2024 saw home owners nationally pocket median gains of $38,000, but what lies in store for 2025? We take a look ahead.

The last 12 months notched up another great year of price gains in Australia’s property market, with home owners nationally pocketing median price growth of $38,000[1].

However, price movements varied considerably according to location.

Sydneysiders, for example, started 2024 with a median home value of $1.128 million[2], and finished the year with homes sitting on a median value of $1.191 million[3]. 

That made for easy capital growth of around $63,000 for the year – equal to an extra $5,250 in personal wealth each month!

The smaller cities lead the market

For serious price growth, 2024 belonged to our three smaller cities.

Brisbane (values up 11.2%), Adelaide (up 13.1%) and Perth (a whopping 19.1% increase) all made headlines last year for their remarkable increase in home prices[4].

But even these impressive gains were eclipsed by some markets.

Neighbourhoods with the biggest price growth

CoreLogic data reveals the suburbs in each capital city that achieved the highest price growth in 2024[5]. 

At the top of the leaderboard is:

• Brisbane – Ipswich up 16.4%
• Sydney – Fairfield up 12.5%
• Canberra – Molonglo up 2.3%
• Melbourne – Casey North up 0.6% 
• Hobart – Sorrel/Dodges Ferry up 2.9%
• Adelaide – Playford up 18.4%
• Perth – Swan up 24%
• Darwin – Litchfield up 4.4%

Regional home values outperformed our big cities

Regional markets continued to shine in 2024, with annual price growth nationally of 6.0% compared to 4.5% across our capital cities.  

The stand-outs for home price growth in regional areas for 2024 are:

• Queensland – Townsville up 27.2%
• New South Wales – Richmond Tweed hinterland up 10.3%
• Victoria – Mildura up 6.7%
• Tasmania – Burnie-Ulverstone up 7.9%
• South Australia – Yorke Peninsula up 17.6%
• Western Australia – Mid-west 29.9%

What lies ahead for 2025?

The good news for buyers right now is that some of the heat has come out of the market. This is making a home purchase more affordable.

But CoreLogic doesn’t expect things to stay this way for long[7].

Long-awaited cuts to interest rates will improve home buyers’ borrowing power, and this looks set to reignite housing demand. 

Better still, we could be looking at multiple rate cuts.

NAB, for example, is expecting three rate cuts in 2025[8].  Westpac says there is a possibility we could see rates start to fall in autumn[9]. 

Looking ahead Angus Raine, Executive Chairman Raine & Horne, said, “Demand remains strong, but the supply of properties is constrained by factors such as government red tape, stamp duty, a shortage of skilled tradespeople and high building costs. 

“This scarcity, combined with sustained buyer demand, is likely to support property growth similar to 2024 into 2025, with growth of 4% to 6% now in prospect. 

“An early rate cut in 2025 could be the magic catalyst for buyers, finally putting the interest rate genie back in its bottle and sparking them back into property buying mode. A rate cut either in February or early April could also set the stage for a strong autumn selling season.”

The key take out is that trying to time the market could see you miss out on a great home, Angus added. 

“The old saying is that the best time to buy is when you can afford to and your finances are in place,” he said.

Talk to your Raine & Horne expert

No matter whether you’re a first home buyer, upgrader or keen to buy an investment property, your Raine & Horne property expert can provide valuable insights into how the local market is performing.  

Talk to us today and start kicking your 2025 property goals sooner. 

 
[1] https://www.corelogic.com.au/__data/assets/pdf_file/0022/25456/CoreLogic-HVI-Jan-2025-FINAL.pdf 
[2] https://www.corelogic.com.au/news-research/news/2024/australian-home-values-surge-in-2023
[3] https://www.corelogic.com.au/__data/assets/pdf_file/0022/25456/CoreLogic-HVI-Jan-2025-FINAL.pdf
[4] https://www.corelogic.com.au/__data/assets/pdf_file/0022/25456/CoreLogic-HVI-Jan-2025-FINAL.pdf
[5] https://www.corelogic.com.au/__data/assets/pdf_file/0022/25456/CoreLogic-HVI-Jan-2025-FINAL.pdf
[6] https://www.corelogic.com.au/__data/assets/pdf_file/0022/25456/CoreLogic-HVI-Jan-2025-FINAL.pdf
[7] https://www.corelogic.com.au/news-research/news/2025/australias-housing-market-has-just-entered-a-downturn-whats-behind-the-shift
[8] https://news.nab.com.au/news/nab-group-ceo-on-the-2025-economic-outlook/
[9] https://www.westpaciq.com.au/economics/2024/12/westpac-market-outlook-december-2024-january-2025