Interest Rates Stable, Regional Growth: 2024 Property Market
The Australian property market in 2024 has been defined by two standout trends: stable interest rates and remarkable growth in regional areas. These dynamics have shifted the real estate landscape, offering opportunities for buyers and investors willing to adapt to the evolving market.
Why Stable Interest Rates Matter
Throughout 2024, the Reserve Bank of Australia (RBA) maintained the cash rate at 4.3%. This year-long stability provided a rare period of certainty for buyers, allowing them to plan with confidence. With inflation trending downward, the conditions were ripe for steady property investment.
Interestingly, while interest rates remained unchanged, the broader economic environment continued to evolve. Government spending and inflation trends influenced affordability, but for many buyers, the lack of rate hikes made this year an ideal time to explore new opportunities in both metropolitan and regional markets.
The Regional Property Boom
While capital cities saw mixed results, regional markets stole the spotlight in 2024. Regions offering affordability and lifestyle appeal experienced some of the highest growth rates across the country.
Queensland: Townsville led the charge with a staggering 27.1% growth, while Mackay and Gladstone followed with increases of 20% and 26%, respectively.
Western Australia: Perth surged by 21%, and regional hubs like Bunbury recorded 24.5% growth.
South Australia: The Barossa region achieved a solid 13% increase (which we predicted on our podcast - see the episode here. Predicted Growth Areas, Sub-$800K) with areas like York Peninsula and Murray also performing strongly.
New South Wales: The Tweed Valley saw an impressive 11.2% rise, emphasising the appeal of coastal and semi-urban living.
Source: CoreLogic
Affordability Driving Demand
The key to these regional success stories? Affordability. Buyers increasingly sought out areas where property prices allowed for lower entry points. Perth, for example, remains Australia’s most affordable housing market and saw demand skyrocket as a result. Similarly, units—typically priced lower than houses—outperformed traditional housing across many markets, reflecting shifting buyer preferences.
This trend wasn’t limited to regional areas. In urban centers, where high property prices have long been a barrier, more affordable housing types began gaining traction. However, these gains were uneven, as some oversupplied areas, like Zetland in Sydney, reported negative growth.
Capital Cities: Mixed Results
While regional areas flourished, capital cities presented a mixed bag in 2024:
Sydney: Growth of 3.3% was driven by high demand in select suburbs, but oversupply in the apartment market dampened broader results.
Melbourne: Property values were flat, with average growth hovering at 0.7%.
The disparity between regional and metropolitan performance highlights a key trend: affordability and lifestyle are becoming more important to buyers than proximity to CBDs.
Looking Ahead to 2025
As we move into 2025, the trends of 2024 offer valuable insights:
Regional Growth Will Persist: Affordability and lifestyle changes will likely continue driving demand in regional areas.
Interest Rate Stability Is Key: If the RBA maintains its cash rate, buyers can expect another year of planning with confidence.
Opportunities in Affordable Segments: Whether in regional hubs or affordable urban pockets, buyers and investors have a chance to secure high-growth properties in underexplored areas.
Your Next Step in Property Investing
Whether you’re considering a move to Australia’s booming regional markets or looking for hidden opportunities in metropolitan areas, 2024 has shown one thing - the right strategy matters.
For more insights and advice on navigating the property market, check out our latest episodes on YouTube at @TalkPropertyToMePodcast or explore our success stories to see what’s possible.
