Residents and owners of holiday homes across regional Australia should be ready for a steady but unspectacular 2024, according to the leading industry researcher, CoreLogic.
In its final quarterly report of the year, the company said that regional properties were “lagging” their metro counterparts in value growth and rise in rental incomes.
The recent cash rate rise to 4.6%, and the Reserve Bank of Australia’s continued vigilance to reduce our 5.4% inflation rate meant “softer housing market conditions ahead”.
The slowing down of value rises in the cities would play out in regional Australia “more broadly at least until interest rates top out”.
Higher interest rates, prices, rents and living expenses were likely to weigh on buyer sentiment.
Nationally, CoreLogic said 82.4% of 4,506 suburbs registered value increases representing 83.1% of suburban house markets and 80.6% of unit markets.
Perth was the strongest market leading into the year’s final quarter while Hobart and Darwin were flat or falling.
Sydney and Melbourne were running at ‘mid-speed’ with city-wide capital growth of 2.5% and 1.2%, respectively.
The highest annual growth in the regions was achieved by Bundaberg in Queensland (10.8%) while Batemans Bay in NSW (-6.9%) was at the bottom rung of the ladder.
If you are thinking of selling in 2024, check out these tips for understanding how to approach the market.
Local insights
Australia’s real estate scene comprises thousands of micro-markets, each with different characteristics. That’s true of metro suburbs and small towns outside the city limits. Always discuss local pricing with a trusted agent to set your expectations accurately.
Price realistically
We don’t mean discount. If you acknowledge the current economic and market conditions, you’ll pitch your property in the right price bracket and find a buyer.
Sticker shock
With interest rates high, buyers are anxious about paying too much. If you push your price or auction reserve too high, the strategy will likely backfire. Consequently, your home will languish and lose value because buyers dismiss it.
Go green
Your agent should highlight energy-saving features in the property. With such expensive utility bills, buyers are aware of the cost of running a home and will favour properties that minimise overheads.
Stage show
Preparing your home for sale is critical in a quest to maximise its value. Consider using a professional company to stage your home with rented furniture explicitly chosen to accentuate the best features of your house.
Be flexible
You never know what time of day a prospective buyer might want to view your property, so be flexible. You may also attract a buyer by being flexible on the settlement period.