The latest insights from CoreLogic’s Home Value Index indicate a significant shift in Australia’s property market as the momentum seen in recent years begins to wane.
Over the September quarter, only four of Australia’s eight capital cities—Sydney, Brisbane, Adelaide, and Perth—experienced growth in median home prices. In contrast, the remaining cities saw declines. Notably, even in previously thriving markets like Perth and Adelaide, the pace of growth has notably slowed. For instance, prices in Perth increased by only 4.7% over the past three months, down from 6.2% in the previous quarter.
As Tim Lawless, CoreLogic’s research director, points out, “Pretty much everywhere, we’re seeing a slowdown in the rate of growth.” He noted that Sydney has not recorded such a low rate of growth since February 2023, with median home prices rising just 0.5% during the September quarter. Lawless anticipates this trend to persist, stating, “In some of the larger markets like Sydney, it does look like that market’s set to level out if not move into some level of a shallow downturn.”
Several factors contribute to this downturn, including increased housing stock, slower population growth, and speculation around potential interest rate cuts. However, Lawless highlights a crucial aspect of the current landscape: “We’ve moved through a very strong housing market at a time when the economy itself has been quite weak, and […] I think we’re finally starting to see affordability pressures biting.”
As the property market evolves, stakeholders need to stay informed and adapt to these changes.
