Key takeaways
Annual price increases have slowed to their lowest levels since September 2023, making 2024 the weakest calendar year of growth since 2022.
Despite the slowdown, combined capital house and unit prices have continued to rise overall, with house prices extending their growth streak to eight consecutive quarters and unit prices reaching seven. This represents the longest period of uninterrupted quarterly growth since 2012-2015.
Changing market dynamics, including weakened demand, the possibility of cash rate cuts, and increased supply, are expected to create a buyer’s market in 2025.
If you want to understand what's happening in our housing markets around Australia, Domain has just released its latest house price report.
The report revealed that annual property price increases have slowed to their lowest levels since September 2023, as changing market conditions are expected to reshape the market as we head into the new year and autumn selling season.
Despite this slowdown, house and unit prices in capital cities have continued to show resilience, with house prices extending their growth streak to eight consecutive quarters and unit prices reaching seven.
Here's a summary of the Domain report, and below are all the details you'll need to know.
Key report highlights:
- Brisbane house prices have reached a median of $1 million for the first time, while Adelaide is set to break the $1 million milestone in early 2025.
- House prices in Brisbane, Adelaide, and Perth have all set new record highs, with Perth surpassing $900,000 and on track to reach $1 million by the end of 2025.
- Sydney house prices declined by $1,300 over the quarter, the only capital city to record a decline in house price. This marks the second consecutive quarterly decrease, the first occurrence in two years.
- In contrast, Melbourne saw its first house price increase in a year, the largest in three years.
- Hobart was the only capital city to experience a decline in unit prices during the December quarter.
- Australia’s more affordable capital cities were the standout performers of 2024; for houses, Perth (19.5%) led gains, followed by Adelaide (14.6%) and Brisbane (10.9%).
- Sydney, Brisbane, Adelaide, and Perth all recorded record-high unit prices, while Melbourne experienced its strongest unit price growth in 1.5 years.
- Brisbane's house price growth lost momentum, with quarterly growth more than halving compared to the same period in the previous year.
National overview
Domain reports that home prices across the combined capitals continued to climb over the final quarter of 2024, marking the eighth consecutive quarter of growth for houses and the seventh for units, with prices hitting record highs.
Domain's Chief of Research and Economics, Dr Nicola Powell, said:
"The housing market has slowed significantly across all capital cities, with affordability issues, rising living costs, and limited borrowing power all taking their toll.
The market is finally catching up to the financial pressure many buyers have been facing.
At the moment, many potential buyers are holding off, hoping for a cash rate cut to improve their borrowing power."
Dr. Powell further explained...
The slowdown is largely due to affordability pressures, with rising prices making it harder for many buyers to keep up.
Wages haven’t kept up with home prices, and the ongoing cost-of-living squeeze is only adding to the challenge.
Many potential buyers are holding off, hoping for a cash rate cut to boost their borrowing power.
As demand wanes, supply has been steadily rising – 2024 ended with the highest number of homes for sale for the month of December across the combined capitals in three years, and it's even more pronounced in Sydney, at a six-year high.
This growing choice is contributing to softer clearance rates, properties staying on the market longer, and more price negotiations – clear signs that the market is shifting to favour buyers.
The autumn selling season will bring opportunities for buyers.
The current median house price and changes
| HOUSES | STRATIFIED MEDIAN PRICE | |||||||
| Capital City | Dec-24 | Sep-24 | Dec-23 | Quarterly change | Annual change | Price peak achieved | Price from peak |
| Sydney | $1,645,444 | $1,646,790 | $1,593,723 | -0.1% | 3.2% | Jun-24 | -0.4% |
| Melbourne | $1,039,460 | $1,023,548 | $1,050,314 | 1.6% | -1.0% | Dec-21 | -4.9% |
| Brisbane | $1,016,192 | $993,107 | $916,484 | 2.3% | 10.9% | Dec-24 | 0.0% |
| Adelaide | $992,193 | $967,618 | $865,816 | 2.5% | 14.6% | Dec-24 | 0.0% |
| Canberra | $1,065,187 | $1,065,187 | $1,040,247 | 0.0% | 2.4% | Jun-22 | -9.2% |
| Perth | $913,011 | $898,477 | $764,185 | 1.6% | 19.5% | Dec-24 | 0.0% |
| Hobart | $712,851 | $681,289 | $700,646 | 4.6% | 1.7% | Mar-22 | -6.5% |
| Darwin | $651,771 | $633,149 | $623,728 | 2.9% | 4.5% | Dec-13 | -3.9% |
| Combined capitals | $1,165,345 | $1,152,250 | $1,102,174 | 1.1% | 5.7% | Dec-24 | 0.0% |
The current median unit price and changes
| UNITS | STRATIFIED MEDIAN PRICE | |||||||
| Capital City | Dec-24 | Sep-24 | Dec-23 | Quarterly change | Annual change | Price peak achieved | Price from peak |
| Sydney | $812,863 | $809,769 | $792,600 | 0.4% | 2.6% | Dec-24 | 0.0% |
| Melbourne | $577,405 | $565,670 | $572,955 | 2.1% | 0.8% | Dec-21 | -4.2% |
| Brisbane | $632,644 | $621,578 | $535,578 | 1.8% | 18.1% | Dec-24 | 0.0% |
| Adelaide | $541,573 | $538,406 | $476,564 | 0.6% | 13.6% | Dec-24 | 0.0% |
| Canberra | $585,939 | $585,939 | $618,729 | 0.0% | -5.3% | Sep-23 | -7.0% |
| Perth | $511,119 | $484,954 | $398,666 | 5.4% | 28.2% | Dec-24 | 0.0% |
| Hobart | $528,220 | $536,290 | $524,838 | -1.5% | 0.6% | Sep-22 | -7.1% |
| Darwin | $349,770 | $335,160 | $365,951 | 4.4% | -4.4% | Mar-16 | -28.1% |
| Combined capitals | $670,697 | $662,464 | $636,822 | 1.2% | 5.3% | Dec-24 | 0.0% |
Dr Powell further said:
"As demand decreases and more homes come onto the market, we're seeing a shift in dynamics that can’t be ignored.
2024 ended with the highest number of homes for sale for the month of December in the combined capitals in three years, setting the foundation for more options during the Autumn season.
This has led to softer clearance rates, longer time on the market, and more opportunities to negotiate on price.
Overall, the market seems to be moving towards a buyers' market, which could offer better conditions for those looking to purchase property this year."
- Also read:Melbourne property market forecast for 2025
- Also read:Brisbane’s property market forecast for 2025
- Also read:Latest property price forecasts for 2025 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Sydney property market forecast for 2025
- Also read:You’ll never believe the most affordable regions to rent in Australia
