Australia’s housing landscape in 2024 is defined by remarkable growth and recovery. Cities like Perth, Brisbane, and Adelaide are leading the charge, setting new benchmarks in value growth. This article offers a comprehensive analysis of the top 10 housing markets, highlighting key factors driving their success.
We’ll examine each market’s growth drivers, key suburbs, and investment potentials. Expect insights into market trends, affordability, and the impact of economic factors. Whether you’re an investor or a homebuyer, these insights are crucial for navigating Australia’s dynamic real estate environment in 2023.
What Happened to the Australian Housing Market in 2023
Trend Overview
In 2023, Australia’s housing market demonstrated a significant rebound. The National Home Value Index increased by 0.9% in October, signalling a robust recovery. This rise came after a 7.5% fall from May 2022 to January 2023.
Despite a slowdown in capital city growth, Perth, Brisbane, and Adelaide have demonstrated some of the strongest gains, buoyed by employment growth, affordability, and strong rental returns, appealing to a wide range of buyers and investors.
Here’s a quick rundown of what’s happening in the property market.
Quick Facts
| National Index | Increased by 0.9% in October 2023 |
| Capital Cities | Growth slowing, remains positive |
| Leading Cities | Perth, Brisbane, Adelaide |
| Standout Performance | Brisbane house price achieve record highs |
The current trends suggest the market is stabilising, transitioning from earlier volatility to a more balanced state. For those interested in exploring real estate for sale, this presents an opportune moment.
Adelaide, Perth, and Brisbane: Investment Hotspots of 2024
These markets are distinguished by their solid investment credentials, driven by strong employment growth, housing affordability, and attractive rental yields. They offer diverse opportunities, from low entry points for first-time buyers to strong rental demand for investors, and excellent lifestyle amenities for families and retirees. Proximity to the CBD is crucial, emphasizing the value of established properties within a 45-minute commute to the city center, steering clear of off-the-plan developments.
Sydney’s market faced challenges at the start of 2023 but rallied to close the year with an 11.4% increase. This resilience is attributed to the slowing of rate rises and a tight housing stock. However, the ongoing housing supply shortage, compounded by supply chain issues and a scarcity of skilled labor, signals continued growth in early 2024 but warns of potential modest gains and heightened mortgage stress if interest rates rise.
Melbourne and Canberra have mirrored Sydney’s patterns to an extent, with Melbourne’s market seeing modest gains of 3.9% over the past year and Canberra’s market stabilizing after years of significant growth. Both cities are poised for a cautious outlook into 2024, with interest rate movements being a decisive factor for future trends.
Conversely, Darwin and Hobart are flagged as markets facing challenges in 2024, particularly due to a lack of job diversity and infrastructure spending, making them less attractive to investors.
1. Adelaide: A Market of Resilience and Affordability
Adelaide demonstrates remarkable growth, with housing values rising by 1.3% in October 2023. This robust performance is underpinned by strong economic factors and surging buyer demand.
Adelaide offers affordability, tight supply, and steady population growth, making it a popular choice for many.
Adelaide Suburbs to Watch in 2024:
- Playford
- Salisbury
- Onkaparinga
Property Investment Data for Key Adelaide Suburbs
The table provides a comparison of the typical property prices in these Adelaide suburbs and their changes over the past quarter and year for each suburb.
| Suburb | Typical Price | Per Quarter Change (Δ1Q) | 1 Year Change (Δ1Y) |
|---|---|---|---|
| Playford | $558,501 | 1.89% | 11.00% |
| Salisbury | $643,821 | 1.46% | 8.24% |
| Onkaparinga | $732,839 | 1.33% | 6.30% |
Investment Potential: Investors can expect stable capital appreciation and promising rental yield prospects in Adelaide.
Latest Market Data for Adelaide:
- Housing values increased by 7.7% since March, reaching new record highs each month since June 2023.
- House values outpaced unit values, indicating a diverse and growing market.
2. Perth: Booming from Resources and Affordability
Growth Factors
Already showing significant price growth in 2023, Perth benefits from an affordable housing market, low supply, and strong population growth.
In 2024, this city is expected to see a price increase between 2% and 5%, thanks to its robust resource sector.
