In this article, we will be discussing the real estate and property market in Australia in 2024, focusing on the biggest companies in the industry. The national median home value in Australia reached a record high of $774,000 in April, showing a 6.6% increase since 2023. However, soaring interest rates have reduced the purchasing power of Australians by almost 35% to 40%. Despite expectations of interest rate cuts earlier in the year, due to persistent inflation, no cuts are expected for 2024.
Home buyers in Australia are still concerned about high interest rates, but a fear of missing out is prevalent among those who have been waiting to enter the market. More certainty on interest rates will determine how these buyers will react. The Australian property price growth is expected to slow down as the Reserve Bank has held the cash rate at a 12-year high of 4.35%. With stronger-than-expected inflation, the optimism for an early interest rate cut has diminished, and slower price growth is predicted in the coming months.
The number of homes scheduled for auction in Australia has increased compared to the previous year, with Victoria and New South Wales leading the way. However, South Australia and Western Australia have not seen the same housing volumes, leading to high prices in those regions. House prices have increased by 20% in Perth and 14% in Adelaide year-over-year, highlighting issues of housing affordability and shortage in the Australian real estate market.
Looking ahead to 2024, the Australian government aims to build 1.2 million new homes in the next five years starting from July 2024. The government plans to invest over $11 billion into housing, including funding for crisis accommodation, infrastructure, and social housing. Additionally, measures will be taken to address the shortage of skilled labor in the housing sector.
Some of the key players in the Australian real estate market include Goodman Group, Vicinity Centres, and Stockland. Goodman Group, the largest developer of industrial property, recently invested in a new Amazon fulfillment center in Western Sydney. Vicinity Centres, a leading retail property group, launched a national marketing campaign to support retailers. Stockland, a major residential developer, announced the launch of a new residential precinct to meet housing demand.
In conclusion, the Australian real estate market faces challenges of housing affordability and shortage, alongside uncertainty surrounding interest rates. The government is taking steps to address these issues, and key players in the industry continue to make significant investments and developments.