National values are still rising, but the pace of growth is easing off.
Australia’s property market kept its winning streak going in August 2024, with national home values rising 0.5% according to CoreLogic’s Home Value Index. That marked the 19th consecutive month of growth. However, the quarterly growth rate of 1.3% is less than half the 2.7% recorded in the same period the previous year. Demand still outpaces supply overall, but the gap is narrowing. If you’re thinking about buying or refinancing, use our borrowing power calculator to see where you stand today.
State by state
Results varied sharply across the capital cities in August 2024:
Regions vs capitals
Regional markets held their own over the quarter. Combined regional areas saw dwelling values rise 1.1% over the three months to August, compared to 1.3% for combined capital cities.
On an annual basis, the gap was even smaller. Regional areas recorded 7.0% growth while capital cities came in at 7.1%. Both markets have grown at a broadly similar pace over the past year, though some regions like Perth and Adelaide are seeing listings well below their five-year averages, while others are accumulating stock.
Rental market
The national rental market showed signs of easing in August. The CoreLogic hedonic rent index was unchanged for the second consecutive month, marking the lowest annual rent growth rate since May 2021.
Not all cities moved together. Hobart saw rents rebound, while Sydney and Brisbane recorded consecutive monthly declines. This suggests the rental surge of recent years is beginning to cool in some markets, giving tenants a little more breathing room even as supply constraints persist nationally.
Market outlook
The outlook heading into spring 2024 is cautious. Values are still rising, but affordability is stretching thinner. High interest rates and cost-of-living pressures are limiting how much buyers can offer, particularly in the cities that have seen the strongest growth.
Markets like Brisbane, Adelaide and Perth face the question of how long strong demand can hold up against stretched affordability. In Victoria and Tasmania, softer price performance and rising listings point to a more challenging period ahead.
For buyers, the spring selling season may bring more options. For sellers in weaker markets, pricing expectations will need to be realistic. If you are weighing up your next move, read our guide to home loan trends to understand how the lending environment is shaping buyer behaviour.
Common questions
Q: Why did Melbourne underperform other capitals in August 2024?
Melbourne has faced a combination of affordability pressures, rising supply and softer demand compared to cities like Perth and Adelaide. Its median dwelling value fell below Adelaide and Perth in August, reflecting a longer-term trend of slower growth. State-level factors including higher property taxes and a larger investor exit have also weighed on sentiment.
Q: Is Perth still a good market to buy in after so much growth?
Perth has recorded strong gains over an extended period, which means affordability has improved less than in other cities. That said, listings remain below the five-year average, which continues to support values. Whether it suits your situation depends on your budget, goals and how long you plan to hold the property. Speaking with a mortgage broker can help you assess your options.
Q: How does the slowing market affect my borrowing power?
Borrowing power is driven more by interest rates and your income than by property values. What a slower market does change is your negotiating position as a buyer. With less competition in some cities, you may have more time and flexibility to find the right property at the right price without pressure to overpay.