Are you a home buyer or property investor who wants to know the latest Australian property statistics and facts? Then, this guide is for you.
We have collected data from CoreLogic, which shares interesting updates on Australian properties on the market. Take advantage of these property statistics and manage each investment risk effectively.
Key Takeaways
✔ Housing values for Australian homes are estimated to have reached $10.6 trillion last April 2024. |
✔ For the past three months, home prices across the country have increased by 0.6% monthly, with a total of 1.8% growth. |
✔ The prices of lower-priced houses went up to 3%, which is more than double the price hike of higher-priced homes at 1.1%. We can see in these property statistics that affordable homes are seeing a quicker price hike. |
✔ Perth continues to be the top performer among capital cities, with capital growth of 6.0% from February to April and 21.1% over the past year. |
Australian Property Forecasts and Statistics You Should Know
In the dynamic world of Australian real estate, observing the property forecasts of last year come to fruition in 2024 is nothing short of interesting. Discover valuable property statistics and insights that can assist you in your investment planning.
1. The Housing Values Trend in Major Capital Cities
Despite a challenging period marked by a series of rate hikes, the Australian property market has demonstrated resilience. A CoreLogic Australia analysis comparing the market’s performance two years before and after the rate hike cycle reveals that home values across the nation have risen by 2.8% since April 2022.
This growth is modest when contrasted with the substantial 31.7% increase observed in the initial two years. In particular, Melbourne is experiencing a downturn, attracting fewer buyers in the housing market.
The May 2024 data reveals a decline of -4.02% in Melbourne’s property values compared to its previous peak in March 2022.
MEDIAN PRICES IN MELBOURNE
Property | Median Price | Δ MoM | Δ QoQ | Δ Annual |
All Dwellings | $783,261 | -0.1% | 0.0% | 2.8% |
Capital City Houses | $941,698 | -0.2% | -0.3% | 3.0% |
Capital City Units | $$613,023 | 0.1% | 0.4% | 2.5% |
Regional Dwellings | $570,153 | 0.0% | -0.1% | 0.6% |
Source: CoreLogic, 1st May 2024
- Growth among households in Perth, Brisbane, and Adelaide shows higher than 1%. According to CoreLogic, the present market dynamics highlight Adelaide and Perth as the quickest choices for 2024.
- Based on data from stock shares, the sales volume is up by at least 25%. This is a growth from a historical average of five years.
- Lower interest rates can encourage new residential dwellings. Domain estimates that Sydney will have 7% to 9% price growth. Adelaide and Brisbane property statistics forecast is at 7% to 8%.
2. First Home Buying Decreased as Prices Went Up by 1.57%
The first home buyers (FHBs) in Australia continued to go down as prices went up by 1.57%. As for this year, the real estate price sits at 6.79% above March 2023 levels.
Home price growth by GCCSA for dwellings
Region | Median Growth (%) | Annual Growth (%) | Median Growth (%) |
National | 0.34 | 6.79 | $768,000 |
Capital Cities | 0.4 | 7.64 | $832,000 |
Regional Areas | 0.19 | 4.67 | $630,000 |
Sydney | 0.4 | 8.11 | $1,069,000 |
Rest of NSW | 0.2 | 3.44 | $715,000 |
Melbourne | 0.27 | 1.71 | $802,000 |
Rest of Victoria | -0.35 | -1.19 | $584,000 |
Brisbane | -0.41 | 12.9 | $801,000 |
Rest of Queensland | 0.49 | 10.18 | $647,000 |
Adelaide | 0.31 | 13.47 | $723,000 |
Rest of SA | 0.64 | 12.81 | $439,000 |
Perth | 0.99 | 18.62 | $660,000 |
Rest of WA | 0.35 | 10.01 | $496,000 |
Hobart | -0.03 | -1.65 | $662,000 |
Rest of Tas. | 0.09 | 1.02 | $501,000 |
Darwin | 0.03 | -0.64 | $482,000 |
Rest of NT | 0.03 | -2.93 | $424,000 |
ACT | 0.67 | 2.22 | $827,000 |
Source: Proptrack. The data represents the values of dwellings (houses and units combined). ABS’ GCCSA standards define the regions shown.
- A NAB survey of residential dwellings shows that new house customers have declined by 30.3% in the past eight years.
- Resident owner-occupier’s market share rose to 41.8% after 11 years. Credits go to local investors, which also went up by 16.5%.
- Victoria and New South Wales have more foreign buyers, with the latest annual data indicating a 10.1% growth.
3. House Capital Growth Has Increased, But Demands Are Higher
Despite the increased real estate listings, the supply of Australian dwellings is less than the demand for future exclusive owners, which increases the land and property median prices.
Since the demand is high, the price increased by 0.34% in March 2024. We are starting to see the 2024 CoreLogic forecast of a 5% to 7% surge in housing units.
The pressure is from a higher volume of residential space to rent or own properties. CoreLogic also predicts that 2024 is a split of a weaker first half and a stronger second half.
