According to the CoreLogic Home Value Index (HVI), Sydney (-0.6%), Melbourne (-0.7%), Hobart (-0.5%) and Canberra (-0.5%) all closed out 2024 with a drop in property prices.
Prices in Brisbane, Perth and Adelaide - the three major drivers of the extended growth period over the past couple of years - are still going up, but all at a slower rate than earlier in the year.
CoreLogic Research Director Tim Lawless said this slowdown is unsurprising, a result of the "housing market catching up with the reality of market dynamics."
"Growth in housing values has been consistently weakening through the second half of the year as affordability constraints weighed on buyer demand and advertised supply levels trended higher," he said.
The national median dwelling price is now $815,000, down 0.1% from the all time high in October, but still 38.1% higher than the start of Covid.
Adelaide to be new investor darling?
Anyone that follows the property market is probably aware by now of the price surge in Western Australia.
Since the start of 2020, the median dwelling price in Perth has risen 77%, more than anywhere else in the nation, while regional Western Australia hasn't been far behind with 74.2% growth.
An average house in Perth now costs about $845,000, 12.5% more expensive than this time last year.
After 22.7% growth in 2024 Perth units are up to a median of $589,000 having overtaken Adelaide, Canberra and Hobart over the year.
However, this latest read points towards a changing of the guard, with Adelaide and Regional South Australia now looking to be the fastest growing markets.
Dwelling prices in Adelaide rose 2.1% over the three months to December compared to 1.9% in Perth - the first time since September last year Perth hasn't led the way for quarterly growth.
It's a similar story elsewhere in the respective states with regional South Australia growing 3.1% compared to 2.5% in regional WA.
Many analysts have pointed to undersupply of available properties as the best explanation for why property values have gone up over the past couple of years despite interest rate rises, and Mr Lawless says stock on market helps explain why Adelaide seems to have overtaken Perth.
"Extremely low advertised stock levels have continued to support strong growth conditions across Adelaide with stock levels tracking -34% below the previous five year average in mid-December," he explained.
"Perth on the other hand has seen a clear lift in advertised supply, which has provided buyers with more choice and less urgency, supporting a sharper slowdown in value growth relative to Adelaide."
Regions continue growth
The year past saw another shift in growth dynamics - price growth in the capital cities was lower than that out of it.
Over 2024 the combined capital city average property price rose 4.5% while the combined regional average went up 6% according to the HVI.
That's a stark contrast from 2023, when the capitals rose 9.3% compared to just 4.4% in the regions.
Given how expensive property has become in Sydney, Melbourne and Brisbane, Aussies are seemingly turning to the comparatively more affordable surrounding regional areas - Newcastle over Sydney, the Sunshine Coast over Brisbane for example.
This is backed up by the Regional Movers Index from CommBank and the Regional Australia Institute, which suggests capital to regional migration is reapproaching the all time highs of the Covid era.
Top growing regions in 2024
| SA4 | Median dwelling value (December '24) | Annual change | |
|---|---|---|---|
| Mid West | Outback (South WA) | $442,000 | 29.9% |
| Townsville | Townsville (QLD) | $553,000 | 27.2% |
| Gladstone | Central QLD | $533,000 | 27.1% |
| Darling Downs East | Darling Downs (QLD) | $448,000 | 21.2% |
| Mackay | Mackay-Isaac-Whitsunday (QLD) | $574,000 | 20.5% |
Picture by Maximillian Conacher on Unsplash
