
New research has unveiled significant disparities in Australia’s property market performance, with some regions thriving while others struggle.
The Hotspotting Price Predictor Index for Spring 2024 has identified clear property winners and losers, as well as markets experiencing a “second wind”.
Hotspotting Director Terry Ryder said the best property markets continue to offer affordability and strong fundamentals.
“Brisbane, Adelaide and Perth have been the market leaders for dwelling price growth for the past year or two, and this state of play is set to continue โ with increasing pivots to units โ as well as minor moderations in property price rises,” Mr Ryder said.
Regional markets in Queensland and South Australia are also performing strongly, while regional Western Australia is showing more balanced growth.
At the other end of the spectrum, Tasmania and Melbourne are experiencing sluggish or declining median prices.
Hotspotting General Manager Tim Graham attributed Melbourne’s stagnation partly to negative sentiment surrounding the state’s new land tax.
“It’s clear also that Melbourne is also being impacted by negative sentiment due to its very unpopular new land tax that penalises every investor that owns property in that state,” Mr Graham said.
The report also identified several “second wind” markets that savvy buyers should consider.
“Many real estate consumers are herd animals and pile into property markets when the media tells them a boom is happening, which is what happened in Perth this year when it was actually at, or near, the peak of the current cycle,” Mr Ryder said.
These “second wind” markets include the Sunshine Coast in Queensland, Launceston and Burnie in Tasmania, Dubbo and Orange in New South Wales, and Ballarat and Bendigo in Victoria.
Among the top performers, Brisbane has seen an uplift in sales volumes, particularly in the attached dwelling market.
Adelaide continues to be a national growth leader, with suburbs boasting positive ratings outnumbering those with negative rankings three to one.
Perth’s boom remains strong, although concerns have been raised about east coast investors potentially buying recklessly without due diligence.
On the losing side, Hobart is currently the weakest performer on house price growth among capital cities, with its median house price lower than a year ago.
Regional Tasmania is showing signs of recovery but continues to lag behind other Australian regions in sentiment and performance.
Melbourne’s market continues to stagnate, with median dwelling prices among the most affordable of any capital city despite being Australia’s most populous.
Darwin has shown signs of revival but remains below the levels seen in other capital cities like Perth, Adelaide and Brisbane.
The report also highlighted areas of solid performance, including Sydney’s apartment market and Canberra’s gradual improvement, particularly in unit markets.
As the spring selling season progresses, buyers and investors are advised to consider these market trends and conduct thorough research before making property decisions.