Perth Suburbs to Watch in 2024:
- Brookdale
- Armadale
- Hilbert
- Ravenswood
- Stirling
- Churchlands
- Karrinyup
| Suburb | Median Sale Price | Annual Growth | Average Days on Market |
|---|---|---|---|
| Brookdale | $365,000 | 14.3% | 8 days |
| Armadale | $370,000 | 21.3% | 8 days (houses), 26 days (units) |
| Hilbert | $485,000 | 10.2% | 12 days |
| Ravenswood | $463,000 | 9.2% | 14 days |
| Stirling | $964,000 | 5.2% | 14 days |
| Churchlands | $1,195,000 | 5.8% | 15 days |
| Karrinyup | $1,305,000 | 6.4% | 16 days |
It’s evident that all four suburbs have experienced significant growth, with Armadale showing the highest annual growth rate. Perth presents a unique opportunity for both capital growth and as an entry point for a first time home buyer investment property.
Perth Investment Outlook
Perth presents a unique opportunity for both capital growth and an entry point for first-time buyers. The city’s real estate market is supported by a low supply and strong demand dynamic.
Market Insights
- Sales Activity: Stable, with weekly sales averaging 895 in 2022
- Price Trends: Median house price rose to $585,000 in November 2023
- Demand Drivers: Population growth and economic stability
Additionally, below is a look at the rapid growth of suburbs like Churchlands and Karrinyup.
| Category | Churchlands | Karrinyup |
|---|---|---|
| Median House Price | $1,600,000 | $1,150,000 |
| Quarterly Growth | +1.59% | +4.55% |
| Weekly Median Rent | $1,050 | $770 |
| Gross Rental Yield | 3.22% | 3.70% |
These suburbs are recognized for their high median house prices and have been included in the National Top 100 list of Supercharged Suburbs.
Why Stirling Stands Out in Perth
Stirling’s real estate market is known for its diversity, offering everything from affordable options to high-end precincts. Its reputation as a family-friendly area with diverse housing choices and ongoing infrastructure projects makes it a consistent performer in Western Australia’s property market.
In Stirling, the market’s strength is evident in its top-ranking performance among Perth’s property hotspots. The local government area (LGA) is celebrated for its amenities and is the second-largest employment area in Western Australia.
With most of its suburbs showing positive growth trends, Stirling offers a mix of investment opportunities for long-term growth and stability.
3. Brisbane: Affordability and Opportunity Beyond the CBD
Property Growth Dynamics
Brisbane’s housing market, after a significant boom in 2020 and 2021, underwent a downturn but has recently shown a remarkable recovery. The city’s housing values have rebounded impressively, with a 10.5% increase since January 2023.
With diverse industries and infrastructure development, Brisbane attracts investors and homeowners seeking a strong potential for capital growth.
Brisbane Suburbs to Watch in 2024:
These suburbs are gaining attention for their balance of growth and affordability.
- Aspley
- Boondall
- Mitchelton
| Category | Aspley | Boondall |
|---|---|---|
| Median House Price | $900,000 (Houses), $577,500 (Units) | $760,000 (Houses), $535,000 (Units) |
| Annual Capital Growth | -5.01% (Houses), 12.14% (Units) | -8.43% (Houses), 9.18% (Units) |
| Quarterly Growth | -1.10% (Houses), 2.67% (Units) | +0.13% (Houses), 2.59% (Units) |
| Weekly Median Rent | $650 (Houses), $530 (Units) | $600 (Houses), $495 (Units) |
| Gross Rental Yield | 3.77% (Houses), 4.85% (Units) | 4.29% (Houses), 5.47% (Units) |
Brisbane Property Market Overview
Brisbane’s market recovery is notable for its blend of growth and affordability. The city’s median house value, being substantially lower than Sydney’s, makes it an increasingly attractive option for investors.
Additionally, the high demand in Brisbane’s rental market, combined with historically high rents, indicates a landlord-friendly environment.
Population Growth of the Top 3 Hottest Housing Markets
This chart shows clearly: Perth, Adelaide, and Brisbane are growing fast. As more people move there, the need for houses will increase. This makes these cities great for investing and moving to.
