Nationwide, 528,000 dwellings were sold in the 12 months to November, representing an 8 per cent increase from the previous year and a 6 per cent growth from the previous five-year average.
Sydney’s eastern suburbs grabbed seven spots on the top 10 sales list, with Point Piper recording the highest sale of the year in March, with a $51,500,000 sale.
CoreLogic head of research, Eliza Owen, said despite the 2024 market having stronger “out of the gate” conditions, it “gradually waned” due to lower buyer demand, higher supply, and growing inflation and interest rates.
“Beyond the market conditions, the key theme throughout the year was one of variability,” she said.
Data from the national property analytics firm showed that two regional markets topped the national rankings for value growth, with Beachlands in Western Australia recording a 38.4 per cent increase in house values over the year, while Dolphin Heads in Queensland saw the largest rise in unit values with a 52.8 per cent growth.
Across the capital cities, Perth dominated the housing market, taking out all the 10 spots for the highest growth in house values in the last 12 months, with all the suburbs in greater areas scoring a 30 per cent or above growth rate.
For unit markets, Perth took the first two spots on the list with Armadale and Dudley Park, which showed 45.6 and 43.5 per cent growth respectively.
Brisbane recorded five suburbs in the top 10 performing areas for unit list that showed a growth ranging from 38.3 to 43.4 per cent, while Adelaide rounding out the top 10 with Salisbury East units’ value rising by 40.2 per cent.
In comparison, the weakest performer among capital cities was Darwin, which scored the lowest 12-month change in the value of houses with a drop of -11 per cent.
The rest of the list was dominated by Melbourne, which recorded six suburbs varying between a -8.5 per cent and -10.2 per cent decline in house values.
Similarly, the top 10 worst-performing unit markets were almost all found in Melbourne, recording nine spots except the sixth position taken by Kincumber in the greater Sydney region, which saw its unit value drop by nearly 11 per cent in the past 12 months.
Regional markets’ house values varied, with regional Western Australia and regional Queensland dominating the chart, showing a rise between 33.5 per cent and 38.4 per cent, while Venus Bay in regional Victoria was the weakest house market nationally, with values down -15.4 per cent.
The same pattern followed suit for units in regional areas, with Queensland and Western Australia scoring top of the market, while Sawtell in NSW recorded the lowest unit change in value with a drop of -13.4 per cent.
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Owen said that while the country appeared currently split into two distinct markets, with capitals like Adelaide, Brisbane and Perth running at high speed while Melbourne, Sydney and the ACT dropping back, the gap between these two cohorts was set to narrow in the months ahead.
“However, even in high growth markets of Adelaide, Brisbane and Perth, there are distinct signs of a cyclical slowdown, with the quarterly pace of gains easing over the course of the year,” Owen said.
“Interestingly, the quarterly value decline across weaker capital city performers has shown marginal signs of easing towards the end of 2024.
“This could signal some stabilising of values in weaker markets through 2025 and a narrowing of the range in capital growth over the next 12 months,” she said.
Owen noted that buyers have responded to the higher interest rates and affordability challenges by turning their attention to more budget-friendly markets.
Across capital markets, Darwin dominated the list of “affordable” suburbs for houses, recording six suburbs, with Moulden’s median value being the cheapest in the country at $392,008.
Darwin also topped the list for the most affordable unit markets in the capitals, with eight suburbs, including Bakewell, which scored number with a median value of $278,855.
Nationally, Norseman in the Goldfields-Esperance region of Western Australia was named the most affordable house market with a median value of $80,289, while units in Laguna Quays in Queensland topped the list with a median value of $142,689.
In 2024, rent values in Australia remained high, but the strain on household demand led to slower rental growth, with the annual rent growth slowing to 5.3 per cent in the year to November, down from 8.1 per cent the previous year.
Owen said the slowdown was due to the ongoing cost-of-living pressures and lower net overseas migration.
Across the country, Noosa Heads saw the highest rent growth for houses, with a 23.7 per cent increase, while Geraldton in Western Australia led the unit market with a 21.5 per cent rise.
Owen said that while the Australian housing market showed resilience throughout most of 2024, it is expected to shift in 2025 with a drag on buyer demand in the first half of the year before the forecast of cash rate cut brings relief.
“A change in the official cash rate target could then mark an inflection point, increasing demand in the second half of the year,” she said.
“While market conditions are broadly expected to improve off the back of a cash rate reduction in 2025, there will still be considerable diversity in housing market performance.”
She noted that Melbourne and Hobart might see a slight increase in value due to improved affordability, while the demand-driven price growth in cities like Perth and Adelaide could start to slow.
Meanwhile, Owen said new housing construction remains subdued nationwide and is expected to continue into 2025, potentially helping to stabilise home values.
