Monday, 4th December, 2023

Where Is The Property Market Going In 2024?

With the year coming to an end, investors are beginning to look at 2024.

More specifically, where the property market will go in 2024.

Below are forecasts for the increase in property prices in 2024.

At first glance, you may have noticed the variation between estimates.

Westpac has the most aggressive prediction, believing that house prices could increase by 7.7% in 2024.

On the other end, ASB believes house prices could increase by 2.5% in 2024.

The banks have access to the same information & data. So, why the variations in estimates?

Westpac chief economist Kelly Eckhold said the biggest driver in their predictions was net migration.

Over the last year, our population has grown by 2%.

It will take around 12 months before the high immigration to impact property prices.

Westpac believes the migration on its own could increase house prices by 15% - 20%.

However, the property market will be facing headwinds in 2024.

Banks will still have high-interest rates & strict lending criteria.

In addition to that, unemployment is also expected to increase.

These factors all work against the property market.

That’s how Westpac arrived at a 7.7% increase.

That’s A Wrap

Every investor in the real estate market or looking to enter must have access to a rental property cashflow calculator.

Why?

• It evaluates the profitability of a rental property

• Gives insight into the return on investment

• Allows you to make informed decisions about buying, selling, or holding a property.

• Assists in creating accurate budgets.

• Helps track the financial performance of rental properties.

Talk to you tomorrow,

Alvin Zhong