As we are at the end of 2024, the Australian property market has shown varied performance across different regions. Here’s a summary of how property prices fared in 2024 and what’s expected for 2025:
2024 Performance
- National home values increased by 5.5% over the year
- November 2024 saw a modest 0.1% rise in home values nationally, marking the 22nd consecutive month of growth
- Brisbane experienced significant growth with a 12.1% increase in home prices
- Sydney saw a 3.3% rise, potentially reaching its peak in August
- Melbourne recorded a 2.3% fall in prices over the last 12 months
- Perth led the pack with a remarkable 21% surge in home price
2025 Forecast
According to various predictions:
- National dwelling prices are expected to grow between 2.7% to 5-7% in 2025
- Brisbane: 5-7% increase for houses, 7-9% for apartments
- Sydney: 4-6% rise in home values
- Melbourne: 3-5% increase for houses, up to 2% decrease for apartments
- Perth: 8-10% price growth
- Adelaide: 7-9% rise in prices
Factors influencing the 2025 market include:
- Anticipated interest rate cuts, which could boost buyer confidence
- Ongoing housing supply shortages
- Continued migration and infrastructure improvements
The market is expected to experience a “year of two halves” in 2025, with weaker conditions in the first half followed by stronger growth as interest rates potentially decrease
For potential buyers, 2025 might present opportunities, especially in markets showing signs of cooling. It’s advisable to stay informed about local market trends and consider seeking professional advice to understand your borrowing capacity in this changing landscape.
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