Spring growth stalls as affordability weighs on buyers.
Australia’s housing market slowed sharply in September 2024, with CoreLogic’s Home Value Index recording just a 1.0% rise in national home values over the quarter. That is the weakest three-month result since March 2023, when the current upswing was just getting started. Affordability pressures, high interest rates and softer buyer demand are all playing a role.
Here’s the full picture across every capital city and regional market, plus what the data means for your home buying plans. Use our borrowing power calculator to see how your budget stacks up in the current market.
National overview
National dwelling values rose 0.4% in September alone and 1.0% over the full quarter. Annual growth across the combined markets held at 6.7%. Capital cities posted a 1.1% quarterly gain, while regional markets came in at 1.0%, meaning neither sector is dramatically outperforming the other.
This slowdown follows a pattern already visible in the months prior. Our property market August 2024 update noted easing conditions in most cities, and September confirmed that the spring bounce many expected has largely failed to materialise.
Capital cities
Results varied considerably across the capitals. Perth continued to stand out as the nation’s strongest market, while Melbourne extended its decline. Here is how each city performed in September 2024:
Regional markets
Regional markets tracked close to the capitals on an annual basis, both recording 6.7% growth over the year. On a quarterly basis, some regional areas outperformed their nearest capital cities.
Regional Victoria and New South Wales posted more modest gains, reflecting similar affordability pressures to Melbourne and Sydney. The story is similar to the capitals: the more affordable and high-demand areas are holding up better than the bigger, pricier markets.
Rental market
The rental market is also losing momentum. The national rental index grew just 0.1% over the September quarter, its smallest three-month movement in four years.
Sydney rents fell 0.5% for the quarter, Brisbane dropped 0.2%, and Canberra was down 0.8%. Melbourne and Perth each posted modest gains of 0.3%, but that is a fraction of the 2.2% and 2.3% quarterly rises those cities recorded a year earlier.
Two factors are driving the slowdown. Net overseas migration has pulled back from its post-COVID peak. And high rents are pushing households to double up, share homes or move to multi-generational living arrangements, reducing the number of separate rental properties needed.
What's ahead
The outlook heading into 2025 is one of gradual change rather than sharp moves in either direction. Here is what to watch:
Common questions
Q: Why did property growth slow so much in September 2024?
A combination of factors is at work. Affordability has become a real barrier after years of strong price growth. Interest rates remain high, which limits what buyers can borrow. And more properties are being listed, which gives buyers more choice and reduces urgency. The result is a market that is still growing in most areas, but at a much slower pace.
Q: Which city was the strongest performer in September 2024?
Perth was the clear standout, posting 1.6% growth in September, 4.7% over the quarter and 24.1% over the year. A combination of tight housing supply, strong interstate migration and a robust local economy has kept Perth well ahead of other capitals.
Q: Is now still a good time to buy?
That depends on your personal circumstances, your finances and where you want to buy. In softening markets like Melbourne and Canberra, buyers have more room to negotiate. In tight markets like Perth and Adelaide, competition is still strong. The most important thing is knowing your borrowing capacity and having your finances in order before you start looking.