This Week’s Australian Property Market Update – Latest Data, State by State December 10th 2024
The Australian property market has always been a focal point for investors, homeowners, and industry professionals, given its cyclical trends and varying conditions across states and regions. As we approach the end of the year, the Australian property market continues to show mixed signs of growth, stability, and challenges. This article delves into the latest data from December 10th, 2024, breaking down key updates from each state and providing insights into the market’s performance.
National Overview of the Australian Property Market
Australia’s property market has had a roller-coaster year in 2024. After experiencing significant growth during the pandemic’s aftermath, 2024 has shown more balanced conditions across the country, with certain markets starting to cool and others remaining robust. In recent months, the Reserve Bank of Australia (RBA) has kept interest rates relatively steady, creating some level of stability for the housing market. However, the economic uncertainty of global markets, inflation concerns, and shifting consumer sentiments continue to weigh on the outlook for the Australian property market.
According to the latest data, the national property market has seen modest growth in some capital cities, while regional areas have shown resilience, benefiting from lifestyle changes and demand for more space. The overall sentiment in the market remains cautious but optimistic, with an expectation for continued gradual growth into 2025.
New South Wales (NSW) Property Market Performance
New South Wales, particularly Sydney, has been a key player in the Australian property market for many years. Sydney, with its iconic harbour and desirable lifestyle, has seen consistent demand, though it has not been immune to market fluctuations.
As of December 2024, Sydney’s housing market has experienced moderate price corrections compared to the peaks witnessed in 2022. This is due in part to higher interest rates and the affordability crisis that has left many potential buyers on the sidelines. However, despite the price slowdown, Sydney’s rental market remains strong. With limited housing supply, rents have increased, particularly in the inner-city suburbs and near major transport hubs.
The regional areas in NSW have experienced more significant price growth in comparison to Sydney. Areas like the Central Coast, Newcastle, and Wollongong have become more attractive to both first-time buyers and investors due to the shift toward remote work. As a result, property prices in these areas have surged by up to 15% in the past year.
Victoria (VIC) – Melbourne’s Market Update
Melbourne’s property market, after a period of stagnation, has shown signs of recovery in late 2024. As the capital of Australia’s second-largest state, Melbourne remains a central hub for both real estate investment and residential demand. In the wake of the pandemic, Melbourne experienced significant fluctuations, with some parts of the market experiencing sharp declines in prices, while others saw rapid growth.
In December 2024, Melbourne’s property market showed steady improvements in sales activity, particularly in the city’s outer suburbs. This can be attributed to more affordable options compared to the inner city, where prices have become unaffordable for many buyers. The inner suburbs, including Richmond and Fitzroy, have seen slight price corrections, but demand remains high, particularly in properties that offer unique features or have access to public transport.
Regional Victoria has outperformed Melbourne in terms of price growth this year. Geelong and Bendigo, for example, have witnessed significant growth in both house prices and rental yields. This trend reflects broader national movements where regional areas are increasingly seen as desirable for lifestyle and investment purposes.
Queensland (QLD) – Brisbane’s Strong Performance
Queensland’s property market has been one of the standout performers in 2024. Brisbane, the state capital, has benefitted from a combination of interstate migration, strong local demand, and a growing economy. With the continuing rise of remote work, Brisbane’s relatively affordable housing market compared to Sydney and Melbourne has attracted a significant number of buyers from southern states.
The property market in Brisbane has experienced solid growth, with house prices increasing steadily throughout 2024. Inner-city apartments, however, have been slower to recover after the pandemic’s impact, as the demand for inner-city living has decreased due to more flexible work arrangements. Yet, suburban areas like Chermside, Carindale, and Logan have seen exceptional growth.
Further north, regional Queensland has also experienced strong growth, particularly in areas like the Gold Coast, Sunshine Coast, and Cairns. The increase in interstate migration has fueled demand, with many buyers attracted to the lifestyle benefits of coastal living and a lower cost of living compared to southern capital cities.
South Australia (SA) – Adelaide’s Stability
Adelaide has demonstrated one of the most stable property markets in Australia in 2024. The South Australian capital has historically lagged behind other states in terms of growth, but this year it has outperformed expectations. The affordable housing prices in Adelaide have made it an attractive destination for first-time buyers, young families, and retirees seeking to downsize.
In December 2024, Adelaide’s property prices have remained relatively stable, with some growth in the outer suburbs. The city’s low unemployment rate and growing economy have contributed to its housing market’s resilience, and the demand for housing in areas such as Norwood, Unley, and Glenelg remains strong. Furthermore, the city’s vibrant arts scene and affordable lifestyle have positioned it as a prime location for interstate movers, further fueling demand in the housing market.
Western Australia (WA) – Perth’s Recovery
Perth’s property market has undergone a significant recovery in 2024. Following a long period of slow growth, Western Australia’s capital has seen a strong resurgence, with property prices steadily rising, particularly in the luxury market and areas close to the city’s beaches.
In December 2024, Perth’s housing market is benefiting from the mining boom and an influx of international investment. Perth’s property market has seen a shift, with both investors and owner-occupiers flocking to the city for its affordability and growth potential. The inner-city suburbs such as Subiaco and Leederville, as well as the coastal areas like Cottesloe, have experienced notable price increases, as demand for properties in these locations remains high.
Regional Western Australia, particularly areas like Mandurah and Busselton, has also seen increased demand as people move further out of the city in search of more affordable housing and a better quality of life.
Tasmania (TAS) – Hobart’s Unique Market Conditions
Tasmania’s property market, particularly in Hobart, has experienced remarkable growth over the past few years. As of December 2024, the Hobart property market remains one of the tightest in the country. The surge in demand for both lifestyle and investment properties has pushed prices up, especially in the areas surrounding the CBD and on the eastern shore of the city.
The lack of supply in Tasmania’s housing market, particularly in popular areas like Battery Point and Sandy Bay, has led to a significant increase in both sale prices and rental yields. Regional Tasmania, such as Launceston and Burnie, has also experienced steady growth due to increasing interstate migration and more people choosing to live outside the major metropolitan areas.
Northern Territory (NT) – Darwin’s Steady Growth
The property market in Darwin, Northern Territory, has shown consistent but modest growth in 2024. As a smaller market with a heavy reliance on government spending and the resource sector, Darwin’s housing market is somewhat insulated from broader national trends. Despite this, December 2024 data shows that Darwin’s market has experienced steady demand for both residential and investment properties, particularly in areas such as Parap, Nightcliff, and Fannie Bay.
While the city has not experienced the same rapid growth seen in southern states, the market has remained relatively stable, with small price increases observed in the more sought-after locations.
Conclusion
As we head into 2025, the Australian property market shows signs of diversification and continued resilience across different states and regions. While some markets experience steady growth, others are experiencing price corrections or slower recovery. Factors such as interest rates, affordability, migration patterns, and local economic conditions will continue to shape the property landscape in the months ahead. Investors and homebuyers alike will need to remain informed and strategic to navigate these shifting market conditions, and adapting to these changes will be key to success in the coming year.
In conclusion, the Australian property market, while facing challenges, continues to offer opportunities for those who carefully study local conditions and market trends.
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