February 2024 :: Market Updates
2024 Market Forecast - A Year Of Transactions
Drew Williams answers the questions that most people have been asking going into 2024, what's the feel in the market? and what's the outlook for 2024?
Hello all, and welcome to 2024! After being back in the industry for about a week, one question has been on everyone's mind: what's the outlook for the market in 2024? Here’s a brief overview based on the latest trends and activities.
Strong Transaction Completion
This past week, we've seen all the transactions that were in progress or nearing completion in December follow through successfully into the new year. It’s not uncommon for deals to fall through after the Christmas break, but this year, they've been finalized with strength, indicating robust market stability.
High Inquiry Levels
The level of inquiries over the Christmas break was notably high. One property received over 30 inquiries within a two to three-week period, and other properties also saw above-average interest. This surge in inquiries suggests heightened activity and interest in the market as we begin 2024.
Positive Market Vibe
Conversations with the sales team reveal a positive vibe and renewed confidence in the market. We've already seen numerous transactions completed within the first week of the year. This confidence seems to stem from the belief that we’ve likely hit a peak with interest rate increases, and rates might even start to decrease by the end of the year.
Regional Business Confidence
The business confidence in Melbourne's northern and western regions is notably strong and positive. This optimism is mirrored in the industrial property market, where we've observed a slight but much-needed loosening of stock. After years of less than 1% vacancy rates, this increase in available properties is a welcome change.
Market Steadiness
Despite the slight increase in stock, we don't expect prices to decrease. Instead, the market appears to be stabilizing. The inquiries remain strong, and the slight loosening of stock is facilitating more transactions. This steadiness is beneficial for vendors and landlords, as it provides clearer insights into market values, making it easier to make long-term decisions regarding purchases and leases.
Looking Ahead
With a more stable market, clearer market values, and continued strong inquiry levels, 2024 is shaping up to be a year of significant transactions. Vendors and landlords can now navigate the market with more confidence, knowing what constitutes a good deal in this steadier environment.
