Australia’s property market is continuing to post record prices but the pace of growth is slackening.
According to Domain’s House Price Report for the second quarter of 2024, house prices rose over the quarter in all capitals and kept pace with the previous quarter, but was down on the same period last year to record the slowest quarterly growth since early 2023.
Unit price growth dropped significantly to post the weakest quarterly outcome since the start of last year.
This has led to a slowdown in annual gains for the first time this growth cycle for both combined capital house and unit prices.
Sydney, Brisbane, Adelaide and Perth had record prices for houses, and Brisbane, Adelaide and Perth had new high prices for units.
House Prices, Quarter 2, 2024
| Capital City | Jun-24 | Mar-24 | Jun-23 | Quarterly change | Annual change | Price peak achieved | Price from peak |
| Sydney | $1,662,448 | $1,641,333 | $1,542,688 | 1.3% | 7.8% | Jun-24 | 0.0% |
| Melbourne | $1,068,805 | $1,050,950 | $1,032,096 | 1.7% | 3.6% | Dec-21 | -2.3% |
| Brisbane | $976,464 | $938,856 | $835,654 | 4.0% | 16.9% | Jun-24 | 0.0% |
| Adelaide | $929,972 | $906,352 | $801,691 | 2.6% | 16.0% | Jun-24 | 0.0% |
| Canberra | $1,041,432 | $1,032,753 | $1,033,066 | 0.8% | 0.8% | Jun-22 | -11.2% |
| Perth | $852,240 | $799,804 | $688,250 | 6.6% | 23.8% | Jun-24 | 0.0% |
| Hobart | $686,053 | $693,537 | $701,993 | -1.1% | -2.3% | Mar-22 | -10.0% |
| Darwin | $585,047 | $584,472 | $648,274 | 0.1% | -9.8% | Dec-13 | -13.8% |
| Combined capitals | $1,154,394 | $1,127,516 | $1,052,530 | 2.4% | 9.7% | Jun-24 | 0.0% |
Source: Domain House Price Report, Quarter 2, 2024
But in Sydney and Adelaide price growth was half that of the previous quarter.
Sydney prices hit a record of $1.66 million with a $21,000 gain across the quarter (1.3 per cent) with unit prices dropping for the first time in 1.5 years.
Melbourne had the strongest house price growth in 2.5 years with an increase of 1.7 per cent or $18,000 across the quarter.
Brisbane is expected to pass $1 million in house prices next quarter while its unit prices are still growing in a growth cycle that is the longest since 2005-2008.
Unit prices managed to pass $500,000 in Adelaide and Canberra.
Perth’s house prices moved past $800,000 with an increase of $448 per day over the past year, the fastest and steepest rise in its history.
House prices dropped to a three-year low in Hobart while in Darwin they remained steady as unit prices dropped for the second quarter in a row.
Unit Prices, Quarter 2, 2024
| Capital City | Jun-24 | Mar-24 | Jun-23 | Quarterly change | Annual change | Price peak achieved | Price from peak |
| Sydney | $797,212 | $802,239 | $775,852 | -0.6% | 2.8% | Dec-21 | -1.7% |
| Melbourne | $555,461 | $564,906 | $556,359 | -1.7% | -0.2% | Dec-21 | -7.8% |
| Brisbane | $579,823 | $562,080 | $488,520 | 3.2% | 18.7% | Jun-24 | 0.0% |
| Adelaide | $511,039 | $486,509 | $444,337 | 5.0% | 15.0% | Jun-24 | 0.0% |
| Canberra | $595,951 | $585,532 | $599,797 | 1.8% | -0.6% | Sep-23 | -5.5% |
| Perth | $466,720 | $433,040 | $371,848 | 7.8% | 25.5% | Jun-24 | 0.0% |
| Hobart | $538,662 | $538,662 | $548,850 | 0.0% | -1.9% | Sep-22 | -5.2% |
| Darwin | $342,886 | $355,131 | $352,149 | -3.4% | -2.6% | Mar-16 | -29.5% |
| Combined capitals | $646,486 | $644,378 | $614,802 | 0.3% | 5.2% | Jun-24 | 0.0% |
Source: Domain House Price Growth Report, Quarter 2, 2024
According to Domain, the varied growth trends across cities are influenced by different supply and affordability constraints, with a 7 per cent annual increase in homes on the market and a 9 per cent increase in new listings indicating restored vendor confidence due to sustained price rises.
However, stretched affordability appears to be increasing the time it takes to sell across some cities.
Sellers are gaining confidence but affordability means it is taking longer to sell a house in some cities, according to Domain research and economics chief Dr Nicola Powell.
“The housing market remains resilient despite low consumer sentiment, economic pressures and high interest rates,” Powell said.
“Supply still remains constrained overall, weighed against a surge in demand from strong population growth and a tight rental market.
“Demand is also being sustained by rising investor activity which may inevitably shift focus to units.
“It is likely that current demand is being propped up both by existing leverage from the property market and the bank of mum and dad – factors likely to become stronger due to ongoing price growth.”
Powell said the price growth trend was unlikely to reverse.
“Given that building approvals across the country have been on a declining trend since 2021— an indicator of constrained supply—the price growth trend is unlikely to reverse itself,” Powell said.
“However, the persistent price growth trend may be tempered by higher cash rates and inflation in the long run, so there might be some relief in store for those looking to enter the market.”