4. Wollongong NSW: Emerging Regional Market
Growth Catalysts
Wollongong, stepping out from Sydney’s shadow, offers affordability and lifestyle appeal. It’s emerging as a regional champion with significant growth in housing values, supported by its natural beauty and educational institutions.
Key Areas for Investment in Wollongong
Wollongong CBD
- Office Market Growth: Increasing, with new supply.
- Vacancy Rates: Increased slightly due to new supply.
- Future Office Space: Additional supply planned for 2024 and beyond.
Illawarra Region
- Economic Development: Focus on infrastructure and community projects.
- Community Initiatives: Enhancements in lifestyle and culture.
These areas are increasingly popular for their balance of urban and natural amenities.
Investment Prospects
Wollongong provides strong rental yields and potential for growth, influenced by its proximity to Sydney. The market has seen a considerable increase in demand for both houses and units.
Market Overview
Wollongong has also shown significant population growth in recent years.
| Market Aspect | Details |
|---|---|
| Median House Price | $1,175,000 |
| Annual Capital Growth | -16.07% |
| Rental Yield (Houses) | 2.86% |
5. Melbourne: Post-Pandemic Recovery and Diverse Opportunities
Growth Trajectory
Melbourne’s housing market has shown resilience post-pandemic, with a steady increase of 4.5% in housing values since January 2023.
Based on the provided information, here’s a simplified table focusing only on the data for Melbourne’s housing market in 2023 with predictions for 2024:
| Aspect | 2023 Data | Predictions for 2024 |
|---|---|---|
| Median House Price | $934,000 | Continued demand; affordability advantage |
| Median Unit Price | $634,000 | Continued demand |
| Market Trend | Interest in properties ≤$700,000 | Continued interest from first-time buyers |
| Rental Market | High demand, low supply | Likely to remain challenging |
The city experienced a downturn but is now in a phase of recovery, characterized by steady growth.
Market Analysis
In Melbourne, the recovery trajectory varies across sub-regions. The Inner and Outer East are marginally outperforming, while the North West and West are stabilising.
This variation in recovery rates across different areas highlights the diverse investment opportunities within Melbourne’s property market.
7. Canberra: Stability in a Volatile Market
Market Resurgence
Canberra’s housing market is witnessing a recovery, emerging from its steepest downturn. With a 1.8% growth in median house prices over the September quarter, the market is moving towards regaining its peak levels.
Key statistics of Canberra’s property market recovery:
| Statistic | Value |
|---|---|
| Median House Price | $1,042,730 |
| Quarterly Growth (Houses) | 1.8% |
| Median Unit Price | $567,059 |
| Quarterly Change (Units) | -0.6% |
Market Characteristics
The market in Canberra is diverse. While house prices show an upward trend, unit prices have seen a decline. This mixed performance provides varied opportunities for investors and homebuyers alike. Canberra’s total supply is currently above the five-year average, offering more choices in the market.
For those interested in beachside living, it’s worth exploring the most affordable beach suburbs in Victoria.
8. Gold Coast, Queensland
In recent years, the Gold Coast in Queensland has emerged as a beacon for those seeking a blend of lifestyle and investment opportunities.
Known for its stunning beaches, vibrant lifestyle, and burgeoning development, the Gold Coast is increasingly becoming a hotspot in the Australian housing market.
Learn more in our guide on Gold Coast Property Price Predictions.
Market Dynamics
The Gold Coast’s property market has shown resilience and growth, even amidst broader economic challenges. With its unique appeal combining urban amenities and coastal charm, the region has seen a steady increase in demand. This demand is not just from local buyers but also from interstate migrants seeking a sea change.
Recent Trends
According to recent reports, the Gold Coast has experienced a significant surge in property values. House prices on the Gold Coast have increased by an impressive 96.3% over the past eight years.
This trend is expected to continue, with predictions that Gold Coast house prices may outstrip those in major capital cities by 2030.
Investment Outlook
The investment potential in the Gold Coast is bolstered by its diverse real estate offerings, ranging from luxury waterfront properties to affordable suburban homes.
