Property markets show resilience as Perth, Adelaide and Brisbane lead growth

Australian property markets have maintained strong performance despite rising interest rates, with Perth, Adelaide and Brisbane recording double-digit growth in 2024, according to the latest Property Investment Professionals of Australia (PIPA) National Market Update.

PIPA chair Nicola McDougall said the market showed resilience despite declining investor confidence.

“The impact of anti-investor rental reforms in Victoria and its new ‘temporary’ land tax that lasts for 10 years continues to drag down property prices in that state as well as kybosh investor demand,” she said.

Perth emerged as a standout performer, with dwelling prices rising 24.1 per cent annually to reach a median of $797,184, surpassing Melbourne to become Australia’s fourth most expensive capital city.

Adelaide’s median house price climbed to $790,789, representing a 4 per cent year-on-year increase, while Brisbane showed strong growth across municipalities.

Sydney maintained record-high dwelling prices despite recording its first monthly decline since January 2023.

The Victorian market remained sluggish, with Melbourne’s dwelling prices falling 1.1 per cent during the September quarter and dropping 1.4 per cent over the past 12 months.

McDougall noted that while inflation was trending downward, interest rate cuts remained uncertain.

“The only thing that is certain is that it is clear that interest rate cuts are on the horizon, which will be welcome news to all current and prospective home buyers and investors,” she said.

Investor sentiment has declined significantly, with only 46 per cent believing it’s a good time to invest in residential property, down from 56 per cent in 2023 and 62 per cent in 2021.