Your Property Market Insights
A weekly look at the hot topics in real estate across the country…Nov 30 2024
Welcome to this inaugural weekly edition of Groundswell Property’s Market Insights, where we bring you the latest trends, research, and expert opinions shaping real estate across Australia.
From the continuing rise of regional living to the most affordable city suburbs and 2025 market predictions, we’ve got all the essential updates you need to stay informed on what’s happening in the property market.
2025 Forecast: Which Cities Will Lead the Property Market?
Property prices are tipped to keep growing, particularly in Australia’s smaller capital cities in 2025.
SQM Research’s 2025 Boom and Bust Report says the most likely scenario next year of a 25 to 50 basis point rate cut midway through the year means property values could increase between 1% and 4%.
SQM Research managing director Louis Christopher says Perth will lead the market with growth between 14% and 19%, followed by Brisbane (9% to 14%) and Adelaide (8% to 13%).
Christopher predicts that prices will drop by as much as 5% in both Sydney and Melbourne.
“Our two largest capital cities, along with Canberra and Hobart, will start 2025 off in the red,” Christopher says.
“We are currently recording dwelling price falls in each of these cities.
“However, once interest rate cuts do occur, we are expecting a speedy bounce in demand for Sydney and Melbourne in particular (where both are still) experiencing underlying housing shortage relative to the strong population growth rates.”
City to Country: The Regional Boom Rolls On
The big push to affordable lifestyle locations in regional Australia continues, with 40% of city dwellers considering moving to other regions.
Regional Australia Institute (RAI) research shows the number of people considering a move has doubled from 20% in May 2023 to 40% in November 2024.
RAI CEO Liz Ritchie says demand for regional living has never been higher.
The RAI’s annual progress report shows regional rental vacancy rates dropped from 1.5% in 2023 to 1.3% in 2024. At the same time building approvals have dropped by 9.4%.
Ritchie says regional Australia is undergoing an unprecedented transformation and there is a need for improved services and infrastructure in regional communities.
“Many regions are already struggling with housing, particularly rental markets, and until region-specific policy measures are put in place, this will only be further magnified,” she says.
While housing may be hard to come by in the regions Ritchie says there are nearly 76,000 jobs available across regional Australia.
Student Housing Surge: What’s Driving the Growth?
Student accommodation has nearly doubled in the past decade, according to new analysis of the sector.
The number of student accommodation beds has increased on the back of a surge in private developers moving into the purpose-built student accommodation sector.
The Student Accommodation Benchmarks report shows there are 132,700 student accommodation beds in Australia, over half (53 %) of which are owned or managed by the private sector.
Victoria has the highest level of student accommodation with 43,982 beds, followed by New South Wales (34,069), Queensland (23,353), ACT (10,226) and South Australia (9,133).
Student Accommodation Council Executive Director Torie Brown says there is another 29,500 beds in the supply pipeline, with about 7,400 already in the construction stage, 14,900 approved, and 7,200 awaiting development approval.
It comes as the latest Rental Affordability Index shows the private rental market has never been less affordable and students are struggling to even afford share homes.
That’s it for this week’s Your Property Market Insights. Whether you’re hunting for a suburb on the rise, or are keen to understand whats playing out in different markets across the country, staying informed is key.
Keep an eye out next week for more expert insights and the latest updates on Australia’s ever-evolving property market.
Have a great weekend and reach out if you’re looking for support with your next purchase - Tom