Research

Australian Property Market Trends

2 July 2024

May 2024 – National Review

The annual capital city change in house and unit values for the month of May are:

502,255 annual dwelling sales
5.2 % higher than one year ago
-2.4% lower than the five-year average for the region
2.6% house sales
11.7% unit sales

The national housing market continued its price growth acceleration whilst registering new market highs in May. The trend higher continued, now reflecting sixteenth consecutive month (up a further +0.8% in May) and the largest monthly gain since October 2023. Quarterly growth remains at sustainable levels (+1.9%) and has slightly accelerated on this time last year (+1.8%). Perth, Adelaide and Brisbane continue to lead the pace of growth with Perth values up +2.0% in May, closely followed by Adelaide up +1.8% and Brisbane +1.4%.

Market conditions continue to produce diverse results with each of the capital cities and rest-of-state regions recording a lift in values over the month at varying rates, the only exceptions to this being Hobart and Darwin (where the market subtly eased -0.5% and -0.3% respectively) and Regional Victoria and Tasmania which both recorded slight easing of -0.2%.

Market Outlook

Listings are down for houses (-1.2%) and up for units (6.9%) nationally
Houses spent 29 days on the market on average, and units on the market for 29 days on average
Vendor discounts was -3.9% for houses and -3.2% units
Median value of houses nationally was $848,383 and units was $649,995

What’s Hot – National Suburb Annual Change

#1 – Armadale (WA) – 32.1%
#2 – Kwinana (WA) – 31.0%
#3 – Gosnells (WA) – 29.7%
#4 – Rockingham (WA) – 27.9%
#5 – Mandurah (WA) – 26.2%
#6 – Serpentine – Jarrahdale (WA) – 25.9%
#7 – Cockburn (WA) – 25.9%
#8 – Wanneroo (WA) – 25.7%
#9 – Canning (WA) – 24.6%
#10 -Springwood – Kingston (QLD) – 24.2%

Final outlook

The outlook for property market is one of continued growth as the mismatch between supply and demand remains, this is supported by dwelling values continuing to rise across most areas and housing types, with growth accelerating in some markets where supply conditions are most effected.

Housing demand and supply are expected to eventually level out, driven by slowing population growth and over time an increase in construction activity. Interest rates remain the key factor influencing property markets looking forward. The RBA noted they expect affordability constraints and high construction costs to continue weighing on dwelling investments in 2025 and 2026, but dwelling investment growth should pick up around the middle of next year.

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Disclaimer – The information contained in this publication is gathered from multiple sources believed to be reliable as at the end of May 2024 and is intended to be of general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, ubank recommends that you consider whether it is appropriate for your circumstances. ubank recommends that you seek independent legal, property, financial, and taxation advice before acting on any information in this publication.

Find our past publication here: [Feb 2024] [Mar 2024] [Apr 2024]