip properties, contact me, Michael Safar, today for an obligation-free chat!

I’d be happy to provide you with advice and answer any questions you have.