After Australia’s mid-sized capital cities Perth, Adelaide and Brisbane recorded double-digit growth during 2024 to prop up overall national price gains of 4.9%, property values have weakened for the first time in two years during the December quarter, down 0.1%, fresh CoreLogic data has revealed.
Sales data reveals that while the first half of 2024 saw a nationwide rise of 4.1%, value growth slowed to just 0.7% through the second half of the year.
Perth topped Australian capital city property value growth, surging 19.1%, followed by Adelaide up 13.1% and Brisbane 11.2% higher, with Australian home values adding about $38,000 to their median prices.
Three of the capitals recorded slight declines in value over the year; Melbourne (-3%), Hobart (-0.6%) and the ACT (-0.4%).
December quarter decline
CoreLogic reports that although the mid-sized capitals recorded double-digit annual growth in 2024, fresh data made clear these markets had passed their peak rate of growth, seeing the first quarterly dip in house prices for two years.
The rolling annual change in Perth eased from a cyclical peak of 24.7% over the year ending July, Adelaide’s 12-month trend has slowed from 14.6% in August, and Brisbane’s annual gains peaked in April at 17%.
December also marked a change in the quarterly capital city rankings, with Adelaide overtaking Perth as the strongest market with values up 2.1% in the December quarter, compared with a 1.9% rise in Perth and 1.3% increase in Brisbane.
CoreLogic research director Tim Lawless said the decline in values was no surprise and represents the housing market catching up with the reality of market dynamics.
“Growth in housing values has been consistently weakening through the second half of the year, as affordability constraints weighed on buyer demand and advertised supply levels trended higher,” Lawless said.
“Extremely low advertised stock levels have continued to support strong growth conditions across Adelaide, with stock levels tracking -34% below the previous five-year average in mid-December.
“Perth, on the other hand, has seen a clear lift in advertised supply, which has provided buyers with more choice and less urgency, supporting a sharper slowdown in value growth relative to Adelaide.”