Australian Property Market -The Winners and Losers of 2024 

A Year in Review and Emerging Trends

The past 12 months have showcased a dynamic Australian property market, reflecting shifts in values, sales volumes, and rental trends. There have been winners and losers. Here’s a concise breakdown of the year’s highlights and emerging trends as we close 2024.

City and State Performance

Perth, WA

• Performance: Perth was the standout performer with a 21% annual growth in dwelling values, reaching record highs. Strong economic activity and population growth drove demand.
• Rental Market: Rent growth remained robust, with yields maintaining investor interest.
• Outlook: Continued demand is expected, though rising listings could temper growth.

Adelaide, SA

• Performance: Adelaide followed closely with a 14% annual rise, also achieving record highs. Its relative affordability and steady migration supported its market resilience.
• Rental Market: The rental market saw consistent growth, and Adelaide remains attractive for both investors and owner-occupiers.
• Outlook: Further growth is anticipated, albeit at a slower pace.

Brisbane, QLD

• Performance: Brisbane experienced a 12.1% annual increase, marking strong demand and maintaining its appeal as an investor hotspot.
• Rental Market: Demand in the rental sector kept yields attractive despite a slight easing in rental growth.
• Outlook: Continued population growth and infrastructure developments support future demand.

Sydney, NSW

• Performance: Sydney’s dwelling values declined by 0.5% over the quarter, leaving values just below their August 2024 peak. Annual growth was a modest 3.3%.
• Rental Market: Rental growth slowed, but yields held steady due to strong demand for rental properties.
• Outlook: High listings and affordability constraints may moderate recovery.

Melbourne, VIC

• Performance: Melbourne struggled with a 2.3% annual decline, with values now 5.5% below their March 2022 peak. Market activity remained subdued.
• Rental Market: Weak rental growth compounded market softness, although yields showed slight improvement.
• Outlook: Recovery hinges on affordability improvements and economic conditions.

Hobart, TAS

• Performance: Hobart recorded a minor annual decline (-0.1%), with values 12.1% below their March 2022 peak, marking the end of its post-pandemic boom.
• Rental Market: Despite value declines, rental yields improved, supporting investor interest.
• Outlook: Stabilisation is likely as market corrections complete.

Darwin, NT

• Performance: Darwin’s market showed modest annual growth (0.9%) but remains 7.4% below its 2014 peak.
• Rental Market: High yields continue to attract investors, although growth is subdued.
• Outlook: Affordability and infrastructure projects may attract more activity.

Canberra, ACT

• Performance: Canberra’s values declined by 0.1% annually and remain 6.5% below their May 2022 peak. Quarterly trends show a softening market.
• Rental Market: Rents saw slight growth, with yields trending higher compared to prior years.
• Outlook: Stabilisation expected as market conditions align with broader economic trends.

Key Trends Across Cities

1. Listings and Sales: Perth, Adelaide, and Brisbane saw strong listing activity driving higher total sales, while Sydney and Melbourne lagged with lower clearance rates and subdued buyer interest.
2. Rental Markets: Regional areas generally outperformed capitals in rental growth, with stronger demand pushing yields higher outside of Sydney and Melbourne.
3. Economic Drivers: Markets with robust local economies and affordability, such as Perth and Adelaide, significantly outpaced larger cities like Sydney and Melbourne, which faced affordability constraints.

Looking Ahead to 2025

City-specific dynamics will dominate 2025, with regions like Perth and Brisbane poised for sustained growth, while markets like Melbourne and Hobart may continue their correction. Strategic planning will be critical for investors and buyers navigating this diverse and evolving property landscape.

As we navigate the complexities of Australia’s diverse property market, making informed investment decisions has never been more crucial. Whether you’re drawn to the booming growth in Perth and Adelaide, the steady resilience of Brisbane, or the potential recovery opportunities in Sydney and Melbourne, a strategic approach is key to maximising your returns.

With over 20 years of experience in property investment and a deep understanding of local market dynamics, I’m here to help you guide your clients. Let me help you identify the right opportunities to achieve you and your clients’ financial goals and build wealth. Contact me, Matt Ivers, today to explore how we can craft a tailored investment pathway for your success.