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Riding the Wave: We break down the driving forces behind the property market surge in Australia

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Riding the Wave: We break down the driving forces behind the property market surge in Australia

Back in November of last year, we shared our data-driven prediction that property prices in Australia would surge. Now, it’s no secret that our property market has experienced a remarkable rebound, captivating the attention of investors nationwide.

PropHero recently hosted a webinar where our Co-Founder, Mickael Roger, did a deep dive into the driving factors behind this surge and his predictions for the market’s future. Here’s a summary of his valuable insights and expert opinion on how you can make the most of this crucial time to invest.

Over the past two months, property prices, especially in major capital cities, have shown an impressive upward trajectory. This surge serves as a testament to the resilience of the Australian property market. Despite challenges and uncertainties, the market has displayed its strength, and its potential for growth and profitability has excited investors around the country.

One of the key driving forces behind the surge in property prices is the significant demand for properties, which has outpaced the current supply levels. Vacancies in many capital cities have reached all-time lows, intensifying the imbalance between supply and demand and propelling prices even higher. This imbalance has created a scarcity of houses and apartments across various cities in the country and has even led to hundreds of people queuing up to inspect an apartment in Bondi. Adding to this shortage, the slowdown in new building projects and a rebound in immigration have further contributed to the supply-demand imbalance.

Looking ahead, Mickael predicts two potential developments in the next 6 to 18 months. First, we may witness increased regulatory intervention aimed at stimulating new building projects and regulating rents to ensure the sustainable growth of the market. Second, a potential decrease in interest rates could usher in a new cycle, presenting fresh opportunities for investors to capitalise on.

And while the Australian property market is currently thriving, it is crucial to stay vigilant and keep an eye on potential regulatory changes that could impact market dynamics in the future.

Want to make the most out of the market while we’re still in the early stages of an upswing? Click here to book a free investment strategy session.

 

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