PropTrack forecasts up to 5% growth in Australian property prices for 2024
By
REA Group has released the PropTrack Property Market Outlook Report June 2024, providing a comprehensive analysis of the Australian residential property market along with projections for the coming year. Key findings from the report suggest a continued rise in property prices, with an expected increase of up to 5% in 2024.
According to the report, Australian property prices have already seen a 2.7% rise from January to May and are up by 5.9% over the financial year to date. The forecast for the 2024-25 financial year indicates further growth of 2% to 5%. Perth is set to lead this growth with an anticipated increase of 8% to 11%, having already seen an 18.9% rise over the current financial year.
Other major cities are also expected to see significant price growth. Brisbane’s home prices have increased by 12.2%, Sydney’s by 5.8%, and Melbourne’s by 0.8% over the current financial year. These cities are projected to experience further price increases of between 3% and 6% in the upcoming financial year. Adelaide is expected to see a 5% to 8% rise in home prices following a 12.9% surge this year.
Cameron Kusher, Director of Economic Research at PropTrack and author of the report, commented on the resilience of the property market. “Buyer demand remains strong despite high-interest rates and a falling borrowing capacity, leading property prices to rise at a faster rate than expected,” he said. The introduction of Stage 3 tax cuts and potential interest rate reductions next year are expected to bolster this demand further.
The report also highlights a national increase in sales volumes, up 13.9% from January to May 2024 compared to the same period last year. Despite an increase in stock available for sale in Sydney, Melbourne, and Canberra, buyer interest remains high, as indicated by a drop in the median time a property listing remains on the market—from 43 days last year to 38 days in May 2024.
For more detailed insights into the Australian property market and to view the full report, visit REA Group’s Insights page.