Real Estate - Australia & Oceania

The Real Estate market market in Australia & Oceania is estimated to reach a value of US$8.90tn in 2024.
The dominant segment within this market is Residential Real Estate, which is projected to have a market volume of US$7.00tn in 2024.
Over the period from 2024 to 2029, it is expected to grow at an annual rate of 2.11%, resulting in a market volume of US$9.89tn by 2029.
In terms of 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 & Oceania is experiencing significant growth and development.

Customer preferences: Customers in Australia & Oceania are increasingly looking for properties that offer a high standard of living and amenities. They prefer properties that are located in desirable neighborhoods with access to good schools, healthcare facilities, and recreational areas. Additionally, there is a growing demand for properties that are energy-efficient and environmentally sustainable. Customers are also interested in properties that offer modern designs and innovative features.

Trends in the market: One of the key trends in the Real Estate market in Australia & Oceania is the rise of urbanization. As more people move to cities in search of better job opportunities and a higher standard of living, the demand for residential properties in urban areas has increased. This has led to the development of high-rise apartments and condominiums in major cities across the region. Another trend in the market is the growing popularity of vacation homes and holiday rentals. Australia & Oceania is known for its stunning natural landscapes and pristine beaches, attracting tourists from around the world. As a result, there is a strong demand for vacation homes and holiday rentals, especially in popular tourist destinations.

Local special circumstances: Australia & Oceania is home to a diverse range of cultures and communities, each with its own unique preferences and requirements when it comes to real estate. For example, in Australia, there is a strong demand for properties with outdoor spaces and gardens, as Australians value outdoor living and entertaining. On the other hand, in some Pacific Island countries, such as Fiji and Samoa, there is a preference for properties that are located close to the beach and offer ocean views.

Underlying macroeconomic factors: The Real Estate market in Australia & Oceania is influenced by various macroeconomic factors. One of the key factors is population growth. As the population continues to increase, there is a greater demand for housing, both for owner-occupiers and investors. This has led to an increase in construction activity and the development of new residential projects. Another important factor is the state of the economy. When the economy is performing well, with low unemployment rates and strong GDP growth, there is greater confidence among buyers and investors, leading to increased activity in the Real Estate market. Conversely, during periods of economic uncertainty or recession, there may be a slowdown in the market as people become more cautious about making large financial commitments. In conclusion, the Real Estate market in Australia & Oceania is experiencing growth and development driven by customer preferences for high-quality properties, the trend of urbanization, and the demand for vacation homes. The region's diverse cultures and communities also contribute to the unique preferences and requirements in different countries. Additionally, underlying macroeconomic factors such as population growth and the state of the economy play a significant role in shaping the market.

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 & Oceania

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