2024 property market outlook for investors - Part 2

We delve into the forces that have shaped the property market and reveal which of these trends will continue. Plus, we uncover three investment hotspots poised for growth next year.

As we near the conclusion of 2023, we provide a comprehensive overview of the investment property market, setting our sights on the promising prospects in 2024. Our research team have identified three high-growth areas to invest in next year, but before revealing these regions we look at some of the market fundamentals that have impacted us this year and forecast how they’ll play out in 2024.
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Where are we headed?
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Rental yields to remain high as vacancy rates stay low

There is no short-term fix to Australia’s housing crisis, so rental yields are likely to remain high for the short to medium term. According to the federal government’s Housing Accord, 1.2 million new homes need to be built per year from 1 July 2024 for the next 5 years to boost supply and keep pace with the growing demand.

Construction costs stabilising

Australia experienced a significant post-COVID increase in construction costs. These costs have recently begun to stabilise, which is good news for property investors looking to build.
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Continuing competition between lenders

Banks want to lend money and competition among lenders is likely to remain high both for new loan commitments and refinancing, especially as borrowers come off lower fixed rates into a higher interest-rate environment.

This is good news for property investors who are prepared to refinance to take advantage of lower rates. Even a slightly lower interest can make a big difference to your loan repayments.

1.2 million new homes need to be built per year from 1 July 2024 for the next 5 years to keep pace with the growing demand.

Where to invest in property in 2024

Our research team monitor the market for emerging growth areas and have hand-picked three regions to invest in 2024: Maitland, Logan and Warneroo in WA. These have all the fundamentals in place deliver strong returns.

City of Maitland,
New South Wales

Median price: $694,000
Rental yield: 5.3 – 5.7% with a DPN dual income home

Population of 786,000 making the Hunter one of the largest regional areas in Australia
Maitland sits between the coal mining of the Upper Hunter, and the ports and City of Newcastle
$835M Maitland Hospital & John Hunter Innovation Precinct
$700M Singleton bypass
$450M Newcastle Inner City bypass
$240M Newcastle Airport expansion

City of Logan,
Queensland

Median price: $854,000
Rental yield: 5.5 – 5.8% with a DPN dual income home

SEQ has a population of over 4M, with a forecast of 5.3M by 2041.
Logan is situated between the major cities of Brisbane, Gold Coast and Ipswich.
Faster rail services for Brisbane, including Logan as part of the Olympic upgrade.

City of Wanneroo,
Western Australia

Median region price: $576,000
Rental yield: 6.9 – 7.2% with a DPN dual income home

Higher than average population increase for WA compared with national average.
Perth’s median house price is $584,000, affordable compared with Sydney at $1,250,000.
Yanchep rail extension project connecting new northern suburbs to metro line.
$232M northwest freeway extension recently opened.

Find your 2024 opportunity

Our expert team at DPN can help you with all aspects of property finance, investment and ongoing management. We also offer multi-rental income solutions like dual-income and duplex properties to supercharge your investment return.

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_{Other sources}_{RBA Rate Tracker}_{NAB webinar, October 2023
ID Webinar, October 2023
CoreLogicHedonic Home Value Index, November 2023}

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2024 property market outlook for investors - Part 2

Where are we headed? ‍Rental yields to remain high as vacancy rates stay low

Construction costs stabilising

Continuing competition between lenders

Where to invest in property in 2024

City of Maitland, New South Wales

City of Logan, Queensland

City of Wanneroo, Western Australia