Welcome back! We hope this newsletter finds you refreshed and rejuvenated after the festive season. As the curtains close on 2024, the real estate market in Australia and New Zealand finds itself at a crossroads, with significant shifts shaping the landscape. Let’s delve into the key highlights and trends that defined the final month of the year
The Australian real estate market reported a 0.1% decline in national home values for December, marking the first drop in nearly two years and signalling a market plateau.
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National Trends: Home values rose 4.9% in 2024, adding $38,000 to the median value, but growth slowed to 0.7% in the second half of the year.
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Capital Cities: Melbourne, Hobart, and Canberra saw declines, while Perth (19.1%), Adelaide (13.1%), and Brisbane (11.2%) led annual growth.
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Two-Speed Market: Adelaide overtook Perth as the strongest market in December, with a 2.1% monthly increase compared to Perth’s 1.9%.
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Rental Market: December rental growth was just 0.1%, with a 4.8% annual increase reflecting a cooling trend.
Meanwhile, over in New Zealand home value declines and fell 0.2% in December and 3.9% ($32,200) over the year, with the median now at $803,000. Post-COVID Correction: Values are 17.6% below the peak but still 16.2% higher than pre-pandemic levels.
Despite a softening in both the Australian and New Zealand markets, it’s not all doom and gloom. While 2025 may bring challenges, such as subdued growth and migration slowdowns, opportunities remain for savvy investors and buyers willing to adapt to changing conditions. Affordability improvements, a stabilising rental market, and pockets of strong returns offer reasons for optimism.
As always, here’s to your success in 2025.
Cheers
