Real Estate - Australia | Statista Market Forecast

The Real Estate market market in Australia is projected to reach a value of US$7.92tn by 2024.
Residential Real Estate dominates the market with a projected market volume of US$6.25tn in the same year.
This segment is expected to show an annual growth rate (CAGR 2024-2029) of 1.81%, resulting in a market volume of US$8.66tn by 2029.
In global comparison, United States is expected to generate the highest value in the Real Estate market market, reaching US$132.0tn 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.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

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.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Australia

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Value Split

Volume

Analyst Opinion

Transaction Value

Methodology

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