The Australian property market in 2024 has remained dynamic, with regional and urban disparities shaping its trajectory.
Major cities like Sydney and Melbourne are facing cooling price growth, while affordable markets in Perth and Adelaide continue to attract attention.
So, how can we look to 2025?
Current Market Snapshot
🔍: Regional markets like Perth and Adelaide continue outperforming capital city averages.
Sydney and Melbourne are seeing mixed results as interest rates and affordability pressures weigh on buyer demand.
Sydney’s median house price has remained stable but recorded a slight dip of 0.3% over the last quarter.
Meanwhile, Melbourne’s market shows signs of recovery, with prices increasing by 0.5% in October, the first notable growth since early 2024.
In contrast, Perth and Brisbane lead growth among capital cities.
Perth’s median house price rose 4.5% this quarter, driven by sustained demand and limited supply, while Brisbane’s property values climbed 3.8% over the same period.
Auction clearance rates reflect this fragmentation: Sydney’s clearance rate dropped to 57%, while Perth reported a solid 65%, reinforcing its position as a growth market.
Emerging Trends in the Australian Property Market
Rentvesting Gains Traction
🔍: Increasing popularity of “rentvesting” among younger Australians.
Younger Australians are embracing “rentvesting” to enter the property market.
By renting in desirable locations while investing in more affordable suburbs, they maintain lifestyle flexibility while building equity.
This trend reflects shifting priorities among millennials and Gen Z buyers balancing rising costs and long-term goals.
Coastal and Regional Markets (Continue to) Flourish
Lifestyle changes post-pandemic continue to fuel demand for coastal and regional properties.
Areas like Adelaide’s coastal suburbs and parts of Southeast Queensland are benefiting from affordability and better work-life balance options.
Investors are particularly drawn to these regions for lower entry prices and potential capital growth.
2 Major Challenges Ahead
🔍: Supply gaps persist, especially for A-grade properties.
Persistent Supply Gaps
Supply constraints remain a critical issue. A-grade properties—homes in prime locations with strong investment potential—are scarce, with sellers reluctant to list due to uncertainty.
This imbalance between supply and demand keeps prices elevated, particularly in capital cities like Sydney and Melbourne.
Rental Market Pressure
Australia’s rental market remains under strain, with demand far outstripping new construction. Vacancy rates in cities like Brisbane and Perth are below 1%, leading to significant rental price increases.
For investors, this translates into attractive yields, but for tenants, affordability challenges are acute.
If you are experiencing these challenges, you can explore useful tips on how to get a rental property in a hot market.
Opportunities for 2025
🔍 Potential impacts of interest rate cuts on buyer confidence.
🔍 Sectors poised for growth: affordable suburbs, multi-dwelling developments, and regional hotspots.
Impact of Interest Rate Cuts
Expected rate cuts in mid-2025 could reignite buyer confidence, particularly in mid-tier markets.
Reduced borrowing costs are likely to draw first-home buyers and investors back into the market, potentially accelerating price growth in affordable suburbs and fringe metropolitan areas.
Growth Sectors to Watch
Affordable suburbs with strong infrastructure developments, such as Brisbane’s outer north and Adelaide’s southern fringe, are set to benefit from sustained interest.
Multi-dwelling developments, especially in inner-city areas, also present opportunities as urban density increases.
Meanwhile, regional hotspots with lifestyle appeal continue to offer strong potential for capital appreciation.
Final Words on the Australian Property Market in 2024
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The coming year 2025 might be a challenging year for the real estate industry. Bigger changes may affect both buyers and sellers, especially regarding increasing mortgage rates. Nonetheless, don’t let such changes scare you.
Instead, use it to your advantage to look for the right opportunity to purchase or rent a house, whatever suits your needs and budget.
FAQs on ‘Australian Property Market: 2024 Forecast’
Should I sell my house now or wait until 2024 in Australia?
If you’ve owned your investment property for a few years and have achieved good capital gains, now may be a good time to sell. Property values have risen sharply since the pandemic, and while 2024 is expected to see more gradual growth, selling now might allow you to make the most of your gains.
What are predicted house prices in 2025 in Australia?
By the end of FY25, it’s predicted that Sydney’s house prices will surpass $1.7 million, Perth will reach $800,000, and Brisbane will be close to $1 million. Adelaide is also forecasted to reach a $1 million median by the end of 2025.
What is the real estate forecast for the next five years in Australia?
National home prices have seen a 2.73% growth this year, and some areas may see their home values double within the next five years. Overall, prices are up 9.58% since December 2022, showing a strong upward trend.
What are the predicted mortgage rates in Australia for 2024?
The predicted mortgage rates for major Australian banks in Q4 2024 are as follows: NAB 4.35%, ING 4.60%, CBA 4.10%, and ANZ 4.35%. These rates may slightly decrease by Q2 2025.
What is the housing crisis in Australia in 2024?
Housing affordability in Australia has reached its worst point on record. There are too few affordable properties available, and the country’s social housing infrastructure has been neglected for decades. As of July 2024, over 120,000 people are experiencing homelessness.
Where to buy property in Australia in 2024?
In 2024, top investment suburbs include Wiley Park and Kensington in Sydney, Caloundra West and Southport in South East Queensland, and Carlton and Moonee Ponds in Melbourne. These areas are expected to offer strong growth potential.
What will houses be worth in 2030 in Australia?
Australia’s median dwelling price is forecasted to reach around $1.2 million by 2030, with some properties expected to outperform this average by 50-100%. However, growth rates will vary, so it’s essential to research specific areas before investing.
For insights into how these trends might play out in the long term, check out the predicted house prices in 2030 Australia.
