What’s ahead for property in 2025 - John McGrath

Property is entering a new phase as we start the new year, with price growth slowing across the nation.

The key indicator was the first fall in the national median value in December after 22 consecutive months of growth. It was only an 0.1% drop, but it was a clear signal of changed market conditions.

Before we get into that, let’s review the final numbers for 2024.

CoreLogic data shows strong growth in the best-performing capital cities of Perth, Adelaide, and Brisbane, with home values up 19.1%, 13.1% and 11.2% respectively. Home values in Sydney rose by 2.3% and there were minor falls in Melbourne, Canberra, and Hobart.

In the regions, home values rose 16.1% in Western Australia, 12.5% in South Australia and 10.5% in Queensland. There were 3% to 3.5% gains in NSW and Tasmania and a minor fall in Victoria.

Looking ahead, the market may cool off for a period regardless of when interest rate cuts begin. The first couple of rate cuts won’t make a huge difference to the market but will have a positive impact on confidence. Interest rates are going to have to come down by 1% or 2% before there’s real relief for homeowners and buyers.