Domain’s Chief of Research and Economics, Dr Nicola Powell, said that despite economic headwinds, the property market has demonstrated remarkable resilience throughout 2024.
“What was expected to be a year of rate cuts became a testament to the strength of demand, and undersupply that’s dominating and continues to push prices up,” Dr Powell said.
Domain forecasts house price growth of 5 to 7 per cent for Brisbane and 7 to 9 per cent for Adelaide in 2025, pushing both cities past the significant million-dollar threshold.
“In 2025, we expect prices to keep rising, though at a slower pace than in 2024, due to affordability pressures and more buyer options, giving Australians greater leverage as the year unfolds,” she said.
Dr Powell said that Australia’s smaller cities have emerged as standout performers in 2024.
“Perth, Adelaide and Brisbane gained serious momentum, emerging as standout performers, traditionally overshadowed by Sydney and Melbourne’s more performative property markets,” she said.
The analysis also revealed shifting buyer preferences, with pools and waterfront properties becoming the most searched features nationally while home office searches declined.
“This suggests a shift in work-from-home trends as more workers return to the office,” Dr Powell said.
Looking ahead, she predicts 2025 will be a year of two distinct phases.
“The first half will be weaker as the dynamics of 2024 carry over, while the second half should see a rebound, with the RBA potentially moving to cut the cash rate, which would serve as a strong catalyst to drawing more buyers back to the market,” she said.
“In 2025, we expect prices to keep rising, though at a slower pace than in 2024, due to affordability pressures and more buyer options, giving Australians greater leverage as the year unfolds.”
