Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Transactions - Australia

Australia

In Australia, the market segment of Residential Real Estate Transactions market is anticipated to witness significant growth in the coming years.
It is projected that by 2024, the transaction value of this market will reach a staggering US$46.32bn.
Furthermore, it is expected to exhibit an annual growth rate of 5.62% from 2024 to 2028, resulting in a market volume of US$57.64bn by the end of 2028.
This indicates a promising outlook for the residential real estate sector in Australia.
The Australian residential real estate market is experiencing a surge in demand due to low interest rates and increased government incentives for first-time homebuyers.

Key regions: Asia, Japan, China, Europe, Germany

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Analyst Opinion

The Residential Real Estate Transactions market in Australia has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Australia, there is a strong cultural preference for homeownership, with many Australians aspiring to own their own homes. This preference is driven by the desire for stability and security, as well as the potential for long-term financial gains. Additionally, the Australian government provides various incentives and support for homeownership, further fueling this preference.

Trends in the market: One major trend in the Australian Residential Real Estate Transactions market is the increasing demand for urban living. As the population continues to grow and urbanization accelerates, there is a greater demand for housing in major cities and urban centers. This has led to a surge in residential real estate transactions in these areas, with developers and investors capitalizing on the high demand. Another trend in the market is the rise of online platforms and technology in the real estate industry. Australians are increasingly using online platforms to search for properties, compare prices, and even complete transactions. This has made the process of buying and selling homes more efficient and accessible, leading to an increase in residential real estate transactions.

Local special circumstances: Australia's unique geography and climate also play a role in the residential real estate market. With its vast coastline and beautiful beaches, there is a high demand for coastal properties, particularly in popular tourist destinations. Additionally, Australia's major cities, such as Sydney and Melbourne, are known for their vibrant cultural scenes and high quality of life, attracting both domestic and international buyers.

Underlying macroeconomic factors: The strong performance of the Australian economy has also contributed to the growth of the residential real estate market. Australia has experienced consistent economic growth, low unemployment rates, and low interest rates, creating a favorable environment for property investment. Additionally, foreign investment in the Australian real estate market has been significant, particularly from countries such as China, further driving demand and transaction volumes. In conclusion, the Residential Real Estate Transactions market in Australia is experiencing growth due to customer preferences for homeownership, trends such as urbanization and the use of online platforms, local special circumstances like coastal properties and vibrant cities, and underlying macroeconomic factors including a strong economy and foreign investment. These factors combined have created a thriving market for residential real estate transactions in Australia.

Methodology

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.