4. Property Data Reveals Price Basis
- Rate of Interest: Property markets indicate that the value of homes is linked to the prevailing interest rate, with data from the past year providing additional relevant insights.
During this period, there were higher interest rates noted alongside increased growth in housing property prices.
The Commonwealth Bank was Australia’s leading lender in the banking business. Expectations point to the Federal Reserve initiating interest rate cuts in the second quarter of the upcoming year, potentially amounting to six cuts of 25 basis points each, totalling 150 basis points. Projections also indicate a continuation of interest rate reductions into 2025, with at least four additional cuts of 25 basis points each.
The number of interest rate cuts affects the borrower’s ability to make a home purchase, with a particular focus on the ratio of personal debt to monthly income. The first cash rate cut for three major Australian banks occurred in November.
- Investor Confidence: Property data highlights that prices fluctuate based on the confidence of the prospective buyer in their purchase. Current and future financial capacity significantly influences key purchasing decisions.
Homeownership rates experienced a decline last year, with this attributed to socio-political and economic concerns.
Over the 12 months up to March 2024, the inflation rate increased to 3.5%, according to the Consumer Price Index (CPI). Despite this, government schemes favouring both buyers and sellers have eased the effect of inflation on housing prices.
- Demand and Supply: The housing supply also influences prices in the short term. Additional insights from a property team indicate a population increase in 2023, prompting the development of more residential dwellings to meet this demand. Consequently, rental vacancy rates are lower, contributing to the rise in housing prices.
5. Market Forecast for Capital Cities
Australia’s capital cities are on the rise for home ownership and investment. The outlook for buying homes or investment properties in Australia’s capital cities is looking positive.
Each city offers its own special experience when it comes to its housing markets. Whether you’re looking for a place to call home or a property to invest in, these cities are exciting places to explore your options. See the numbers below to know why.
- Melbourne: Melbourne had the highest housing values last year at 1.71% year-on-year. The price rise is the strongest since June 2022 according to Property Update.
Despite property statistics being portrayed positively, March 2022 data presents a lower-than-peak performance at 3.35%. Sydney and Brisbane did better, while Canberra and Hobart are behind Melbourne.
There is a jump from January 2023 at 2.30%. Active home buyers are present, but there is a shortage of available units.
- Sydney: Last April brought forth a higher performance at 0.4% and the increase from the past year is 8.7%. This growth is attributed to an influx of foreign investors and insufficient houses for rent.
The increase in residential dwellings has led to price inflation. Although prices in early 2024 were weaker, they have been on the rise since April. Prices are higher for A-grade residences in desirable places. Apartments for families remain lower despite the demand.
Buyers are down for B-grade housing units. C-grade residential dwellings are the least preferred to own.
- Brisbane: Properties in Brisbane grew the most in value, with the latest data showing that housing prices have increased by 12.90% since March 2023.
According to the Brisbane Market, the city’s property prices are now up13.1% since January of 2023. It might be worth investing in Brisbane based on this trend.
Prices exceed the past highest values and are forecast to grow by 8.0% when 2024 ends. This is a positive development, as the expected boom has doubled yearly since 2010.
6. Commercial Property Market
- Property Market Size: The Mordor Intelligence chart says that the current Australian commercial market size is USD34.07B. Current commercially reasonable efforts can make it rise to USD 51.14B in 2029.
- Retail to Boost Capital Growth: The property statistics for the third quarter of 2023 demonstrate stability in retail capital growth across Australia. Rent for the same period experienced a slight increase.
The sole and exclusive owners of successful retail businesses established connections with commercial real estate landlords. The leasing opportunities in the retail space have proven to be favourable for businesses.
Businesses are expanding their physical presence across various properties, with Adelaide seeing a growth of retail leasing to include Louis Vuitton and numerous other well-known brands in tourism and fashion.
Retail rents remained stable in the third quarter of 2023. Large format retail (LFR) spaces saw the highest performance, with rents reaching USD 148.77 per square meter, reflecting a 2.1% increase. Early Settler in Adelaide stands as the largest tenant, valued at USD 7.73 million.
- Mixed Office Market: Prime-grade properties equivalent to 23,700 square metres in Adelaide performed the strongest. In the fourth quarter of 2023, the completed office space by Walker Corporation amounted to 40,000 square metres.
Property statistics show a 1.6% growth in rent and a total of 5.6% by the end of 2023. Investors continue to show interest in ongoing developments.
7. Industrial Property Data
Australia’s industrial property data shows an increase in the past three years. Sydney, Melbourne, and Brisbane are relied on for best performance. We offer insights into rental growth and a global outlook on the market.
- Ongoing Rental Growth: The increase in industrial property rent can influence tenant manageability. While most industrial space owners allocate up to 10% of their budget to rent, this figure can rise to 15% in Sydney. Larger businesses may occupy more extensive spaces with higher industrial rent costs.
- At Par Globally: Capital cities in Australia have industrial space rent expenses at similar levels to the rest of the world. According to Knight Frank’s Australian Horizon Report 2024, rents have increased in recent years.
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