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How to Align Your Property Investments with Market Trends in 2024

Can you believe Brisbane's median dwelling value has soared by over 50% since 2020?

Since the pandemic hit, it’s been a roller coaster ride for property markets across Australia. But not all cities have ridden the same highs and lows. Melbourne’s growth, by comparison, has been more subdued. It’s not about lagging behind; it’s about different market trends and dynamics at play. 

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Factors Contributing to Brisbane's Growth

Remote Work and Population Growth

The transition to remote work has had a big impact on property markets, with Brisbane benefiting from increased demand as professionals seek better living conditions and affordability.  

Supply Constraints

Despite the growing demand, Brisbane, like many Australian cities, has faced supply constraints. Challenges in the construction sector, partly due to pandemic-induced disruptions, have led to a supply-demand imbalance, contributing to the rise in dwelling values.

Investment and Rental Trends

Investor finance in Brisbane, as a portion of overall lending, has remained robust, reflecting continued investor confidence in the city’s property market. Rental yields in Brisbane have also shown resilience, with rent values increasing steadily. This trend suggests a healthy rental market, likely buoyed by the population influx and limited housing supply.

First Home Buyer Activity

The value of first home buyer finance has seen an uptick, indicating a growing segment of new entrants in the property market. This increase aligns with the broader trend of housing affordability challenges, prompting first home buyers to seek opportunities in markets like Brisbane, where the balance between affordability and lifestyle remains attractive. 

Interest Rates and Mortgage Trends

The property market is also reacting to the broader economic environment, particularly interest rates. While there has been a stabilisation in interest rates, the cost of borrowing remains a crucial factor influencing buyer and investor decisions. 

As property trends shift faster than ever before and new property hotspots emerge are your investments aligned for success in 2024?

Brisbane and Melbourne - two cities, two vastly different housing landscapes.

In Brisbane, houses reign supreme. The city’s housing stock is predominantly detached homes, the Aussie dream. Melbourne, on the other hand, is a tale of towers. Apartments and units dot its skyline, a higher proportion than Brisbane. What does this mean for median dwelling values? Simple.  

Houses typically fetch a higher price than units. So, even though Melbourne’s median prices for houses and units outstrip Brisbane’s, the overall median dwelling value in Brisbane has nudged ahead. 

Speaking of the Aussie dream, that yearning for more space and a more relaxed lifestyle has been the driver of interstate migration to Queensland and Western Australia.

Interest Rates and Mortgage Trends

The property market in 2024 is going to be significantly influenced by the trajectory of interest rates. After a period of consistent increases, the Reserve Bank’s stance seems to be softening.  

With inflation showing signs of deceleration, there’s growing speculation that the cycle of rate hikes might give way to cuts later in the year. 

This potential reprieve in interest rates could be a game-changer for the property market.  

The high interest rates of the recent past have placed considerable pressure on mortgage holders, impacting affordability and dampening market activity. A reduction in rates could reinvigorate the market by enhancing affordability and encouraging borrowing. 

Mortgage lending trends are also a crucial factor for investors to consider. With the possibility of interest rate cuts, we might see an uptick in mortgage lending. This could result in increased property purchasing activity, impacting both demand and prices.  

However, investors should note that rate reductions are not expected to be as rapid or as substantial as the previous increases. This creates a scenario where the market could experience gradual changes rather than sudden spikes. 

Top Tips for Property Investors in 2024

Investors should focus on areas experiencing population growth, infrastructural developments, or shifts in housing demand due to remote work trends.

Look beyond the usual hotspots. Regional areas or suburbs with growth potential can offer good value. Different property types can balance your portfolio against market volatility.

Investing in properties with eco-friendly features can attract a growing demographic of environmentally conscious tenants and buyers, ensuring your investments are future-proof.

Stay informed about government policies and incentives that can impact the property market. From tax concessions to development incentives, these can be critical in shaping your investment decisions.

Leverage the expertise at PWF to transform your property portfolio. Our team provides in-depth market analysis and bespoke investment strategies that respond dynamically to the rapidly evolving property market of 2024.

We’re dedicated to helping you make the most of 2024’s opportunities.

Our team of property investment experts is equipped with the insights, tools, and experience to guide you through the complexities of the 2024 property market. 

Whether you’re looking to expand your portfolio, enter new markets, or simply want to understand how to align your current investments with emerging trends, we’re here to help.