Key takeaways

Currently Australia’s housing is so undersupplied that I’ve rarely encountered a supply-demand inflection point like this that requires such attention. And it’s only going to get worse.

Sure there are unknowns and risks ahead, but there are also five certainties for our housing markets:
1. Inflation will stick around a little longer than the RBA would like
2. Interest rates will eventually fall
3. The scarcity of dwellings for both purchase and rent will not go away any time soon.
4. Rents will keep rising
5. Astoundingly good demographics and strong population growth will keep fuelling demand for housing.

This creates a window of opportunity before falling interest rates create a property market reset.

Inflation has now peaked and it’s likely so have interest rates, and in due course consumer confidence will return and the markets will continue their upward trajectory.

Here are some trends to watch for in 2024:-
1. The recovery phase of the property market cycle will continue.
2. Interest rate fall eventually but now this may not happen till much later in the year or early next year.
3. Our property markets will become more fragmented.
4. Strong migration will continue to underpin our housing markets.
5. Rents will keep rising strongly.
6. Strategic investors will keep investing in the property market.
7. Living in the right neighbourhood will be more important than ever.
8. Our economy will remain robust, and employment will keep growing.