Happy New Year!
As we kick off 2024, it’s the perfect time to reflect on the remarkable turnaround in the property market, especially in the wake of CoreLogic’s latest January home value index report.
In 2023, Australian home values experienced a significant surge, marking an impressive 8.1% increase nationally. This positive shift comes after a challenging 2022 when values dipped by 4.9%.
For Brisbane, the annual change in property values surged by 13.1%, and the median dwelling value finished the year at $787,217.
The question on everyone’s mind now is, what can we anticipate for the real estate landscape in the upcoming year?
What Can We Expect In 2024?
CoreLogic predicts that 2024 may pose challenges to the market as it faces a high-interest-rate environment, creating a weight on economic conditions. Factors such as rising unemployment, low consumer sentiment, and a lower household savings rate could test the demand for housing.
While there’s a possibility of a reduction in the cash rate in 2024, which might stimulate housing activity, other elements could impact housing demand, such as a normalisation in net overseas migration or a shift towards more shared housing options.
One potential offsetting factor to weaker demand is a supply restraint. The increase in construction costs has slowed down, and though construction costs are not decreasing, there remains a need for more labor and materials in residential construction. This could limit the addition of new dwellings to the market, thereby restricting supply.
How Housemark Can Help Keep You Informed
As part of our mission to redefine “Properly Managed”, Housemark is dedicated to providing landlords, tenants and stakeholders relevant and timely information relating to rental market conditions on an ongoing basis. Part of our mission to redefine “Properly Managed” is to ensure everyone in the Housemark ecosystem is kept aware of current market conditions and how those conditions apply to their particular situation.
As we navigate through 2024, it’s evident that the real estate landscape is evolving, presenting both hurdles and possibilities. Stay informed with Housemark on how these factors might shape South East Queensland’s property market in the coming months.
