The Australian property market has experienced notable shifts in 2024, with changes driven by a mix of higher interest rates, evolving buyer behaviour, and a changing economic landscape. Here are five key ways the property market has changed this year according to PropTrack.
1. Slower Price Growth Across the Country
While property prices continued to rise in most parts of the country throughout 2024, the pace of growth has significantly slowed. Earlier in the year, the market saw rapid increases, but a combination of poor affordability, a surge in stock for sale, and sustained high interest rates has moderated price growth. Prices remain at record levels in many capital cities, but the aggressive growth of previous years has come to a halt.
2. Rental Market Stabilises
The rental market, which had been facing pressure for several years, saw some relief in 2024. While rental prices had been climbing at a rapid pace, the growth rate began to slow in the latter half of the year. Increased vacancies and a rise in rental listings, largely due to higher investor activity, helped ease some of the tight conditions. However, despite the improvements, rental affordability remains a challenge for many renters across the country.
3. Reshuffling of Capital City Rankings
There has been a shift in the rankings of Australia’s most expensive cities. Traditionally, Sydney and Melbourne dominated the top spots, but in 2024, Brisbane climbed the ranks to become the second most expensive city, surpassing Melbourne and Canberra. Meanwhile, Melbourne’s market has struggled, with prices declining for much of the year, causing the city to drop to fifth place.
4. Increase in Stock for Sale
In 2024, buyers in capital cities were met with an increase in the number of properties listed for sale. The spring months saw a surge in new listings, which provided more choices for prospective buyers. This influx of properties, coupled with affordability constraints, has helped moderate price growth and shifted the balance of power towards buyers in many markets.
5. Interest Rates and Affordability Impact Confidence
Interest rates remained high throughout most of 2024, which continued to challenge property buyers. However, the RBA’s current stance on rates suggests that cuts are not expected until at least mid-2025. This uncertainty about future rate movements, combined with poor affordability, has slowed down the pace of home price growth. As interest rates begin to ease, particularly in the second half of 2025, it’s expected to boost market confidence, making property more accessible for buyers.
These five changes reflect the ongoing adjustments in the Australian property market. With shifting dynamics, both buyers and investors will need to stay informed and adapt to these evolving conditions as we move toward 2025.
