Inside Real Estate – 11 December 2024: A year in review

As we prepare to say goodbye to 2024, it’s a good time to reflect on a year of change and challenge for our industry. Sustainability, technology, and economic pressures defined the landscape, and have set the stage for further evolution in 2025.

This year marked a significant shift in consumer priorities toward environmentally friendly properties. From energy-efficient homes to green-certified developments, sustainability went mainstream. There has been increased demand for solar energy systems and passive design principles reflecting a collective move toward eco-conscious living.

2024 also saw a deeper integration of technology into real estate, with AI tools reshaping everything from property marketing to management. Some of this included virtual tours, AI-generated valuations, and predictive analytics. And agents and agencies adopting these tools were able to gain a competitive edge, streamline operations and enhance customer experiences.

High inflation and elevated interest rates continue to impact our industry, creating challenges for buyers, investors and renters alike.

Reduced borrowing capacity and slower property transactions were offset by a resilient rental market, primarily due to the fact that many who are currently renting simply cannot afford to buy in the current economic climate.

I think what we all learned though is that some compassion, flexibility and informed decision-making were essential for navigating the uncertain economic conditions.

Looking ahead to 2025, we can expect the key themes of sustainability, technology, and economic management to stay, along with adding some new dynamics into the mix such as:

The next federal election: With an election on the horizon for next year, potential policy shifts could reshape the property market, particularly in housing affordability, taxation, and infrastructure investments.
Ongoing tech evolution: Expect even more sophisticated AI tools that will continue to revolutionise property transactions and perhaps even ownership models.
Increased sustainability goals: As Australia accelerates its climate commitments, the push for greener homes and developments will only intensify.

2025 promises to be another transformative year, requiring industry players to stay agile, informed, and proactive in adapting to evolving trends.

This is our final newsletter for 2024, so I wanted to leave you with two things…

We’re thrilled to announce the launch of REIP’s brand-new monthly podcast, Behind the Numbers, hosted by renowned property expert Nerida Conisbee. Each month, Nerida will dive into the latest market updates, uncovering the key data and trends shaping the Australian real estate industry. Whether you’re a buyer, seller, or industry professional, Behind the Numbers will offer valuable insights to help you stay ahead. Keep an eye out for more information in 2025.

And lastly, I want to take this opportunity to thank you for your support throughout the year.
From all of us at REIP, we wish you and your loved ones a safe and joyous Christmas and a fantastic start to the new year. We look forward to reconnecting with you when the REIP team returns on 1 February 2025.

Until then, please enjoy the festive season, and here’s to an exciting 2025!

Until next time,
Stay connected.