We delve into the forces that have shaped the property market and reveal which of these trends will continue. Plus, we uncover three investment hotspots poised for growth next year.
As we near the conclusion of 2023, we provide a comprehensive overview of the investment property market, setting our sights on the promising prospects in 2024. Our research team have identified three high-growth areas to invest in next year, but before revealing these regions we look at some of the market fundamentals that have impacted us this year and forecast how they’ll play out in 2024.
There is no short-term fix to Australia’s housing crisis, so rental yields are likely to remain high for the short to medium term. According to the federal government’s Housing Accord, 1.2 million new homes need to be built per year from 1 July 2024 for the next 5 years to boost supply and keep pace with the growing demand.
Australia experienced a significant post-COVID increase in construction costs. These costs have recently begun to stabilise, which is good news for property investors looking to build.
Banks want to lend money and competition among lenders is likely to remain high both for new loan commitments and refinancing, especially as borrowers come off lower fixed rates into a higher interest-rate environment.
This is good news for property investors who are prepared to refinance to take advantage of lower rates. Even a slightly lower interest can make a big difference to your loan repayments.
1.2 million new homes need to be built per year from 1 July 2024 for the next 5 years to keep pace with the growing demand.
Our research team monitor the market for emerging growth areas and have hand-picked three regions to invest in 2024: Maitland, Logan and Warneroo in WA. These have all the fundamentals in place deliver strong returns.
Median price: $694,000
Rental yield: 5.3 – 5.7% with a DPN dual income home
Read more in Why Invest in the Hunter
Median price: $854,000
Rental yield: 5.5 – 5.8% with a DPN dual income home
Read more in Why Invest in Brisbane
Median region price: $576,000
Rental yield: 6.9 – 7.2% with a DPN dual income home
Read more in Why Invest in Perth
If you want to get into the property market or expand your portfolio, these regions should be on your radar. Whether you’re after rental yield, capital growth (or both), these regions will deliver.
Our expert team at DPN can help you with all aspects of property finance, investment and ongoing management. We also offer multi-rental income solutions like dual-income and duplex properties to supercharge your investment return.
Contact us today to find out more!
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