Topics covered today:
In this episode Pete and Chris discussed their 2024 highlights
Some of the major trends we observed in the Aussie property market in 2024 included: Perth and Adelaide have boomed, and Brisbane listings were so low all year.
How did interest rate movements impact the market throughout the year? Not as much as we thought. It was a complex web of trends, overall, and not as simple as people thought at the beginning of the year.
1. What Pete and Chris learned in 2024, and some challenges faced by the property market
- A key lesson for us – don’t get too stuck on Level 1 thinking. It’s a complicated market sometimes
- The most significant challenges the property market faced last year: Construction costs were very high, and developer insolvencies hit 3,000. Housing supply struggled all year.
2. 2025 outlook and insights from Pete and Chris
- Looking forward to 2025, our main predictions for the Australian property market: Slower price growth, but solid performance, overall.
- Melbourne is set to rebound due to relative affordability versus other capital cities.
- How we see the interest rate environment evolving, and how this will impact the market: Interest rates to fall to around 3.5%, APRA change to ease lending assessment buffers, and more bank competition for customers. This should boost buyer activity into an undersupplied market.
- Particular areas or regions in Australia that might offer the best investment opportunities in 2025: Melbourne, Newcastle, Brisbane, Central Coast, and Sunshine Coast.
- Key trends to shape 2025: Election year could see some changes to population policy, and property market policy. Superannuation for housing (Coalition) and Build to Rent (Labor). Slower population growth overall, as visa issuance for international students slows down.
3. Our advice for homebuyers and investors in 2025
- Risks we believe homebuyers and investors should be cautious of in 2025: Construction and off the plan risks. Keep a buffer in case interest rates don’t fall.
4. Closing reflections from Pete and Chris
- Summing up in 2024: Resilience! An interesting year of lessons. Intergenerational wealth and a struggle for developers. A complex market.
Other advice for listeners as they plan their property investment strategies for the coming year:
Get a property plan done!
