Australian Property Market
december 2024 Overview
The Australian property market closed 2024 on a somewhat subdued note for housing & unit prices. National home values registered a slight decline of 0.1% in December, marking a cooling period after robust growth earlier in the year. Despite this small decrease, the year showcased remarkable resilience amidst challenges such as rising interest rates, increased living costs, and tightened lending conditions.
However, the headlines were far from negative for property investors. Cities like Perth, Adelaide, and Brisbane stood out as top-performing markets, achieving impressive capital growth and offering strong prospects for 2025.
Australian Real Estate tech platform, Core Logic recently released the data we have examined below.
Monthly and Annual Changes: The Numbers at a Glance
December’s Monthly Changes:
The month of December brought mixed results for Australia’s major cities:
- Sydney: Down by -0.6%, as affordability pressures continued to weigh on the market.
- Melbourne: Also dropped by -0.7%, extending a trend of weak performance throughout the year.
- Brisbane: Recorded modest growth of 0.5%, supported by steady demand.
- Adelaide: Outpaced most cities with a 0.6% increase, thanks to tight supply levels.
- Perth: Led the charge with a 0.7% rise, reinforcing its position as a robust market.
Annual Performance:
For the year, Perth claimed the top spot with an astonishing 19.1% increase in property values, followed by Adelaide at 13.1% and Brisbane at 11.2%. On the other hand, Melbourne experienced the sharpest decline at -3.0%, with Hobart (-0.6%) and Canberra (-0.4%) also ending the year in the red.
December 2024: Australian Property Market Overview
australian property market – Regional Markets Shine Bright
While Australia’s capital cities delivered varied performances, regional markets continued to thrive. Combined regional areas outperformed capital cities with a 6.0% annual growth, compared to the 4.5% rise seen across the capitals.
Standout regions included:
- WA: +16.1%, buoyed by strong demand in mining areas.
- SA: +12.5%, with growth supported by affordable housing options.
- QLD: +10.5%, reflecting increasing interest in lifestyle-driven locations.
The strength of regional markets underscores their appeal to both investors and owner-occupiers seeking affordability and quality of life.
australian property market – Spotlight on the leaders: Perth, Adelaide & Brisbane
Perth: The Undisputed Winner
Perth emerged as the clear winner in 2024, with dwelling values surging by 19.1%. The city benefited from its relative affordability and growing interest in lower-quartile housing. Perth’s job market, supported by a thriving resources sector, has also played a key role in attracting buyers and investors alike. Despite some slowdown in the latter half of the year, Perth’s fundamentals remain strong, and it continues to offer attractive investment opportunities.
Adelaide: Small But Mighty
Adelaide quietly climbed the ranks in 2024, with a standout 2.1% rise in values in the December quarter, surpassing Perth during this period. A lack of stock—34% below the five-year average—kept prices buoyant. Adelaide’s blend of affordability, strong local economy, and a family-friendly lifestyle has made it a magnet for buyers and investors.
Brisbane: A Steady Performer
Brisbane continued its steady ascent, registering an annual growth of 11.2%. The city has benefited from consistent interstate migration, driven by its lifestyle appeal and ongoing infrastructure improvements. With property values still relatively affordable compared to Sydney and Melbourne, Brisbane remains an attractive market for both investors and homebuyers.
How to Invest Safely Interstate
Buying an investment property interstate can be a daunting prospect. Especially if you try to ‘go it alone’ and do it all yourself. You risk choosing the wrong Australian property market, the wrong micro-market and potentially falling into a dud investment. Our previous article 6 Reasons to Consider Buying an Interstate Investment Property may help shed some light on the process. Its not as daunting as you may think – and Prospa Property Advisory is here to here to safely guide you through the process.
The Affordability Factor
Affordability remained a defining theme in 2024. The lower quartile of the housing market saw the strongest growth, with values rising by 9.8%, compared to just 1.5% growth in the upper quartile. This trend highlights how reduced borrowing capacities and affordability constraints have shifted demand towards more budget-friendly options.
CoreLogic Head of Research, Eliza Owen, said about the Australian property market: “The market’s initial strength in 2024 gradually waned due to declining demand, rising levels of advertised supply, and a shifting outlook for inflation and interest rates.” Further comments from Core Logic can be found HERE
australian property market – Looking Ahead: What to Expect in 2025
The outlook for 2025 remains cautiously optimistic. Interest rates are expected to begin easing, with the potential for a 25-basis-point cut by April and further reductions later in the year. This could boost consumer confidence and borrowing capacity, creating opportunities for renewed value growth in markets like Perth, Adelaide, and Brisbane.
However, affordability challenges and limited housing supply are likely to persist, tempering any dramatic rebounds. Regional areas are also expected to continue their upward trajectory, offering a viable alternative for those priced out of the capitals.
How Prospa Property Can Help
As 2024 has shown, property investment success lies in choosing the right Australian property market. At Prospa Property Advisory, our QPIAs have been actively sourcing high-growth investment property opportunities in Perth, Adelaide, and Brisbane. Our clients have achieved outstanding results, leveraging these markets’ strong fundamentals to secure excellent returns.
Contact us today to explore tailored investment strategies that align with your financial goals. Whether you’re a seasoned investor or just starting, Prospa Property is here to guide you every step of the way.
