2024 prestige property outlook

Rising median house values

We anticipate a considerable rise in median house values, a direction largely attributed to the sustained interest from international buyers and investors. This global attention to Melbourne property is an indicator of the market's appeal, especially in metropolitan areas and sought-after suburbs. The range of areas we serve continues to draw buyers from all corners of the globe, and the influx of foreign capital is expected to benefit existing homeowners and property investors alike.

Economy and Interest Rates

According to the Organisation for Economic Co-operation and Development (OECD)*, the Australian economy is projected to grow by 1.4% in 2024. In line with these projections, the big four banks in Australia have diverse expectations for 2024 interest rates, with some anticipating a modest decrease later in the year. A potential reduction in interest rates could make borrowing more attractive, potentially invigorating the high-end property market with increased activity.

Premium prices for turnkey properties and education-centric locations

Turnkey homes, with their appeal of convenience and immediate liveability, will continue to command top market prices in 2024. Additionally, renovated residences in prestigious school zones are expected to attract premium investments, reflecting the significant value families place on access to top-tier education. There is a readiness amongst buyers to pay a premium for the combined benefits of ready-to-move-in properties and desirable educational opportunities in these sought-after areas.

Rise of the luxury apartment market

The luxury apartment market will see an increase in 2024, particularly with the rise of international and interstate buyers expected to breathe new life into this sector. Off-the-plan luxury residences, especially those featuring cutting-edge amenities and sustainable living options, are increasingly appealing to discerning buyers. These purchasers value the combination of contemporary, low-maintenance lifestyles and the potential for strong future resale value, positioning luxury apartments as highly attractive investment opportunities.

Boost in the rental market

The rental market is yet another segment set for substantial growth in 2024. With increasing investor confidence, there's potential for an expansion of the rental inventory. This could provide renters with more choices and potentially alleviate rental price pressures in some areas. Investors are increasingly recognising the value of the rental market, given the potential for steady income streams and long-term capital growth.

New tax landscape

The imminent tax revisions scheduled for July 2024 are also worth a mention. These impending changes are expected to strengthen buyer confidence, enhancing their purchasing power in the high-end property market.

For homeowners contemplating their next move in the market, the message is clear: now is an opportune time to position your property for success. Whether it's making strategic upgrades or understanding the needs of the evolving buyer profile, preparing your property for the market is key to capitalising on the opportunities that 2024 is set to offer.

With the Melbourne and Peninsula property landscapes gearing up for a year of growth and opportunity, it is an opportune time for buyers, sellers, and investors alike to capitalise on current market conditions. As always, we remain committed to guiding our clientele through every step of their real estate journey, ensuring success in every transaction and partnership.

*Source: https://www.oecd.org/australia/