Is Australia’s Property Market Is Slowing and What It Means for You?
MPG Weekly Real Estate Market Update with Leigh Martinuzzi
As we near the end of 2024, the Australian property market is showing signs of slowing momentum. While capital city dwelling values are still up 5.8% year-on-year, the pace of growth is tapering. In fact, some cities are seeing negative trends emerge, highlighting the varying performance across different markets and segments. This week’s figures reveal a more cautious property market, shaped by economic factors, buyer behaviour, and regional dynamics.
Auction activity remains subdued, with clearance rates holding below 70% for 11 consecutive weeks—a strong signal that buyers are becoming more hesitant. Last week, just over 2,300 homes went under the hammer, a significant decline from the same period last year. Brisbane and Perth, however, are notable exceptions, continuing to outperform. Brisbane’s auction clearance rate hit 66%, while Perth’s asking prices soared by 26% over the past year. By contrast, Melbourne and Canberra have seen a modest uptick in asking prices of just 1-2%, reflecting more subdued market conditions.
Westpac Bank recently revised its prediction for the next RBA cash rate cut, pushing it back from February 2025 to May 2025. While inflation continues to ease, and borrowing conditions are expected to improve in the coming months, this timeline suggests a longer wait for mortgage relief. The delay will likely keep buyers cautious and limit their borrowing power until the anticipated rate cuts materialise.
Interestingly, the value of property asking prices has emerged as a critical leading indicator for housing market trends. As Michael Yardney notes, the sharp rise in asking prices across several markets—Brisbane up 16.9% and Perth leading at 26%—is a clear sign of growing seller confidence. These increases in asking prices often foreshadow continued price growth. Once interest rates are cut, we can expect an influx of buyer activity, adding further upward pressure to housing values.
What’s striking is how uneven the market is. While some capitals like Sydney and Brisbane are seeing sustained demand and growth, others, such as Hobart and Canberra, are showing declines in dwelling values year-on-year. Even within cities, performance varies significantly. Premium properties and highly sought-after suburbs are holding their value or even growing, while less competitive segments are softening.
For sellers, this mixed market presents a unique opportunity. In areas where demand remains strong, attractive presentation and realistic pricing strategies will continue to deliver strong results. On the Sunshine Coast, for example, buyer interest is still evident, particularly among interstate movers and those seeking lifestyle-driven relocations. For buyers, this cautious market provides a chance to secure properties with less competition, though borrowing constraints remain a challenge.
Asking prices rising across most capitals indicate that sellers are still confident about achieving strong results. However, with the market slowing and affordability pressures persisting, it’s clear that careful planning and informed decision-making are crucial for both buyers and sellers.
Looking ahead, the interplay between cautious buyer activity, a slowing market, and the eventual easing of interest rates will define the property landscape. If you’d like to discuss how these trends might impact your next property decision or explore opportunities to buy or sell, feel free to reach out. We’re here to help you navigate this complex market and achieve your property goals.
Stay tuned for more updates, and don’t forget to check out my latest article on the pros and cons of selling over the Christmas period—some findings might surprise you! LINK HERE
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