After nearly two years of rising home prices, the Australian property market has seen its first decline, with national home values dropping by 0.1 per cent in December 2024. This marks the first downturn since February 2023, according to CoreLogic.
Shifting Market Trends
The decline follows a period of consistent growth that stalled in November 2024. CoreLogic’s research director, Tim Lawless, explains, “This result 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.”
Major Cities See Declines
In December, house prices fell by 0.2 per cent across Australia’s five largest capital cities. Melbourne experienced the largest drop (-0.7 per cent), followed by Sydney (-0.6 per cent). Meanwhile, Adelaide (+0.6 per cent), Brisbane (+0.5 per cent), and Perth (+0.7 per cent) bucked the trend with increases.
Adelaide surpassed Perth as the strongest market in December due to exceptionally low stock levels, which remained 34 per cent below the previous five-year average. Perth, by contrast, saw increased supply, giving buyers more options and easing value growth.
Annual Growth in 2024
Nationally, house prices rose by 4.9 per cent in 2024, adding approximately $38,000 to median home values. However, this growth pales in comparison to 2023’s 8.1 per cent increase.
Perth led the nation with a staggering 19.2 per cent growth in home values, followed by Adelaide (13.1 per cent) and Brisbane (11.2 per cent). Conversely, Melbourne (-3.0 per cent), Hobart (-0.6 per cent), and Canberra (-0.4 per cent) recorded declines.
Regional Variations
Regional housing markets fared better, with a 0.6 per cent value increase in December 2024, compared to a 0.2 per cent decline in capital cities. Western Australia’s regional areas saw the highest annual growth (16.1 per cent), followed by South Australia (12.5 per cent) and Queensland (10.5 per cent).
What This Means for Café and Business Owners
If you’re a café owner or small business owner, this shift in the housing market could impact both your personal and business finances. Many businesses rely on property as collateral for loans—when was the last time you reviewed yours?
With fluctuating property values, interest rates, and affordability constraints, now is the time to act. Conducting a financial health check for your business and personal assets could uncover opportunities to restructure loans, minimize costs, or unlock equity to invest back into your business.
Take Charge in 2025
The housing market’s shift signals that conditions are changing. Don’t wait for market uncertainties to catch you off guard. Reach out for expert guidance and take control of your financial future today.
To read more about the latest property trends, check out the full article on SBS News.
