Upgraders become most active home buyers as market shifts

Upgraders have replaced first home buyers as Australia’s most active residential buyer group in the final quarter of 2024, according to a new CBRE survey.

The research, which polled 155 residential valuers nationwide, found unrenovated properties and homes in secondary locations were least popular with buyers.

“In the short-term, until we get meaningful interest rate cuts, I expect upgraders and first home buyers will continue to dominate demand,” CBRE’s Pacific Head of Research Sameer Chopra said.

Half of valuers reported moderate buyer demand in their markets, while 34% indicated strong to very strong demand, led by Adelaide and Perth.

“Melbourne has seen less demand from investors due to tax changes and proposed landlord rental standards. This has fuelled increased investor activity in both Adelaide and Perth,” CBRE’s Residential Valuations National Director Kat Hale said.

The survey showed 55% of valuers expect house value growth next year, down from 78% in Q1 2024, with highest growth predicted in Perth and Adelaide.

For apartments, 38% anticipate value increases, particularly in Brisbane Metro, Perth, and the Gold and Sunshine Coasts.

Two-thirds of valuers expect available housing stock to increase over the next 12 months – the highest result this year – with most supply anticipated in Canberra and Sydney Metro.

Behind upgraders and first home buyers, investors and downsizers remain active, while developers and recent overseas migrants show less market participation.