As we get into the full swing of the new year in real estate, we’re finding investors are left pondering whether this year will mark a much-anticipated tipping point in the market. Here, we explore the nuances of the market as we dive into the concerns currently preoccupying property investors in the ever-evolving real estate landscape.
The impact of the changing property landscape
Economic uncertainty and continuous shifts in interest rates, government interventions and regulatory changes are creating an element of unpredictability for investors. This uncertainty could pose challenges in accurately forecasting the impact of these shifts, which could shape investment decisions.
“Investors should be agile when navigating the complexities of investing in property,” suggests Brad Wearne from Meridian Australia.
So, what does this mean in lay terms? “In essence, success in 2024 will depend on how quickly you can adjust to changing market conditions and understand the effects of economic policies on the real estate market,” Brad says.
Supply vs demand in 2024
“The delicate dance between supply and demand we’re currently seeing is starting to become a primary concern for property investors.” Brad says.
“As demand for properties continues to soar, finding good quality, available properties becomes difficult due to limited supply.”
This is particularly evident in metropolitan areas where the competition for desirable properties is reaching fever pitch. Investors must meticulously evaluate the supply and demand dynamics in their chosen markets, anticipate trends and identify high-potential locations. Being able to obtain a property that will keep its value well despite the ever-changing market conditions is the perfect combination, but it’s proving hard to find.
Diversifying the portfolio
Instead of putting all their eggs in one basket, investors are actively spreading their investments to mitigate any unforeseen risks.
“This isn't just about playing it safe; it's a smart move to keep your investments strong and risk-averse if the market throws unexpected challenges your way,” Brad explains, “In 2024, being smart about diversifying your investments is key.”
Sustainability is no longer a buzzword
Once a secondary consideration, sustainability now takes centre stage for property investors navigating the property market. Prioritising investments in eco-friendly properties with green certifications is not just trendy but a strategic move. Assessing a property's long-term resilience against its environmental risks is crucial in the investment decision-making process. Brad believes there’s no doubt that sustainability is now spearheading the future of property investment.
Is 2024 the tipping point for the Australian property market?
With a variety of challenges comes an abundance of opportunity. By approaching real estate with foresight, adaptability and a commitment to sustainability, the coming year holds plenty of promise for savvy property investors.
Contact our team of experts to learn more about strategic insights, adaptive approaches, and flourishing investments in the Australian real estate market!