Australian Property Market Trends 2024: Houses vs Units & Investment Insights

G'day and welcome to the latest pulse check on the Australian property market as of the week ending 01 March '24.

In a landscape where change is the only constant, we're seeing shifts that could redefine the way we think about property ownership and investment down under.

From the widening gap between houses and units to the rallying call for more building incentives, and the surprising resilience of regional markets—there's a lot to unpack.

Whether you're a first-home buyer, a seasoned investor, or somewhere in between, join us as we delve into these trends, armed with the latest data and insights that could very well shape your next big move in the property world.

The Widening Gap Between Houses and Units

In the ever-evolving saga of the Australian property market, a significant trend has emerged, capturing the attention of buyers and investors alike. Analysis by CoreLogic has unveiled a startling 45% increase in the price gap between houses and units since the onset of the pandemic. This divergence is not just a statistic; it's reshaping how Australians think about home ownership and investment.

Tim Lawless, CoreLogic's Research Director, points to rising land values and a scarcity of houses on the market as the primary drivers of this trend. The demand for houses has surged, pushing prices up and widening the gap with unit prices. This shift is profound, with Sydney experiencing the largest disparity at 68.4%, followed closely by Canberra and Adelaide.

But what does this mean for the average Australian?

For starters, the dream of owning a spacious home is becoming increasingly challenging, pushing potential buyers towards the unit market.

Lawless predicts this trend will only continue, making units a hot commodity in the coming years.

The Urgent Call for Building Incentives

The Property Council of Australia (PCA) has sounded the alarm on the need for increased building incentives. With the housing crisis deepening, the PCA is urging the Federal government to double the existing $3.5 billion incentives. This bold move aims to encourage states and territories to exceed their housing targets, addressing the critical shortage of quality homes.

Mike Zorbas, PCA's Chief Executive, emphasizes the necessity of building homes close to jobs, educational opportunities, and public transport.

This strategy not only meets the diverse needs of Australians but also contributes to healthier, happier communities.

Suburbs Defying the Odds: Price Growth Stars

Amid talks of a cooling market, PropTrack's latest analysis tells a different story. 87 suburbs across Australia have seen remarkable price growth, outperforming their neighbours. This growth isn't confined to the usual hotspots; it's spread across Perth, Adelaide, and southeast Queensland, highlighting:

• Affordable suburbs are leading the charge.
• Top performers include Woodridge, Runcorn, and Caboolture South in Brisbane.

This trend underscores a significant shift towards affordability, with more Australians seeking value in less traditional locales.

Investor's Paradise: Where to Plant Your Money

For investors, the landscape is ripe with opportunity. Suburbtrends' analysis predicts further rent rises, particularly in suburbs with strong unit markets. The report identifies top investment suburbs offering robust rent growth, such as Goodwood and Millswood in South Australia and Mosman Park in Western Australia. These areas represent not just a safe bet but a potentially lucrative one for savvy investors.

The Rise of Regional Markets

In a surprising twist, regional markets have started to outshine their metropolitan counterparts. With a 1.2% increase in home values compared to the capital cities' 1%, the allure of regional living is stronger than ever. High-interest rates have dampened city growth, but regions remain resilient, offering a blend of lifestyle and investment appeal.

This shift is significant, reflecting a broader trend of Australians seeking quality of life away from the urban hustle. The Australian Regional Movers Index further supports this, showing a higher movement from cities to regions.

As we navigate this complex landscape, it's clear that the Australian property market is in a state of flux. The emotional side of this journey cannot be understated; it's about finding a place to call home, investing in our futures, and adapting to the changing tides of the market.

For those feeling overwhelmed by these shifts, you're not alone. We are here to help you make sense of it all and find your footing in this new terrain. Whether you're looking to buy your first home, invest in a unit, or explore the potential of regional markets, there's a strategy for everyone.

Rupali Rastogi, your Independent Buyer's Agent

If you're ready to take the next step in your property journey, I invite you to book a time on Rasti’s calendar for a one-on-one conversation and discuss your personal circumstances and how property investing can work for you. Visit https://getrare.com.au/ready to get started.

And for those looking to deepen their understanding, join us at our educational workshops. Discover how you can achieve financial freedom through property investing. Sign up here: https://getrare.com.au/workshop.