Five key trends will drive the Australian property market in 2024, according to Domain chief of research and economics, Dr Nicola Powell.
She says a cash (interest) rate cut and population growth will add to demand, affordability will become more important, YIMBYs will replace NIMBYs, and rental markets will finally reach a tipping point.
Powell says a rate cut will see more people enter the market as their borrowing capacity improves, that coupled with continuing population growth will push prices higher in 2024.
While she believes net overseas migration has peaked Powell says it will continue to influence the property market for some time yet.
“Domain analysis found population growth has a cumulative longer-term effect on house prices and, therefore, will continue to play a driving role in our housing markets into 2024 and beyond,” she says.
In a search for affordability buyers in 2024 are set to explore sister (or neighbouring) suburbs which they would have previously overlooked.
This Powell says allows buyers to still access the amenity in their more desired suburb but not the high buy in price.
The continuing housing crisis means attitudes are changing toward suburban development according to Powell.
While previously it had been NIMBY “not in my back yard”, now it was YIMBY “yes in my backyard”, she says.
After two years of solid rental increases, Powell also believes rental growth will hit a peak in 2024 and slow.