What happened in 2023 and what you need to know to protect your property investment and future returns
What a year it's been for property investing and real estate overall. Ever since COVID struck in 2020, we have seen phenomenal growth in the market in both sales and rental, and the changes keep on coming.
Read below for my recap, and 2024 predictions.

Sales market blows up
You would have to be living under a rock to not be aware that the value of properties has gone through the roof. Most properties in Adelaide saw exponential growth, despite rising interest rates.
We all have access to recent sales information, and have seen the auctions in our areas outperform one after the other.
The fact remains that there is simply not enough houses for everyone, which has created this growth and demand. Housing is definitely not something we can go without.
RBA is the gift that keeps on taking
Interest rates were raised in February, March, May, June and November, off the back of 7 increases the year prior. There was a lot of speculation on mortgage cliffs, and mortgage stress, the media loved playing up the drama on this, which seems to be unrealised and anecdotally, I speak to investors and home owners alike who have been prepared for the change off a low fixed rate, and whilst not happy about it, have been managing and hoping this situation is temporary.
We also got rid of the former RBA Governor, and put a woman in the role... and so far, its an improvement and we like Michele, but there is still time in 2024 to change our minds on that if there's any more rises to come.
Vacancy rates
For most of the year, Adelaide has recorded the lowest vacancy rate in the country. But what exactly does this mean?
It doesn't mean that tenants are willing to pay $800pw for a $400pw property, there is still price sensitivity in properties above $500pw, whereas properties under that price are extremely rare, and have seen the highest increases in price just due to a lack of supply.
It seems to be impossible to rent anything in Adelaide under $350pw, and for those that have a property under that, they have likely lived in the property for quite some time and what I call "legacy tenancies".
Legislation changes
We had a very sudden and abrupt change to bonds early in the year, to align SA with the other states. We had continued review of upcoming legislative changes, and it was announced in November that a high number of legislative changes were passed in parliament, such as not prohibiting pets, and no fault evictions.
Most of these changes mimic other states legislation.
This legislative change has not come into effect until they table the regulations, but if the change to bonds is anything to go by, the change will be swift and radical, so we as an industry, need to be prepared.
What next? 2024 Prediction?
I believe sales will continue to perform well, as will rentals - the critical housing shortage is not changing anytime soon. We will continue to see a steady increase to both markets, with natural highs and lows. As I always say, real estate is never as cheap as it is today.
I believe we are in for more interest rate rises, maybe 2 more, but the majority of the year will be a wait and hold pattern from the RBA. I believe the reduction won't commence until 2025 at the earliest, or late 2024.
I predict we are in for some short term pain as the legislation becomes valid, but as we saw in VIC, it won't result in a mass exodus of investors from the market, but it will result in more losses for investors if not handled correctly.
This is why it's more important than ever to ensure you have the right agent looking after your property. Now is not the time to let this slide, and if you aren't having these conversations with your property manager or sales agent, now is the time to start so you can ensure that you and your property are prepared, and you can make the right decisions to suit you and your needs.
As always, I am only a phone call or email away on 0426 241 676 or hello@tayloredproperty.com.au, and I am always happy to chat.
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