Property market forecast for 2024. In this market insight, we take the opportunity to share our perspective on what the year ahead will look like in the Melbourne/Victorian residential property market.
What happened in 2023?
The property market in 2023 experienced everything! Many areas exceeded expectations, while increasing interest rates hindered home owners like they haven’t experienced before.
The rental crises was the centre of attention with little property supply to house the increasing population. Rental prices increased sharply, rewarding property investors in servicing higher loan repayments while tenancy demand continues to drive the need for more properties to come to the market.
Outer suburbs witnessed the most property supply, while apartment and townhouse developments supply was well below averages.
As the year ended, immigration and completed infrastructure spiked property demand with many buyers and investors on the cusp to get into the property market.
The property market forecast for 2024
At Crest Property Investments, we have the privilege to oversee market trends, buyer activity and access various research tools to review both economic and property data.
As the state and federal government work towards increasing property supply, Melbourne is expected to outperform the country in the months to come. In response to the covid lockdowns, Melbourne was hit the hardest with some of the longest lockdowns in the world. As Melbourne returns to its beautiful self, Melbourne has been slower to see property prices rise in 2023. This year, they will play catch up.
Continuing demand for rental properties is set to keep rental returns strong in 2024. The rental market will continue to demonstrate good stability providing a favourable environment for property owners and investors.
In 2024, we enter a new year where we anticipate an increased activity from property investors as opposed to first home buyers or owner occupiers. Investors can look forward to higher yields acting as a reset for the market, providing an attractive entry point and the prospect of higher returns. This presents a good opportunity to create diversified investment portfolios.
It is further anticipated interest rate will be reduced in late 2024 or early 2025, enhancing consumer sentiment and increased housing activity. This potential relief offers opportunities for both investors and owner occupiers.
What to do next?
At Crest Property Investments, we specialise in sourcing brand new and off the plan properties for buyers. We also offer a free service to do this. If this is of interest we would welcome the opportunity to help with location, property type and much more.
Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
January 2024
