8 Factors that will further drive property growth in 2024 and Why Property Investors Should Feel Positive

An Imbalance of supply & demand – strong immigration levels are creating strong housing demand, but there is very low construction of new housing which means there is inadequate supply to meet demand. To further exacerbate this, the cost of building has increased so much it becomes non-viable for developers to continue building new homes.

A strong economy – low unemployment rates, federal and state government spending initiatives, infrastructure projects, will all help continue driving economic growth.

Interest Rate security – we have experienced over 150% increase in interest rates over the last 2 years, so the likelihood of this continuing is extremely low as the era of cheap debt has come to an end. If the numbers work today, then they will only improve as inflation control is gained and top economists are discussing rate decreases

Low vacancy rates, increasing rents – this combination of factors lends itself to improved cash flow going forward with the lack of supply. Whatever measures are implemented to ease the rental crisis, it wont happen over night and there will be years of the current imbalance causing low vacancy rates and increasing rents

Low stock levels of properties for sale – the fundamental demand vs supply imbalance won’t be changing any time soon due to the lack of building and development due to high construction prices, so while this market exists, price growth and rental increases will continue to exist. So if you have bought in the right location, you will continue to reap these benefits.

Increasing consumer confidence – now that inflation is under control, interest rates have peaked, banks are easing up on their lending policies, the consumer confidence is back in full swing as sentiment grows. This will bring more buyers into the market in 2024, so right now there is a window of opportunity for those who are ready to buy to secure real estate before the crowd.

International demand for Australian property – foreign investors are back in the market after the pandemic and are helping to underpin house pricey.

Desirability of SEQ – investors are wanting to buy in strong economies with high desirability factors such as lifestyle that SEQ has on offer. Couple this with the upcoming 2032 Brisbane Olympic Games, the job opportunities, development, and infrastructure projects are only going to keep people wanting to move here and remain here.