Australian Property Prices Decline for First Time in Two Years

National home values dipped 0.1% in December, signaling a slowdown after a prolonged period of growth in smaller capitals like Perth and Adelaide.

CoreLogic data shows national home values fell 0.1% in December 2024, marking the first monthly decline since early 2023.
Smaller capitals like Perth and Adelaide led annual growth with gains of 19.1% and 13.1%, respectively, but their growth rates have slowed in recent months.
Melbourne and Sydney experienced the largest December declines, with values dropping 0.7% and 0.6%, respectively, reflecting affordability challenges and increased supply.
Victoria saw a significant investor sell-off, leading to a 3.6% reduction in rental stock over the year, but rents in Melbourne have fallen slightly in recent months.
Experts predict a mixed outlook for 2025, with possible interest rate cuts and federal policy changes potentially stabilizing the market later in the year.