A Comprehensive Outlook at the 2024 Australian Property Market
In 2023, PWF has helped a brand-new cohort of clients lay a strong foundation for their future selves through smart property investments. We’ve helped young investors turn market challenges into opportunities. We’ve guided middle-aged couples who had no retirement plan a few years ago to early retirements.
And in 2024,
PWF will be doing it all again for our 20th year!
When it comes to property investment, the most powerful question we can ask ourselves as we step into 2024 is not ‘What should I do?’ but rather ‘What would my future self want me to do?’
Courageous Questions for 2024
- What potential tax advantages and incentives am I forfeiting by not investing in property?
- Without the 2nd income stream from property investment, how will my work-life balance look in the future?
- Am I underestimating my ability to successfully invest in and manage a property?
- How will not investing affect my ability to provide financial assistance or inheritance to my loved ones?
- If I look back in a few years, will I regret not taking this opportunity?
- If I succeed in this investment, what would that success look like?
- Can I take a small step towards this investment to test the waters?
Hear How Our CEO, Sally-Ann, Started Her Investment Journey
Understanding the property investment market isn’t just about figures and forecasts; it’s about recognising the underlying narratives that drive these numbers.
In metropolitan areas like Sydney and Melbourne, soaring property prices since COVID-19 have pushed many potential buyers to look for alternatives. These buyers are seeking value, not just in terms of price but also in lifestyle and community amenities.
This trend is evident in the rising interest in suburban and regional areas, where properties are more affordable yet offer a quality of living comparable to urban centres.
What are Property Investors Looking For in 2024?
For investors, this shift presents a unique opportunity to diversify their portfolios. Investing in up-and-coming areas can yield several benefits:
Higher Growth Potential
Emerging markets often offer higher growth potential. As these areas develop and become more popular, property values are likely to increase at a faster rate than in established markets.
Affordable Entry Points
Properties in these regions are generally more affordable, allowing investors to enter the market at a lower price point.
Rental Yield Optimisation
In 2024, property investors are focusing more on maximising rental yields. This involves targeting properties in high-demand rental areas and implementing smart build strategies.
Investments in these areas can be more stable in the long run, as they are less susceptible to the market volatility seen in major cities.
Focus on New Developments
A government objective to deliver 1.2 million homes by 2029 places a spotlight on new housing starts. Investors should monitor areas slated for development.
Investment in Sustainable Properties
Properties that align with these new sustainability standards are likely to be increasingly sought after, offering a new niche for property investors.
The Brisbane Olympics and Property Investment
The announcement of Brisbane as the host city for the 2032 Olympics has set the stage for a transformative era in property investment. This global event presents a unique opportunity for investors to capitalise on the growth and development it will bring to the region. The Olympics are expected to boost infrastructure, tourism, and the overall economy, positively impacting the property market.
As we approach 2024, it’s crucial for investors to position themselves to benefit from this once-in-a-lifetime event. From dual-occupancy to co-living properties, the potential for significant returns is substantial. At PWF, our team is equipped to guide you through this exciting phase, helping you identify and seize the best investment opportunities that the Olympics will bring.
Housing Development Reforms
2024 is poised to be a pivotal year for housing development reforms in Australia. There is a growing consensus towards adopting ‘Yes In My Back Yard’ (YIMBY) attitudes, contrasting the previously prevalent ‘Not In My Back Yard’ (NIMBY) mentality. This shift is a response to the urgent need for more housing, driven by population growth and affordability challenges.
These reforms are expected to facilitate a range of housing developments, including high-density projects, mixed-use developments, and urban infill projects. The goal is to create more diverse and inclusive communities with a mix of affordable and market-rate housing.
For property investors, these changes have several implications:
- Increased Development Opportunities: The move towards YIMBY attitudes opens up new opportunities for property development. Investors can participate in new projects, particularly in high-demand areas.
- Enhanced Property Values: The introduction of diverse housing options can lead to revitalisation of neighbourhoods, potentially enhancing the value of nearby properties.
- Portfolio Diversification: Investors can diversify their portfolios by investing in different types of housing developments, from residential to mixed-use projects.
- Social Impact Investing: These reforms offer opportunities for social impact investing, allowing investors to contribute to solving housing affordability issues while achieving financial returns.
In this period of transformation, understanding and adapting to the market’s new rhythms is crucial. Whether you’re eyeing investing in the capital cities or eyeing regional investments, our consultants can help you navigate these waters.
Reflect and Act: Use the holiday season to review your portfolio. Our consultants are here until December 22nd to help you align your investments with 2024’s prospects.
Knowledge is Power: Equip yourself with the latest in property investment. Our experts can provide resources and insights that will give you an edge.
Sustainability First: Explore eco-friendly investments with us before year-end to stay ahead of regulatory changes.
Networking and Learning: Use your holiday gatherings to gain insights and then bring your ideas to our consultants for expert advice.
Set Your Goals: Plan your 2024 investment strategy now. Let’s work together before December 22nd to map out your journey to success.