Property prices are on the rise across the county, however, Melbourne continues to lag behind other major capitals.
According to the latest Property Investment Professionals of Australia (PIPA) National Market Update, the median dwelling value in Melbourne increased just 1.6 per cent over the past year according to CoreLogic, but fell 0.6 per cent over the most recent quarter.
PIPA Chair, Nicola McDougall, said Melbourne continues to be the talk of the property town – but not in a good way.
“The anti-market sentiment about Melbourne has resulted in the city not only becoming a buyers’ market but one where investors are either selling up or giving it a very wide berth,” Ms McDougall said.
“This is predominantly due to its plethora of anti-investor rental reforms as well its new land tax regime that is set to cost investors billions of dollars over the years ahead.
“However, while the negative market narrative is prevailing at present, it is highly unlikely that our most populous city does not continue to offer sound property investment potential.
“Indeed, now is the perfect time to invest in Melbourne if can look past the current market negativity.”
Across the rest of the country, double-digit dwelling price growth has been recorded in Perth, Brisbane and Adelaide, while signs have emerged of a resurgence in Sydney and NSW more generally.
Sydney
Hotspotting Director, Terry Ryder, said the market resurgence in parts of Sydney and Regional NSW began last year, with solid activity being reported in a number of locations.
“In fact, we believe the top supercharged suburb in the nation is currently Surry Hills in Sydney City, which is indicative of several key trends in Australian real estate,” Mr Ryder said.
“Surry Hills is a market dominated by apartments, where demand has been rising in keeping with an emerging national phenomenon.
“Overall, the top end is undoubtedly leading the Sydney market while the cheaper areas are struggling to maintain their previously high sales levels.”
Queensland
Propell Property Managing Director, Michael Pell, said market conditions across Queensland remain extremely strong.
“We’re seeing prices continually increase – whether that’s established properties or land prices – because there is very robust buyer demand,” Mr Pell said.
“While property prices have been rising in Queensland over the past year, they still remain much more affordable than Sydney and Regional NSW, which is why we are seeing so much more enquiry from interstate property buyers.
“The Queensland rental market also remains severely undersupplied as well, with the latest vacancy rate research showing record low levels of availability.”
South Australia
Elam Property Buyer Advocate, Jess Elam, said Adelaide has set a new median home price record, rising 14.61 per cent over the past year, the quickest growth in Australia after Western Australia.
“South Australia is continuing to experience increased interstate and overseas migration,” Ms Elam said.
“This influx of new residents continues to add to the positive momentum in the housing market.”
Tasmania
Buyers Agents Tasmania Director, Sam Spilsbury, said Tasmania’s housing market experienced varied movements in the past year, reflecting dynamic shifts in median sale prices and transaction volumes across different property types.
“The moving annual median sale price for houses saw a slight decline of 0.4 per cent year over-year to $607,635 as at June 2024,” Mr Spilsbury said.
“Despite this, house sales surged by 14.6 per cent, indicating robust activity in this segment of the market.
“In contrast, other dwellings in Tasmania saw a more significant decline in median sale price, dropping by 5.0 per cent to $478,000.
“However, sales for other dwellings increased significantly by 73.6 per cent, highlighting shifting preferences or investment patterns.”
ACT
Capital Buyers Agency Buyers’ Agent, Claire Corby, said in Canberra, property values have been on the rise with a gentle 0.7 per cent quarterly rise to May, according to CoreLogic, mainly due to a shortage of quality homes coupled with consistent buyer demand.
“This has been disproportionately skewed to the top end, with scarcity of listings in blue-chip suburbs driving price growth for the up-sizer market,” Ms Corby said.
“Anecdotally, well presented homes with “nothing to do” are attracting a competitive crowd at auction, eager for a solution, whereas the selloff of subpar investor stock that is often in need of work fails to excite a buyer pool who are feeling the high cost of borrowing.”
Western Australia
Dr Kevin Hoang, Senior Economist, Head of Property Research, inSynergy Advisory said Perth has emerged as one of the best-performing property markets in Australia, showing all the signs of a hot market.
“Prices have increased by 22 per cent in the past 12 months and 60 per cent over the past four years,” Dr Hoang said.
“Most notably, the market is moving so fast that almost all sales are advertised without a price guide, resulting in sale prices tens of thousands above the reserve.
“This is likely driven by a fear of missing out (FOMO) in a bid to capitalise on further price growth.
“The main drivers of the current surge are supply constraints, affordability, and a strong economy.”
