Australian Property Market Outlook for May 2024
Table of Contents
The Australian property market has experienced significant growth in the month of May 2024. The annual capital city change in house and unit values has shown positive results, with dwelling sales increasing by 5.2% compared to the previous year. However, these values are 2.4% lower than the five-year average for the region. House sales have grown by 2.6%, while unit sales have seen a substantial increase of 11.7%.
Market Performance
The national housing market has continued its price growth acceleration, reaching new market highs in May. This upward trend has persisted for sixteen consecutive months, with a further 0.8% increase recorded in May. This marks the largest monthly gain since October 2023. Quarterly growth remains sustainable at 1.9%, slightly surpassing the growth rate from the same period last year (1.8%).
Perth, Adelaide, and Brisbane are leading the pace of growth in the housing market. Perth values have increased by 2.0% in May, closely followed by Adelaide with a growth rate of 1.8%, and Brisbane with a 1.4% increase.
Market Conditions
Market conditions have produced diverse results, with each capital city and rest-of-state regions recording an increase in property values at varying rates. The only exceptions to this trend are Hobart and Darwin, where the market has subtly eased with a decrease of 0.5% and 0.3% respectively. Regional Victoria and Tasmania have also experienced a slight easing of 0.2%.
Market Outlook
Looking ahead, it is expected that the Australian property market will continue to experience growth. The current mismatch between supply and demand is a driving factor in this trend, with dwelling values rising across most areas and housing types. Some markets, particularly those affected by supply conditions, have seen accelerated growth.
Housing demand and supply are projected to eventually balance out as population growth slows and construction activity increases over time. The key factor influencing property markets moving forward is interest rates. The Reserve Bank of Australia (RBA) has noted that affordability constraints and high construction costs will continue to impact dwelling investments in 2025 and 2026. However, they expect dwelling investment growth to pick up around the middle of next year.
Property Market Statistics
Here are some key statistics related to the Australian property market:
- Listings for houses have decreased by 1.2%, while listings for units have increased by 6.9% nationally.
- The average time on the market for houses is 29 days, and for units, it is also 29 days.
- Vendor discounts for houses are at -3.9%, while units have a vendor discount of -3.2%.
- The median value of houses nationally is $848,383, and for units, it is $649,995.
Hottest Suburbs in Australia
Here are the top ten suburbs in Australia with the highest annual change in property values:
- Armadale (WA) – 32.1%
- Kwinana (WA) – 31.0%
- Gosnells (WA) – 29.7%
- Rockingham (WA) – 27.9%
- Mandurah (WA) – 26.2%
- Serpentine – Jarrahdale (WA) – 25.9%
- Cockburn (WA) – 25.9%
- Wanneroo (WA) – 25.7%
- Canning (WA) – 24.6%
- Springwood – Kingston (QLD) – 24.2%
Final Outlook
The outlook for the Australian property market remains positive, with continued growth expected. The supply and demand imbalance is a significant driver of this growth, and it is supported by rising dwelling values across most areas and housing types. Some markets experiencing supply constraints have seen accelerated growth.
It is anticipated that housing demand and supply will eventually stabilize as population growth slows and construction activity increases over time. The key factor influencing property markets in the future will be interest rates. The RBA expects affordability constraints and high construction costs to impact dwelling investments in the coming years. However, they predict that dwelling investment growth will pick up around the middle of next year.
If you are considering buying a home or investing in property, it is recommended to obtain a state or suburb-specific property report to assist in your decision-making process. You can contact us at (02) 9058 7404 to receive a comprehensive report tailored to your needs.
Disclaimer: The information provided in this publication is sourced from multiple reliable sources as of the end of May 2024. It is intended for general purposes only and does not take into account individual objectives, financial situations, or needs. Before acting on this information, it is advisable to consider its appropriateness for your circumstances. Seek independent legal, property, financial, and taxation advice before making any decisions based on the information provided.
