Charts Explanation for Australia 2024 Property Market

You’ll be glad to know that the chief economist at REA Group’s PropTrack has come up with a review of 2024 with the help of charts that showcase the performance of the residential property market. Eleanor said that the 2024 market upsurge in the prices of residential property. Interestingly, the score was lower by the end of this year.

She added that surge in stock for sale and high interest rate environment led to the downfall of price growth. Even rental prices have also risen and fortunately the tough condition has started turning into ease with the pace of rental prices growth slowering.

Capital City Markets

Eleanor mentioned that the capital cities were the highlight in the middle of 2024 due to their property price performance. On PropTracks the prices for Perth were +18.74% and Adelaide were +14.64% followed by Brisbane with +12.56%.

She further added that the prices of Melbourne have fallen for the past eight months in addition to lowering of price by 1.63% last year. According to Mr Creagh, the result of this growth is indicating towards the change in ranking of Australia’s most expensive cities. As a result, Melbourne is now the 5th most expensive capital city and Brisbane is on the second rank.

Now that the home growth has lowered by the end of 2024, Eleanor says that “buyers have been active and national sales volume in the 48 weeks of 2024 to date have well outpaced (+9.3%) the same period to date in 2023”.

Population Growth

Eleanor has also mentioned that the resilience in the housing market is because of the strength in the housing demand. This has happened because of population growth and Eleanor has also shed light on the increase in net migration to Australia.

It has been also mentioned that “Smaller household sizes, tight rental markets, resilient labour market conditions, and wage growth have also played a crucial role in bolstering housing demand” while the “home equity gains of recent years have incentivised upgrade activity”.

Rents

It has been mentioned that the conditions in the rental market have started improving and the pace of the rental price growth was slow throughout the year as per the chief economist of PropTrack.

However, Eleanor has pointed out that rental markets are still high and will face challenges due to poor rental affordability after an increase in rental prices.

Prediction for 2025

Eleanor has stated that the inflation will be lowered in 2024 but it’s not enough to change the RBA’s stance on policy. She has a firm belief that the central bank is unlikely to cut rates until May 2025. She also believes that national home prices will also keep increasing.

Adding to this, she said “Once interest rates fall next year, affordability will ease, bolstering confidence among potential buyers”. Furthermore, “As interest rates lower in the second half of 2025, demand may reboot, and prices are likely to regain traction supported by favourable outlook on interest rates and inflation”.