Nobody would believe that the resale numbers of Australian Property Market in the first quarter of 2024.As per CoreLogic Pain and Gain Report, sales of Australian property have reached a record level since 2010.According to the report 94.3% property sale profited in the first quarter of 2024.This spike in profitable sales shows real estate market’s strength and offer Home Buyers a golden opportunity.
If you compare Houses Vs. Units, houses have confirmed to be a more lucrative investment than units. House resales (97.1%) making a gain against Units (89. 0%).Day to day life style changes and remotely working opportunities have shown growing appeal to regional areas than capital cities. The report indicates 95.6% of regional property sales resulting in profit in opposite to 93.5% in capital cities.
The report also showed a robust market response to rising interest rates and house values, as decline in loss-making sales for properties held for 2-4 years.
Long term estimates predict strong development in Major Australian cities in next 5-10 years. By 2030, Median House price rise to nearly $1.6 Million. According to Micheal Yardney of Property Update, rising demand for Luxury Residences expect the premium market to out-perform.
More property owners are making a profit on sale, CoreLogic’s head of research Eliza Owen said: “This increase in the profitability rate across the Australian housing market helps to shore up financial stability for many property owners at a time when higher mortgage costs are starting to take their toll on household budgets”.
AMP’s chief economist Shane Oliver says; “The Australian property market remains strong. It’s surprised me with its strength. The main factor I think has just been the sheer shortage of property relative to the massive population growth that we’ve seen over the last 18 months.”
A Golden Chance for Homebuyers
CoreLogic data shows that Australian real estate investing is profitable. The typical gain per property resale was $265,000, and gains were $28.5 billion in the March quarter. Buyers should
enter the market now since profitability has not been this high in over a decade.
Property ownership has benefits beyond financial gains. These compelling reasons make house ownership a good choice:
- Financial security throughout time
- Safety and comfort
- Personal liberty
- Community and belonging
Between now and 2030, some economists project a 40–50% increase in Australian home values. This is not surprising, as it is commonly believed that well-located capital city properties have an average annual growth rate of roughly 7% over the long term (prices have increased 6.8% annually over the last 30 years), meaning that well-located properties should, on average, double in value every 7–10 years. Accordingly, the median home price in Australia in 2030 would be approximately $1.1 million. Do contact Buyers Team as your buyer’s agent in the competitive and perplexing Melbourne real estate market. To see what we can offer, pls. visit https://buyersteam.au/
Sources
https://www.corelogic.com.au/news-research/news/2024/profitability-reigns-as-property-gains-hit-14-year-high
https://www.amp.com.au/insights-hub/blog/investing
https://propertyupdate.com.au/predicted-house-prices-for-australia-in-2030/
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