From Perth’s unexpected dominance in value growth to the significant rise in demand for affordable housing, the report showcases the trends that shaped a volatile year.
Despite fluctuating interest rates and affordability pressures, Australia’s housing market recorded an 8% increase in sales, reaching 528,000 transactions nationally.
However, the most surprising revelation comes from Perth, which claimed all 10 spots for the strongest house value growth, with suburbs delivering annual gains of over 30%.
Eliza Owen, CoreLogic’s Head of Research, said: “The market’s initial strength in 2024 gradually waned due to declining demand, rising levels of advertised supply, and a shifting outlook for inflation and interest rates. But Perth’s performance stands out as a clear leader in value growth.”
The top 10 performing suburbs in Greater Perth for 2024, based on the highest annual change in house values, are:
Beechboro (North East) – 30.7%
Bellevue (North East) – 36.9%
Balga (North West) – 35.0%
Stratton (North East) – 34.1%
Armadale (South East) – 33.0%
Yangebup (South West) – 32.8%
Koondoola (North West) – 32.2%
Midvale (North East) – 31.2%
Midland (North East) – 31.1%
Lockridge (North East) – 31.0%
Key Trends in 2024
- Perth’s astonishing growth
Perth emerged as the clear leader in value gains, outperforming all other capital cities. Beachlands in WA recorded a staggering 38.4% increase in house values, while units in Armadale surged by 45.6%. Perth’s affordability and infrastructure developments attracted buyers, particularly in suburbs with median values below $661,000. - Affordable markets drive demand
Buyers focused on the lower end of the market, with the bottom quartile of national property values rising by 10.3%, compared to just 3.0% for the upper quartile. This trend was particularly evident in Perth, Brisbane, and Adelaide, where affordable units drove significant growth. - Resilience amid challenges
The housing market added $11 trillion in value this year, even as rising supply and interest rate pressures slowed momentum. Regional WA and Queensland also saw notable performances, with Dolphin Heads in QLD posting a 52.8% gain in unit values. - Luxury markets hold steady
Prestige properties maintained their appeal, with Sydney’s Bellevue Hill ranked the most expensive suburb in Australia, boasting a median house value of $10 million. Mosman recorded the highest total sales value nationally at $1.652 billion.
Meanwhile rental markets showed signs of strain, with annual rent value growth slowing to 5.3%, down from 8.1% in 2023.
High living costs and reduced migration contributed to the decline. Noosa Heads led the nation for house rent growth at 23.7%, while Geraldton in WA topped the unit market with a 21.5% increase.
The report also predicts a challenging start to 2025, with buyer demand likely to soften further in the first half of the year. However, a potential easing of interest rates mid-year could reignite market activity.
“A change in the official cash rate target could mark an inflection point, increasing demand in the second half of the year,” Ms Owen said.
Top Performers and Surprises of 2024
- Best Performing Suburb (Houses): Beachlands, WA (+38.4%)
- Best Performing Suburb (Units): Dolphin Heads, QLD (+52.8%)
- Most Expensive Suburb: Bellevue Hill, NSW (median house value ~$10 million)
- Most Affordable Suburb (Houses): Norseman, WA (median house value $80,289)
