Australian house price growth exceeded the expectations of many in 2023 and some analysts are predicting the same will happen again in 2024, particularly in the top end of the market.
John McGrath, of McGrath Ltd, says there are plenty of cashed-up buyers with more than $5 million to spend in the current market.
Because they are buying without mortgages, McGrath says the current rising interest rate environment won’t affect them.
“They’re buying with cash; there is an enormous amount of wealth, and I have no doubt that part of the market will stay in demand,” he says. “That end of the market is in very good shape.”
Barrenjoey chief economist, Jo Masters, believes many of the big spenders are parents or grandparents looking to transfer some of their wealth while they are still alive.
She says there are also more people pooling their resources to buy together meaning each participant is not being overstretched.
This combined with high migration numbers and continuing limited supply are expected to continue to drive up property prices through 2024.