The Australian property market is experiencing its customary seasonal slowdown as it transitions from spring into the holiday period, according to the latest Ray White Now report.
With a slight uptick in property prices, the pace of growth has notably tempered as the year drew to a close.
The approach of the festive season typically leads to a dip in market activity, evidenced by reduced listing volumes and diminished buyer urgency.
These seasonal trends are set against a backdrop of broader economic developments, including encouraging inflation figures that suggest potential interest rate adjustments might not occur until mid-2025.
Despite this recent moderation, the Australian property market over the past year has displayed enduring strength.
House prices nationally have seen a commendable increase of 7.7%, lifting the average to $898,745, while unit prices have risen by 5.8% to an average of $669,271, Ray White reported.
Title: Major city house price growth
Title: Major city unit price growth
Different regions are showing varied responses to the overall cooling trend.
Sydney’s market has stabilised with no significant monthly changes but still posted a 5.2% rise over the past year.
Perth continues to outperform with a 0.7% monthly increase and a notable 20.9% growth over the year.
Other cities like Adelaide and Brisbane are also showing positive momentum with each recording monthly increases of 0.6%.
The Gold Coast has notably surged ahead, surpassing Canberra and Melbourne in average house prices.
Title: Regional house price growth
The unit sector mirrors the diverse regional trends, with Perth leading in growth both monthly and annually.
Meanwhile, the Gold Coast maintains its position as a premium market for units, outpacing Sydney in price growth.
As the year progresses, coastal areas are expected to see increased activity, offering a counterbalance to the general market moderation.
Looking forward, Ray White said the property market is poised for a gradual revival from the holiday lull.
Improved economic conditions and the anticipated easing of interest rates later in the year could invigorate market dynamics, enhancing buyer and seller engagement as the year unfolds.
