Real Estate - Australia

Australia

The Real Estate market market in Australia is projected to reach a value of US$7.56tn by 2024.
Residential Real Estate dominates the market with a projected market volume of US$5.84tn in the same year.
This segment is expected to show an annual growth rate (CAGR 2024-2028) of 3.57%, resulting in a market volume of US$8.70tn by 2028.
In global comparison, China is expected to generate the highest value in the Real Estate market market, reaching US$135.70tn in 2024.
Australia's real estate market is experiencing a surge in demand for coastal properties due to the country's beautiful beaches and outdoor lifestyle.

Key regions: United States, China, Japan, Germany, United Kingdom

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Analyst Opinion

The Real Estate market in Australia has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Australia have shown a strong preference for investing in real estate, particularly in major cities such as Sydney, Melbourne, and Brisbane. This is due to several factors, including the stability of the Australian economy, the high standard of living, and the attractiveness of the country as a tourist destination. Additionally, many Australians view real estate as a safe and reliable long-term investment option.

Trends in the market: One of the key trends in the Australian real estate market is the increasing demand for apartments and high-rise buildings. This is driven by factors such as population growth, urbanization, and changing demographics. Many young professionals and retirees are opting for apartment living due to its convenience and affordability. As a result, developers are focusing on constructing more high-rise buildings to cater to this growing demand. Another trend in the market is the rise of sustainable and eco-friendly housing. Australians are becoming more conscious of the environmental impact of their homes and are seeking properties that are energy-efficient and environmentally friendly. This trend is driven by government initiatives promoting sustainable housing and the increasing availability of green building materials and technologies.

Local special circumstances: Australia's unique geography and climate also play a role in the real estate market. The country's coastal areas, such as the Gold Coast and Sunshine Coast, are popular destinations for both tourists and residents. These areas offer beautiful beaches, a relaxed lifestyle, and a range of recreational activities. As a result, real estate prices in these coastal regions tend to be higher than in other parts of the country.

Underlying macroeconomic factors: Several macroeconomic factors contribute to the growth of the real estate market in Australia. The country has a stable economy with low inflation and unemployment rates, which instills confidence in investors. Additionally, low-interest rates make borrowing more affordable, encouraging individuals to invest in real estate. The government's policies, such as tax incentives for property investors, also contribute to the growth of the market. In conclusion, the Real Estate market in Australia is experiencing growth and development due to customer preferences for real estate investment, trends such as the demand for apartments and sustainable housing, local special circumstances such as coastal attractions, and underlying macroeconomic factors such as a stable economy and low-interest rates.

Methodology

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.