According to CoreLogic’s latest “Best of the Best 2024” report, national home values recorded a -0.3 per cent decline in November, indicating a broader slowdown in market momentum.
Perth emerged as a standout performer with a 21 per cent annual value increase, while Melbourne experienced a -2.3 per cent decline during the same period.
The luxury market continues to dominate in Sydney, with Bellevue Hill leading as the most expensive suburb for houses, boasting a median value of $9,994,537.
At the other end of the spectrum, Norseman in Western Australia offers the most affordable houses with a median value of $80,289, while Laguna Quays in Queensland presents the lowest-priced units at $142,689.
Regional markets have shown particularly strong performance in Western Australia and Queensland, with Beachlands recording a 38.4 per cent annual growth for houses.
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CoreLogic’s research indicates that rental yields remain robust in regional areas, with Collinsville in Queensland achieving the highest house rental yield at 12.6 per cent.
CoreLogic Head of Research, Eliza Owen said the market’s initial strength in 2024 gradually waned due to declining demand, rising levels of advertised supply, and a shifting outlook for inflation and interest rates.
“Beyond the market conditions, the key theme throughout the year was one of variability,” Ms Owen said.
“Even in high growth markets of Adelaide, Brisbane and Perth, there are distinct signs of a cyclical slowdown, with the quarterly pace of gains easing over the course of the year,” she said.
Affordable segments have emerged as the strongest performers, with the bottom quartile of national market values rising 10.3 per cent through the year to November.
“As the wealthy, high-deposit buyer pool may thin out the longer the cash rate sits at 4.35 per cent, low-value markets may lose their appeal as demand pushes previously affordable markets higher,” Ms Owen said.
Looking ahead to 2025, Ms Owen predicts continued pressure on buyer demand early in the year.
“A change in the official cash rate target could then mark an inflection point, increasing demand in the second half of the year,” she said.
“While market conditions are broadly expected to improve off the back of a cash rate reduction in 2025, there will still be considerable diversity in housing market performance.”