Here’s a table summarizing the key real estate market statistics for the Gold Coast, Australia:
| Market Aspect | Value |
|---|---|
| Average House Purchase Price | $1,020,183 |
| Average House Rental Price | $650 per week |
| House Rental Yield | 3.2% |
| Average Unit Purchase Price | $580,000 |
| Average Unit Rental Price | $520 per week |
| Unit Rental Yield | 4.2% |
This table provides a snapshot of the Gold Coast property market, indicating a healthy rental yield and a strong market for both houses and units.
The market remains buoyant despite fluctuations in population growth, underlining its resilience and appeal to a broad spectrum of buyers and investors.
9. Geelong: Industrial Growth Fuels Market Potential
Market Overview
Geelong’s real estate market is showing strong performance, with a significant 14.61% annual capital growth in house prices. This growth is driven by its robust industrial sector and appealing lifestyle, making it a key area for growth and opportunity.
Geelong benefits from spillover effects and offers relative affordability compared to its neighbour, Melbourne. Some of the best suburbs to live in Geelong include Geelong West, Bell Park and Hamlyn Heights.
Here’s a table focusing on the most crucial statistics for assessing the investment potential in Geelong’s property market:
| Statistic | Value |
|---|---|
| Median Listing Price (Houses) | $829,000 |
| Price Change Over Last Year | -1.90% (Houses), 7.53% (Units) |
| Median Rent (Houses) | $500 per week |
| Rental Yield | 3.13% (Houses), 3.42% (Units) |
Investment Opportunities
With a median house price of $1,020,000 and rental yields at 3.13%, Geelong offers a balanced investment landscape. Its proximity to Melbourne further enhances its appeal, attracting a mix of commuters and local residents.
10. Darwin: Resource-Driven Growth with Emerging Opportunities
Market Growth
Darwin’s housing market, influenced by its resource industry and government investments, has experienced a growth of 2.2% since May 2023. This increase reflects Darwin’s potential as an emerging market with opportunities for growth-oriented investments.
Here are the key statistics for the Darwin property market as of September 2023:
- Median House Price: Increased by 4.4% to $590,000, and annually by 7.3%.
- Median Unit Price: Increased by 2.3% to $400,000, but decreased annually by 0.9%.
- Median Weekly House Rents: Decreased by 8.8% to $562 per week, and annually by 5.7%.
- Median Weekly Unit Rents: Increased by 3.1% to $485 per week, and annually by 4.5%.
Market Potential
Darwin, with its unique position in the Northern Territory, presents a high-risk but high-reward scenario for experienced investors. The growth, driven by regional resource investments, makes it an intriguing market for those seeking opportunities beyond traditional capital cities.
Conclusion
In conclusion, the Australian housing market in 2024 is marked by significant growth and recovery, with cities like Perth, Brisbane, and Adelaide leading the way.
As we have seen, each market presents unique opportunities, underpinned by factors such as affordability, population growth, and economic stability.
For investors and homebuyers alike, understanding these dynamics is crucial for making informed decisions in a rapidly evolving real estate landscape.
The Australian housing market’s resilience and diversity, as demonstrated in these top markets, indicate a robust future for real estate investment and ownership in the country.
More to Explore: Don’t miss out on our detailed guide about tips for first home buyers for additional information.
FAQs on ‘Hottest Housing Markets in Australia for 2024’
What suburbs will boom in 2024?
In 2024, suburbs expected to experience significant growth include inner-west areas such as Five Dock and Marrickville, which are anticipated to be hot buys. Additionally, Canterbury-Bankstown and its surrounding suburbs are emerging as hotspots. Growth opportunities are also predicted in far western areas like Rooty Hill and Mount Druitt.
Which city in Australia has the highest house prices?
Sydney holds the record for the highest house prices in Australia. It is home to 11 of the 12 most expensive suburbs in the country. The prime property markets in Sydney, along with Perth and the Gold Coast, are achieving world-class capital growth.
What’s the most expensive suburb in Australia?
As of the latest data, Bellevue Hill in New South Wales is the most expensive suburb in Australia. Other notably expensive suburbs include Vaucluse, Woolwich, and Tamarama, all located in New South Wales.
