2024 in Review

2025 is already off and racing, so before we get too far into the year let’s look back over how the property market performed over the last twelve months.  

Another year further on from the Covid pandemic, where we saw growth in most of the capital cities and even regional areas, we have now seen the property market return back to its usual fragmented self, with some markets performing exceptionally well and others showing little to no growth. 

2024 certainly proved its resolve amid ongoing economic uncertainty. The key economic challenges Australia faced in 2024 included persistent inflation, a slowdown in household consumption, a robust jobs market with skills shortages and ongoing global economic uncertainties which kept the Reserve Bank of Australia (RBA) in a state of “caution” and rates on hold, despite a lot of speculation and hope for some interest rate relief.   

As such, the key focus on balancing inflation reduction whilst still managing economic growth proved challenging. This heavily impacted Australians with relentless cost of living pressure without any relief from interest rate cuts.  

Considering all of these factors, the property market demonstrated remarkable resilience and strength in most regions.  

A combination of chronic undersupply in a lot of regions, strong population growth and high construction costs combined with labour challenges helped sustain the market, resulting in national property prices continuing to climb in 2024.  

It was really a combination of the ‘smaller’ cities that have traditionally sat in the shadows of Sydney & Melbourne that headlined national growth. In 2024, Perth, Adelaide and Brisbane had serious momentum, emerging as standout performers. 

According to PEXA data, in 2024, a total of 699,080 properties were sold across Australia’s mainland states, representing a 5.1% increase compared to the previous year. QLD was the highest volume state. 

While property prices rose in most regions across the country, growth slowed considerably. November marked 22 consecutive months of national price increases, but at just 0.1% – it was the weakest result since January 2023. 

• Standout Performers: Perth (+21%), Adelaide (+14%), Brisbane (+12.1%) 

• Modest Growth: Sydney (+3.3%), Hobart (+1%), Darwin (+0.9%) 

• Declines: Melbourne (-2.3%), Canberra (-0.1%) 

In the second half of 2024, we also saw a slowdown in rental growth.  

After a prolonged period of rapid rental increases, demand cooled in many markets as a result of a rise in shared housing, intergenerational living, and reduced interstate migration levels.  

The government also introduced some initiatives in 2024 to help aspiring homeowners, such as; 

• Help to Buy Scheme: Shared equity contributions of up to 40% (new homes) or 30% (existing homes). 

• Home Guarantee Scheme: Allowing eligible buyers to purchase with a 5% deposit and no Lenders Mortgage Insurance. 

• and some additional measures included a $300 energy bill rebate and tax cuts that increased some borrowers’ purchasing power. 

However, they are still being widely criticised for their lack of initiative and action to provide more ‘affordable housing’ and also assisting with overall supply. 

There were definitely some shining lights in 2024, and our clients who took action with their strategy will have done exceptionally well with their portfolios. 

This year is shaping up to be another strong year in some key markets, with an anticipated and long-awaited change in interest rates, so consider your overall goal when reviewing your strategy and making moves; and, if you want to know more about what’s in store for property, I’ll be speaking at the Your Future Strategy INSIGHT 2025 conference along with some other great speakers on Friday the 21^st of February. RSVP now as it’s filling up fast, it would be great to see you there!      

Trent Cripps
Director – Property Strategy, Legacy Property Australia
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Trent is our Director of Property Strategy and has been with Legacy Property Australia since the beginning. Skilled in market analysis and investment strategies with a keen eye for emerging trends, Trent excels in identifying outstanding opportunities that help our clients achieve their financial goals.