Property market strong across most of Australia, except Melbourne: PIPA report

The Property Investment Professionals of Australia (PIPA) has released its National Market Update for July 2024, highlighting robust conditions in most major markets, with Melbourne being the notable exception.

PIPA Chair Nicola McDougall said: “Over the past year, double-digit dwelling price growth has been recorded in Perth, Brisbane and Adelaide, while signs have emerged of a resurgence in Sydney and New South Wales more generally.”

Key findings from the report include:

Melbourne’s underperformance: The median dwelling value in Melbourne increased just 1.6% over the past year, with a 0.6% reduction in the most recent quarter.
Rental market challenges: Vacancy rates remain around 1% nationally, with new rental reforms potentially discouraging investment.
New South Wales resurgence: The market is showing strength, particularly in high-end suburbs of Sydney.
Queensland’s strong performance: Robust buyer demand is driving price increases in both established properties and land.
South Australia’s record growth: Adelaide recorded the fastest growth in Australia after Western Australia, with a 14.61% increase over the past year.
Tasmania’s varied market: House prices saw a slight decline, while sales volume increased significantly.
ACT’s gentle rise: Canberra property values increased 0.7% in the last quarter, with strong auction clearance rates.
Western Australia’s hot market: Perth showed a 22% price increase in the past 12 months, driven by supply constraints and strong economic fundamentals.

McDougall expressed concern about the impact of rental reforms, stating: “The myriad new rental reforms being proposed or enacted are doing nothing to encourage existing investors to stay the course nor to motivate potential new entrants into the property investment market.”

The report highlights the diverse nature of Australia’s property markets, with significant variations between states and even within individual cities.