Understanding property market trends is important to be successful in the property investing world, so I’ve included some facts for you in this week’s blog about some of the 2023 market trends you should know about.
#1. 2023 has seen a record-breaking rent rise across many capital and regional areas with annual rental increases of 11.7%. Vacancy rates are also historically low, causing a rental crisis in some areas. We know this already but what you may not know is that this year, like no other, is set to be a landlord’s market.
#2. Rental demand is driven by students, migrants and short-term visa holders who are in search for affordable accommodation in medium to high density housing, with easy access to amenities. In 2021 to 2022, Australia welcomed almost 304,000 new migrants which has resulted in pressure on the rental market. This is set to continue with a projected 650,000 migrants arriving in Australia over the next few years. Further demand will also be likely with Australia’s population set to increase by 900,000 by 2025. This is great news for property investors.
#3. Even though we have seen 12 interest rate increases from the Reserve Bank of Australia, with official rates rise by 4 per cent over the last year, property prices aren’t dropping but at an all-time high and set to continue with this pattern.
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