Rapid population growth in Australia has been a crucial factor driving demand in the real estate market. The increase in international migration and internal population movement has led to a continuous expansion of the population.

This has resulted in a growing demand for housing, especially in densely populated urban areas. With population growth, homebuyers and investors are searching for housing that suits their needs, contributing to the rise in property prices.

Furthermore, the ongoing expansion of government infrastructure projects has provided robust support to the real estate market. Over the past few years, the government has increased investment in infrastructure development, including the construction of roads, railways, airports, and more.

These infrastructure projects not only stimulate economic growth across regions but also create additional employment opportunities. These factors collectively drive the development of the real estate market, attracting more homebuyers and investors.

In addition, low vacancy rates have become one of the factors propelling the increase in property prices. Due to population growth and the progress of infrastructure projects, housing supply is relatively limited, resulting in low vacancy rates in the market.

This supply-demand imbalance has led to fierce competition among homebuyers and investors for available housing, thereby driving up property prices. Especially in some popular urban areas, low vacancy rates require buyers to pay higher prices to find suitable housing.

However, despite the robust performance of the real estate market in 2023, it still faces potential risks and challenges. Firstly, as the Reserve Bank of Australia raises interest rates to counter inflationary pressures, rising interest rates may impact the purchasing power of homebuyers and investors. Secondly, a decrease in borrowing capacity could limit individuals' financing capabilities for real estate, reducing the number of buyers and investors in the market.

Moreover, affordability issues may exacerbate the uncertainty in the real estate market. As property prices rise, some homebuyers may find themselves unable to afford substantial mortgage burdens, potentially leading to a decrease in housing demand. The government and relevant authorities need to closely monitor affordability issues to ensure the healthy development of the real estate market.

Looking ahead to 2024, the Australian real estate market is expected to continue rising, but the growth rate is anticipated to slow slightly. Despite some uncertainties such as rising interest rates and decreased borrowing capacity, strong demand, limited new housing construction, and government land development strategies are expected to support the market. The rental market may continue facing pressure from insufficient supply and rising rents, while the activity of first-time homebuyers may remain relatively subdued.