Perth, Brisbane and Adelaide are expected to have the highest increase in housing prices in 2024, with more growth to come in 2025.
ANZ’s Housing Outlook report – Price Growth Diverging – predicts house prices could end the year 7 per cent higher than they started across the three cities, with a further 5 to 6 per cent growth predicted in the near year.
A supply-demand imbalance will likely to continue to be the main driver of house prices in the near-term future, coupled with an increase in investor activity.
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MortgageBroker.com.au chief executive officer Shaun McGowan said in a year marked by varied trends across the Australian housing market, Perth, Brisbane, and Adelaide had emerged as the clear frontrunners in property value increases.
“The growth rates (across the three cities) notably surpass those of larger cities such as Sydney and Melbourne,” he said.
“ANZ’s projection of a 6 to 7 per cent increase in capital cities’ housing prices for 2024 suggests that these three cities are likely experiencing growth rates on the higher end of this range.
“Some analysts even foresee that Brisbane and Perth could exceed these projections, given their unique market conditions and recent performance.
“At the national level, the average home price in Australia is currently $772,730 (according to CoreLogic). This average figure contrasts sharply with Sydney’s high average property price of $1,139,375, highlighting the significant variations in housing markets across the country.”
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Source: ANZ
Mr McGowan said Perth had seen the most dramatic rise in prices nationally, with house values climbing by 19.8 per cent over the past year.
“This growth positions Perth as a standout performer in the current market landscape,” he said.
“Brisbane follows closely with a notable 15.9 per cent increase in house values, while Adelaide has recorded a 13.3 per cent rise.”
In contrast, other capital cities have experienced much slower growth.
Hobart and Darwin have each recorded modest increases of less than 1 per cent, reflecting the more subdued conditions in these markets.
Meanwhile, Melbourne has seen a more restrained growth of just 3.2 per cent.
“Perth’s property market is currently buoyed by a resurgence in the mining sector and strong commodity prices,” Mr McGowan said
“With an average home price of $703,502, Perth stands out for its relative affordability compared to many other capital cities. This affordability, combined with Western Australia’s effective management of the COVID-19 pandemic, has helped sustain steady housing demand and attract both investors and first-home buyers.”
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Source: ANZ
Brisbane, with an average home price of $817,564, has experienced significant growth driven by increased interstate migration.
“Many people from southern states, where housing affordability has become a critical issue, have been drawn to Brisbane,” Mr McGowan said.
“The city’s robust job market and ongoing infrastructure projects, including preparations for the 2032 Olympics, have further boosted and will continue to boost the local property market.”
Adelaide, where the average home price is $734,173, has also seen consistent growth.
Mr McGowan said the city’s appeal lies in its high quality of life.
“Investors have been particularly attracted to Adelaide due to its burgeoning tech and defence sectors,” he said.
“Additionally, the city’s lower density and more spacious properties have become increasingly desirable for those seeking a better work-life balance in the post-pandemic era.”
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